Indian auto component makers could address a ₹9,000-10,000 crore market for lightweighting products by FY31, as tighter fuel-efficiency requirements, rising vehicle content and exports create new opportunities, according to Equirus Securities.
The brokerage outlined the opportunity in its takeaways from the Equirus India Growth Summit 2026, covering growth prospects across the auto component sector. Products including control arms, links, torsion beams and subframes are expected to form part of the broader lightweighting market.
Sharda Motor Industries is targeting around 15 percent of this market and expects the business to generate ₹1,400-1,500 crore in revenue, compared with around ₹300 crore currently. Equirus said tighter CAFE 3 fuel-efficiency requirements are expected to increase OEM focus on lightweighting.
Sharda Motor Targets Lightweighting Growth
Sharda Motor has partnered with Donghee to strengthen its design and engineering capabilities and pursue lightweighting products such as subframes and torsion beams. The partnership includes technology transfer and localisation.
The company has also secured export orders worth around ₹120 crore annually, with peak revenue contribution expected by FY29. It is evaluating an independent entry into the medium and heavy commercial vehicle segment and has entered the premium two-wheeler emissions segment, which it estimates has an addressable market of ₹150-200 crore.
Lumax Industries Sees Higher Automotive Lighting Content
Automotive lighting is another growth area highlighted by Equirus. Lumax Industries expects revenue growth of around 20 percent in FY27 and more than 20 percent in FY28, while targeting a 15-20 percent CAGR through FY31.
The company’s revenue is expected to reach around ₹9,000 crore by FY31, supported by an order book of approximately ₹2,500 crore. Nearly 90 percent of the order book comprises LED lighting, while around ₹1,500 crore, or 60 percent, is expected to enter production by FY28.
Lumax currently has average passenger-vehicle content of ₹15,000-20,000 per vehicle. This is expected to rise 40-50 percent over the next two years as newer and higher-value lighting technologies are adopted.
Happy Forgings Expands Into Heavy Forgings
Happy Forgings expects potential revenue of around ₹2,000 crore within three years of starting commercial production of its heavy forgings programme, which is expected in FY29.
The company has invested around ₹500 crore and plans a further ₹1,000 crore of investment based on orders received. It has secured data-centre-related orders from Cummins and Caterpillar, with realisations of around ₹800-1,000 per kg.
Happy Forgings expects gross margins of around 65 percent for forged crankshafts and 80 percent for machined crankshafts. It also expects passenger vehicles to contribute 12-15 percent of revenue over the next three to four years, while industrial applications are expected to account for 35-40 percent.
Divgi Targets AWD, Automatic Transmission Opportunity
Divgi Torqtransfer Systems sees scope for higher adoption of all-wheel-drive and four-wheel-drive systems in India. Penetration is currently below 5 percent, compared with around 40 percent in the US, according to Equirus.
The company estimates an addressable market of around 150,000 units for automatic transmissions used in rear-wheel-drive SUVs and pickup trucks. Divgi is targeting 50,000 units, which could translate into around ₹500 crore of revenue.
The opportunity would require additional capex of ₹100-200 crore, with production expected to begin in the second half of calendar 2028.
Exports are also expected to become a larger contributor, with Divgi targeting component exports of around ₹80 crore in FY27, compared with ₹23 crore in Q1FY27. The company expects exports and international operations to eventually contribute 30-40 percent of revenue.
Kross, Uniparts India Target Export And Industrial Growth
Kross is targeting revenue of around ₹850 crore in FY27, supported by demand from trailer and tractor applications, new products and capacity expansion.
The company has commissioned an axle-beam extrusion plant, with commercial production scheduled to begin in August 2026. Kross expects to be the first company in India to use the extrusion process for trailer axle beams and plans to charge a 2-3 percent premium for the product.
Exports currently account for around 4.5 percent of Kross’s revenue, with the company targeting approximately 10 percent over the next two to three years. Export margins are around 18 percent EBITDA.
Uniparts India expects FY27 growth to be a few percentage points above the 21 percent achieved in FY26. Construction equipment, which currently contributes around 45 percent of revenue, is expected to remain the key growth driver.
The company has a new-business order book of more than ₹225 crore, with around 35 percent linked to large agriculture products and another 35 percent to construction equipment.
Higher Rubber Costs Put Pressure On Tyre Makers
Rising input costs remain a near-term challenge for tyre manufacturers, according to Equirus. Natural rubber prices are at a two-year high, while raw-material costs are expected to increase 8-10 percent sequentially in Q2.
CEAT has implemented a 4-5 percent price increase in July and plans another 2-3 percent increase in August. It had cumulatively raised replacement-market prices by around 10 percent through July and implemented around a 10 percent price increase for OEMs in Q2.
Higher freight costs are also affecting CEAT’s international business, with freight rates increasing around two to three times and customers deferring deliveries, Equirus said.