Gabriel India's passenger vehicle (PV) suspension business has lagged industry growth during the first half of FY27, as an unfavourable vehicle-model mix prevented the company from fully benefiting from strong demand.
The company’s management said demand for smaller cars had improved following changes in GST, but Gabriel had limited exposure to some of the faster-growing models.
"The models where we are present, unfortunately, have not done so well as compared to the models where I think we have not been there," Atul Jaggi, Managing Director (Ride Control), said during Gabriel India's Q2 FY27 earnings call.
Acknowledging the weaker performance, Jaggi said, "But yes, we are lagging behind on the PV side."
The underperformance comes at a time when India's passenger vehicle industry has recorded strong growth. According to figures shared by Gabriel's management, PV production increased 25% year-on-year during the September quarter, while growth for the first half of FY27 stood at 21%. Utility vehicle production increased 25% during the first half, reflecting continued demand for SUVs.
Sunroof Segment Outlook
While its suspension business has not fully benefited from this growth, Gabriel expects its sunroof operations to gain from new Hyundai and Kia vehicle programmes, particularly the recently launched Hyundai Bayon.
Mahendra Goyal, Group CEO and Managing Director of Gabriel India, said Hyundai expects annual Bayon volumes of approximately 100,000 vehicles, with around 60% intended for the domestic market and the remaining 40% for exports.
According to management, panoramic sunroofs, which Gabriel supplies, are expected to account for around 75-80% of the relevant vehicle mix.
Hyundai launched the Bayon in India on October 26 at a starting price of ₹9.99 lakh. The India-manufactured SUV, which offers a panoramic sunroof and Level 2 ADAS features, will also be exported to more than 50 international markets.
Goyal said Hyundai was currently building inventory for the newly launched model, resulting in higher initial component offtake. However, he cautioned that the monthly supply rate could moderate once production stabilises.
Gabriel's sunroof business has faced challenges in recent quarters because of weaker-than-expected demand for certain Hyundai models and production disruptions. Management said the AY1 programme had not achieved expected volumes, while a fire at one of Hyundai's suppliers had affected vehicle production and, consequently, sunroof supplies.
The company said several additional Hyundai-Kia programmes had already entered commercial production, while another programme, identified as AI4, is expected to begin production next year.
Gabriel India is also pursuing sunroof orders from Tata Motors and Mahindra & Mahindra as it looks to expand beyond its existing Hyundai and Kia customer base. Goyal said securing additional customers could prompt fresh investments in manufacturing capacity or the relocation of existing capacity, depending on customer requirements.
ADAS Partnership and Proposed MoRTH Regulations
Beyond sunroofs, Gabriel expects its ADAS business to grow faster than the overall industry, supported by increasing adoption of safety technologies and proposed regulations covering a wider range of vehicles.
"We see this business definitely growing much more than what the industry is growing," Goyal said, although he did not provide a specific revenue growth forecast.
The outlook comes as the Ministry of Road Transport and Highways (MoRTH) has proposed mandatory advanced emergency braking systems (AEBS) for new M1 passenger vehicle models from October 1, 2030, extending to all models from October 1, 2032. The proposal also specifies requirements for other driver-assistance technologies. The rules are yet to be finalised.
Gabriel expects to benefit from these developments through its investment in HL Klemove, which already has an established ADAS business and manufacturing facilities in India. Goyal said the company has been operating in the segment for seven to eight years, giving Gabriel access to existing technology, customers and production capabilities.
The wider HL Group also has expertise in steering and braking systems, which management believes can support integrated safety solutions for vehicle manufacturers. Gabriel is mapping product opportunities across passenger vehicles, commercial vehicles, two-wheelers and three-wheelers in response to evolving safety requirements.
HL Klemove already has business relationships with Hyundai, Tata Motors and Mahindra & Mahindra, while the company is looking to increase its penetration with other manufacturers, including Maruti Suzuki.
The increasing focus on ADAS and sunroofs forms part of Gabriel's broader strategy to expand into higher-value automotive technologies alongside its traditional suspension operations.
During Q2 FY27, Gabriel India's consolidated revenue increased 23% year-on-year to ₹1,608 crore, while EBITDA rose 12% to ₹141 crore. Its EBITDA margin narrowed to 8.8% from 9.6% a year earlier, reflecting pressure on profitability despite revenue growth.
Management also cited rising commodity costs, higher logistics expenses, and delays in recovering increased costs from customers as continuing challenges across its businesses.