Auto interior systems and component supplier IAC India is gearing up for its next phase of growth, with plans to diversify its customer base, expand product portfolio, scale up engineering capabilities, strengthen presence in commercial vehicle segment and enter the aftermarket segment, said a senior company official. 

Over the next five years, the company expects its revenue to grow at a 20% compounded annual growth rate. “We continue to stay at our original target of 20% CAGR over the next five years,” Managing Director Sunil Koparkar said.

In FY25, IAC India reported revenue of about ₹1,218 crore. Currently, the passenger vehicle parts business accounts for nearly 90% of its topline, with the balance coming from the commercial vehicle segment. Around 80% of the business is linked to internal combustion engine platforms, while the electric vehicles contribute the remaining 20%. 

A wholly-owned subsidiary of Lumax Auto Technologies Ltd, the company manufactures instrument panels, cockpits, door trims, floor consoles, headliners and other interior systems for leading OEMs. In India, the company it supplies to automakers such as Mahindra & Mahindra, Maruti Suzuki, Volkswagen, VE Commercial Vehicles, among others. 

Mahindra contributes nearly 80% of IAC India’s topline. To reduce this dependence, the company is exploring new partnerships and working with multiple OEMs to expand its product portfolio.

“Mahindra will always be our primary customer. We have a very good strategic partnership with them. We won't necessarily dilute our portfolio of Mahindra…” said Koparkar. “What we are able to do with Mahindra today, other customers are not ready yet. We have been working on that concept. Once that is successful, I think we will be able to grow that market share specifically for those customers…every new assembly line allows us to reshape their thinking process.”

New Partnerships

According to Koparkar, IAC India is working on several projects with other OEMs to expand its product portfolio and offer additional services. The company is also in discussions with Vietnamese EV manufacturer VinFast and India’s JSW Group to supply parts for their cars. “We are engaged with them. It is at a very early stage,” he said. 

VinFast currently sells electric SUVs, the VF6 and VF7, in India as completely knocked down units. However, the company has committed a $2 billion investment to establish an integrated EV manufacturing facility in Thoothukudi, Tamil Nadu. Meanwhile, JSW Motors Ltd plans to launch its first vehicle in India before Diwali this year. The company has partnered with Chinese automaker Chery to introduce the rebadged version of the plug-in hybrid SUV, the Jetour T2, in the Indian market. 

New Plants, Capex

To support growth, the component maker is also evaluating new manufacturing facilities linked to upcoming customer programmes. “We are planning some new plants for new automotive products,” Koparkar said, adding that capital expenditure for the same will be aligned with programme timelines and product demand.

The company typically spends about 1.5-2% of revenue on R&D. Further, with the transition to cleaner mobility solutions, the company is also focusing on increasing content per vehicle and expand into newer interior modules. 

Commercial Vehicle Opportunity

While passenger vehicles remain the core business, IAC India sees a strong opportunity in commercial vehicles as truck and bus cabins become more feature-rich. “From a product perspective, CV presents opportunity,” Koparkar said. “As the CV market looks for more comfortable interiors like PVs, that will drive change.”

Features such as better cabin ergonomics, air-conditioning and safety systems are increasingly being adopted in trucks and buses. The company already supplies to Volvo-Eicher, and Mahindra sees scope to expand further.

Commercial vehicles contribute about 10% of revenue. Koparkar expects the segment’s value contribution to rise even if the percentage share remains stable due to faster growth in passenger vehicles.

Aftermarket Ambitions

The company does not yet have a direct aftermarket presence but is evaluating opportunities through Lumax’s distribution network. “Currently, we are not involved in the aftermarket,” Koparkar said. “But being part of the Lumax group gives us an advantage to coordinate future opportunities.”

He added that the company is studying market gaps and product suitability before entering the segment. Industry executives note that the aftermarket is growing faster than OEM supply in some categories, making it a potential medium-term opportunity.

Engineering Expansion

A key pillar of IAC India’s growth strategy is the expansion of its engineering and design capabilities. The company plans to increase its engineering workforce from over 300 to more than 500 over the next few years. “We were primarily the IAC group engineering development centre and will continue to provide those services,” Koparkar said.

The company’s engineering team provides studio support, design validation and advanced CAE analysis, including NVH, torsion and mold flow studies. These services are offered both to global group companies and local OEMs. In some cases, engineering support can lead to full component supply contracts.

In FY26, the company expects to process around 30 patents, reflecting its push to build intellectual property in interior systems and materials.

Currently, the company employs about 4,000 people across six manufacturing facilities and two engineering centres in India. Its main plants are located in Chakan, Nashik, Manesar and Bidadi, with a corporate and engineering hub in Pune.

Sustainability and Lightweighting

Premiumisation and electrification are reshaping interior design. Automakers are seeking lighter materials and better cabin quality to meet efficiency and emissions targets. “What customers are looking for is lightweighting in any shape or form,” Koparkar said. “If sustainable material can deliver weight reduction, it becomes a serious play.”

He said India still lacks a full circular ecosystem for sustainable materials, which keeps costs high. “In Europe, sustainable materials are seen as premium. In India, there is still stigma,” he added.

Leveraging Lumax Integration

Koparkar said the full acquisition by Lumax will help integrate interior modules with Lumax’s lighting, mechatronics, control systems and aftermarket portfolio.

Lumax Auto Technologies completed the acquisition of IAC India in 2025, where it picked up the remaining 25 per cent stake in the company from the International Automotive Components Group for Rs 221 crore. In 2023, it had purchased 75% stake in IAC at an equity valuation of Rs 440 crore. The acquisition is aimed at moving Lumax closer to a “Tier-0.5” supplier model, where it can deliver integrated modules rather than standalone components.

“With the integration and customer synergies, we believe we can sustain 20% growth over the next five years,” Koparkar said. The component maker contributes to about one-third of Lumax Auto Technologies’ revenue.