Lumax Auto Technologies plans to combine software, mechatronics, telematics and vehicle interior products into integrated systems for automakers as the component maker looks to increase its content per vehicle and move further up the automotive supply chain.
The company plans to use its Bengaluru-based SHIFT technology centre to embed proprietary software into its mechatronics and telematics portfolio and integrate these products further with interior solutions, according to its FY26 annual report.
The aim is to offer integrated, plug-and-play systems directly to original equipment manufacturers (OEMs) rather than supply individual components separately, the company said. The strategy is part of Lumax's broader plan to evolve from a traditional Tier-1 component supplier into what it calls a Tier-0.5 systems integrator, placing it between automakers and conventional Tier-1 suppliers.
“A Defining Upshift is our leap from a traditional, hardware-centric Tier-1 components manufacturer to a technology-led, Tier-0.5 systems integrator capable of delivering complex hardware-software solutions,” the management said in its message to shareholders.
The management message was signed by Chairman D K Jain, Vice Chairman Deepak Jain and Managing Director Anmol Jain.
The strategy builds on initiatives that Lumax has already started. The company's SHIFT centre has been working on software integration for upcoming body control modules and localisation of electronics and software products offered by its joint ventures. The company described its Tier-0.5 transition as a response to OEM demand for modular systems in which hardware and software arrive pre-integrated.
SHIFT to Anchor Software Push
Lumax said its SHIFT (Smart Hub for Innovation and Future Trends) centre in Bengaluru will form a key part of the transition.
The centre has a dedicated team of software engineers and is intended to bring together systems thinking, domain integration and software-hardware development.
The company is betting on the rising software and electronics content of vehicles. In the annual report, it identified software-defined vehicles as one of three major trends reshaping the automotive industry, alongside premiumisation and the transition towards EVs and alternate fuels.
“The era of the mechanical car is giving way to the intelligent vehicle,” the company said, adding that connected functions, sensors, telematics and embedded electronics are increasingly determining the value of a vehicle.
Mechatronics Plant to Bring Four JVs Under One Roof
Lumax is also commissioning a mega mechatronics plant in Manesar, bringing four of its technology businesses under one roof. The facility will house Lumax Yokowo, Lumax Alps Alpine, Lumax Ituran and Lumax FAE. It will have clean rooms and captive printed circuit board and surface-mount technology lines.
Lumax expects the consolidation to generate economies of scale, improve resource utilisation and create operating synergies across the businesses.
Mechatronics, which includes sensors, telematics, antennas and electronic modules, is among the company's fastest-growing technology businesses. Lumax said new products, fresh start-of-production programmes and demand for connected vehicle technologies are driving the segment.
The company expects mechatronics to contribute meaningfully to both revenue growth and margin expansion over the medium term. In FY26, Lumax's mechatronics revenue increased nearly 150% year on year to ₹281 crore, and the segment had an order book of around ₹400 crore.
Premium Interiors Another Piece of Integration Plan
Interior systems will form another part of the integrated offering. Lumax's Advanced Plastics and Interior Systems business supplies products including cockpits, door panels, consoles, trims and other high-value assemblies. The company said integration of IAC India has increased its scale and strengthened relationships with passenger vehicle manufacturers.
Lumax believes higher demand for premium vehicles and SUVs will increase the requirement for sophisticated interiors, ambient lighting and mechatronic products.
It plans to combine these products increasingly with electronics and software rather than approach each category independently. The company is also using its China Resource Centre to track technologies in premium cabin systems and ambient lighting and localise them for Indian automakers at competitive costs.