The Emerging 100: Lumax Auto, assembling the future

LUMAX AUTO TECHNOLOGIES is the new avatar of a car parts business that began in 1945 as a trader, went on to make lighting systems in 1956, and was among the ancillaries to hitch a ride on India’s first modern car, the Maruti 800, in the 1980s. Japan’s Suzuki Motor Corp., which held a 26% stake in Maruti Udyog Ltd (Maruti Suzuki now), helped create an ecosystem of OEMs (original equipment manufacturers), which could supply Maruti with everything from lights to gearboxes. As India’s automotive supply chain evolves, the focus is shifting from basic components to more sophisticated, technology-led systems spanning interiors, transmission, and alternative fuels. That structural shift is creating new opportunities for Lumax Auto, which is evolving from a parts manufacturer into one that makes complete subsystems. “India’s automotive supply chain is at an extraordinary inflexion point,” says Anmol Jain, managing director, Lumax Auto Technologies. “Our strategic pivot is from being a Tier-I component supplier to what I call a Tier 0.5 systems integrator — a single-window partner that can deliver integrated hardware, electronics, and software solutions to OEMs.” The shift reflects a broader transformation underway across the automotive ecosystem. As vehicles become more software-driven and feature-rich, automakers are looking for suppliers that can deliver integrated cockpit systems that combine displays, controls, and electronics. “Scale alone will not define leadership in this industry anymore — technology depth and integration capability will,” Jain says. “OEMs are increasingly looking at partners who can co-create solutions rather than simply supply components.” For decades, the auto component industry operated largely under a fragmented supplier model, in which passenger vehicle makers sourced dozens of individual parts from specialists. But as vehicles become more connected and technologically sophisticated, the ability to integrate multiple subsystems — from electronics and lighting to interior architecture and mechanical components — is becoming increasingly valuable. Numbers do the talking Lumax Auto’s strategy to become a systems integrator is already beginning to reflect in its financial performance. The company reported net sales of ₹3,637 crore in FY25, up from ₹2,822 crore in FY24 and ₹1,848 crore in FY23, reflecting strong momentum in passenger vehicle programmes and the benefits of recent acquisitions and partnerships. “Our financial trajectory reflects the early gains of our strategic transformation,” Jain says. “We are seeing stronger operating leverage as our portfolio shifts towards higher value, technology-intensive products.” Profitability has improved alongside scale. The company’s Ebitda rose to ₹465 crore in FY25, while profit after tax was ₹178 crore, up from ₹130 crore in FY24 and ₹93 crore in FY23. Ebitda margins have climbed to roughly 13%, indicating operating leverage and a richer product mix as the firm expands into higher-value automotive systems. According to Jain, the improving numbers also reflect a deeper shift in the company’s revenue profile. As the amount of technology in vehicles increases, automakers want suppliers who can deliver integrated solutions — combining mechanical, electronic, and software capabilities. The Automotive Component Manufacturers Association (ACMA) has also noted this trend. A key pillar of Lumax’s transformation is its expanding presence in vehicle interiors. Lumax’s acquisition of the Indian business of International Automotive Components (IAC), completed in May 2025, has strengthened its capabilities in integrated cockpit systems, door trims, and structural interior modules. Carmakers such as JSW MG Motor India, Hyundai Motor India, Maruti Suzuki India, Mahindra & Mahindra, and Tata Motors are investing heavily in cabin design and digital interfaces to stand out in the passenger vehicle market — across petrol, diesel, and electric models. The push is most visible in SUVs and premium segments, though it is steadily making its way into entry-level cars as well. Larger touchscreens, ambient lighting, digital instrument clusters, and connected features are increasing both the complexity and the value of interior systems. “As part of our long-term strategy, we wanted to increase our wallet share in the passenger vehicle segment, where premiumisation is playing out most aggressively,” Jain says. The IAC acquisition, backed by the IAC group’s promise to continue technology support, has given Lumax engineering depth, exposure to electric vehicles (EVs) and entry into a market for integrated cockpit solutions. IAC India is already embedded in EV programmes. It supplies integrated cockpit systems and door panels for EVs such as M&M’s BE6 and XEV 9e, positioning Lumax at the centre of some of the country’s most closely watched EV launches. Automakers want to consolidate suppliers as vehicle architecture grows more complex. Lumax, combining its strengths in lighting and mechatronics with IAC’s expertise in structural interiors, can offer more integrated systems rather than individual components. Jain believes the “smart cockpit” will become one of the most important arenas of differentiation in the coming decade. As SUV penetration increases and consumers demand richer in-car experiences, the technology and content embedded inside the cabin are rising sharply. “User experience is increasingly defining how consumers perceive value in a vehicle,” he says. “That means the cockpit and interior environment will continue to attract higher investment and innovation from both automakers and suppliers.” Banking on Japanese JV Another growth lever lies in transmission technologies. Through its joint venture with Japan’s Mannoh Industrial, Lumax manufactures gear shifters and related components used across manual, automated manual and automatic transmission systems. When the joint venture was formed in 2014, few cars in India came with automatic transmissions, in which shifters with options of park, reverse, neutral, drive, and low (PRNDL) replaced the need to operate a clutch to change gears. But consumer preferences — particularly in urban markets — have shifted steadily towards convenience and ease of driving, accelerating the adoption of automatic variants across segments. “As Indian consumers increasingly opt for automatic variants across SUVs, sedans, and even entry-level hatchbacks, the value of what we supply per vehicle rises significantly,” Jain says. Automatic gearshift systems command higher realisations than traditional manual levers, creating a structural growth opportunity for suppliers with strong technological capability. The partnership has also enabled Lumax to deepen its engineering expertise in transmission components and strengthen relationships with several passenger and commercial vehicle manufacturers. As more vehicles shift to automatic transmissions, the company expects this business to remain a key growth driver. Bet on powertrains Alongside its EV push, Lumax is also building a presence in alternative fuels. In November 2024, it acquired a majority stake in Greenfuel Energy Solutions, which manufactures fuel delivery and storage systems, primarily for CNG and hydrogen-powered vehicles. The move reflects a view that India’s energy transition will follow a multi-technology pathway rather than a single solution. While electric mobility is gaining momentum, alternatives such as CNG and hydrogen are expected to remain relevant for the foreseeable future. “We are consciously building optionality into our portfolio,” Jain says. “Alternative fuels are not a side bet — they are an integral part of how we are future-proofing the business.” “India’s mobility transition will be multi-modal and extended,” Jain says. “The supplier positioned across multiple pathways — not just one — is the one that wins.” Greenfuel manufactures components for CNG and hydrogen fuel delivery systems, including valves, filters, and fittings. The company recently established a localised manufacturing facility for ferrule-less tubes and fittings at Manesar. Users had to import this earlier. By making these parts locally, the company can lower costs, rely less on imports and ensure smoother supplies for automakers as demand rises. It also ties in with the push to build stronger manufacturing capabilities in India. Growth outlook Lumax Auto’s growth reflects the impact of these strategic moves. Over the past three years, it has delivered a revenue CAGR of about 35%, while profit after tax has grown at nearly 39% CAGR. Return ratios have also strengthened, with return on net worth at around 26.6% in FY25 and return on capital employed exceeding 22%, highlighting improving capital efficiency as the company scales its operations. The company has developed a roadmap focussed on scale and technology integration. “Over the next three to five years, our growth roadmap is anchored on scale, resilience and customer centricity. We have articulated our north star vision targeting a 20% revenue CAGR from FY25 to FY31 through a balanced mix of organic expansion and strategic inorganic opportunities. This vision also endeavours to enhance Ebitda margins closer to 20% (from FY25 levels of 14%) while pushing up our RoCE to 20% (from FY25 levels of 18%),” says Jain, referring to return on capital employed. To support that ambition, Lumax is strengthening its technology capabilities through initiatives such as the SHIFT (Smart Hub for Innovation & Future Trends) technology centre, while continuing to explore acquisitions, joint ventures and partnerships that expand its systems portfolio. According to a recent report by Joindre Capital Services, rising premiumisation, increasing electronic content per vehicle and a steady shift towards SUVs are driving higher value addition across the automobile components ecosystem. Suppliers with capabilities spanning multiple domains — mechanical, electrical and software-linked systems — are better positioned to capture a larger share of the value pool, the report says. For Lumax Auto Technologies, the next phase of growth will depend on how effectively it can translate its expanding capabilities — from smart interiors to alternative fuels — into deeper partnerships with automakers as they navigate the transition to a new era of mobility.

The Emerging 100: Lumax Auto, assembling the future

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