Indian auto component manufacturers are eyeing an addressable market of ₹9,000-10,000 crore in lightweighting products by the financial year 2030-31 (FY31). According to a report by Equirus Securities, this growth is primarily expected to be propelled by tighter CAFE-3 fuel-efficiency requirements, increasing vehicle content, and rising export opportunities that are creating new avenues for the sector.
The brokerage noted that the broader addressable market for specific lightweighting components—such as control arms, links, torsion beams, and subframes—will reach this ₹9,000-10,000 crore milestone by the end of the decade as original equipment manufacturers (OEMs) sharpen their focus on reducing vehicle weight.
Several industry players are positioning themselves to capture a share of this expanding segment. Sharda Motor Industries is targeting a market share of around 15 percent, projecting a revenue potential of ₹1,400-1,500 crore. This marks a four-to-five-fold increase from its current revenue of approximately ₹300 crore. To strengthen its design and engineering capabilities, Sharda Motor has partnered with Donghee to jointly develop advanced lightweighting products like subframes and torsion beams, emphasizing technology transfer and localisation.
Growth prospects are also evident in automotive lighting. Lumax Industries expects revenue growth of around 20 percent in FY27 and more than 20 percent in FY28, targeting a 15-20 percent CAGR through FY31. The company's revenue is projected to reach approximately ₹9,000 crore by FY31, backed by an order book of around ₹2,500 crore, where nearly 90 percent comprises LED lighting. The report notes that about ₹1,500 crore—or 60 percent—of this order book is scheduled to enter production by FY28. Furthermore, Lumax's average passenger-vehicle content currently stands at ₹15,000-20,000 per vehicle and is anticipated to rise by 40-50 percent over the next two years, driven by newer and higher-value lighting technologies.
In the heavy forgings segment, Happy Forgings sees a revenue potential of around ₹2,000 crore within three years of starting commercial production, which is slated for FY29. The company has already invested approximately ₹500 crore and intends to invest an additional ₹1,000 crore depending on incoming orders.
Despite these positive medium-term indicators for lightweighting and components, near-term operational challenges persist, particularly in the tire sector. Natural rubber prices have climbed to a two-year high, pushing raw-material costs up by an expected 8-10 percent sequentially in the second quarter, according to Equirus data.
In response to these cost pressures, tire manufacturer CEAT implemented a 4-5 percent price hike in July, with plans for another 2-3 percent increase in August. Cumulatively, CEAT has raised prices by about 10 percent in the replacement market through July and implemented a similar 10 percent price increase for OEMs during the second quarter. Additionally, rising freight costs—which have surged roughly two to three times—are weighing on CEAT's international business, leading some customers to defer deliveries.
"The shift toward lightweighting in the Indian auto component sector represents a structural evolution driven by regulatory changes like CAFE-3 standards. While firms such as Sharda Motor, Lumax, and Happy Forgings are strategically expanding their capacities and tech partnerships to capture long-term domestic and export demand, supply chain and raw material cost pressures—such as rising rubber and freight rates seen at companies like CEAT—remain critical near-term variables. Founders and business leaders in manufacturing must carefully balance capital expenditure with margin management to navigate these cyclical cost headwinds effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
