With tighter fuel-efficiency requirements, increasing vehicle content and rising exports expected to create new growth opportunities for the sector, Indian auto component makers are looking at a ₹9,000-10,000 crore addressable market in lightweighting products by financial year 2030-31 (FY31).
According to a report by Equirus Securities, tighter CAFE-3 fuel-efficiency requirements are expected to increase original equipment manufacturer (OEM) focus on lightweighting, providing a structural tailwind for the segment.
The broader addressable market for products such as control arms, links, torsion beams and subframes could reach ₹9,000-10,000 crore by FY31, the brokerage said. The brokerage made the assessment in its takeaways from the Equirus India Growth Summit 2026, where it reviewed growth prospects and emerging opportunities across the auto-component sector.
For instance, Sharda Motor Industries is targeting around 15 per cent market share in the segment and sees potential to generate ₹1,400-1,500 crore in revenue, a four-to-five-fold increase from around ₹300 crore currently.
Sharda Motor has also partnered with Donghee to strengthen its design and engineering capabilities and jointly pursue advanced lightweighting products, including subframes and torsion beams, with a focus on technology transfer and localisation.
The growth opportunity is also visible in automotive lighting, with Lumax Industries expecting revenue growth of around 20 per cent in FY27 and more than 20 per cent in FY28, while targeting a 15-20 per cent CAGR through FY31, it said.
Lumax’s revenue is expected to reach around ₹9,000 crore by FY31, supported by an order book of around ₹2,500 crore, of which nearly 90 per cent comprises LED lighting. Around ₹1,500 crore, or 60 per cent of the order book, is expected to enter production by FY28, the report said.
Average passenger-vehicle content for Lumax currently stands at ₹15,000-20,000 per vehicle and is expected to increase 40-50 per cent over the next two years, driven by the adoption of newer and higher-value lighting technologies.
In heavy forgings, Happy Forgings sees revenue potential of around ₹2,000 crore within three years of commencement of commercial production, expected in FY29. The company has already invested around ₹500 crore and plans to invest another ₹1,000 crore based on orders received, the brokerage firm noted.
On the tyre side, rising input costs remain a near-term challenge. Natural rubber prices are currently at a two-year high and raw-material costs are expected to increase 8-10 per cent sequentially in Q2, according to Equirus.
CEAT has taken a 4-5 per cent price hike in July and plans another 2-3 per cent increase in August. Cumulatively, it has taken around 10 per cent price hikes in the replacement market through July, while implementing around a 10 per cent price increase for OEMs in Q2.
Higher freight costs are also weighing on CEAT’s international business, with freight rates having risen around 2-3 times and customers deferring deliveries, the report added.
Published on August 20, 2026
