Lumax Auto's Anmol Jain sees content per vehicle rising 10-15% by FY29 on premiumisation

What happened

Lumax Auto Technologies expects the value of components it supplies per vehicle to rise 10-15% by 2028-29, helped by more features, localisation and green-fuel technologies. It currently supplies parts worth ₹70,000-75,000 per passenger car and ₹20,000-22,000 per two-wheeler.

Confirmed

Global impact / market context

Selling more content per vehicle means each car or two-wheeler carries more of Lumax's parts, so revenue can grow even if vehicle sales are flat. Higher value per vehicle can lift profit per sale if added features carry better pricing.

Analyst inference

The company is investing in mechatronics, which means electrical and electronic parts such as body control modules, switches and sensors. That spending positions it to capture growing electronic content as automakers add features and localise production.

Analyst inference

What to watch

1. Lumax reported about 35% revenue growth in the first half across original equipment manufacturers (OEMs), the carmakers it supplies, and management sees no headwinds for the second half. Confirmed
2. The company plans to keep investing in its mechatronics business, covering electrical and electronic components, to gain from rising electronic content in vehicles over the coming years. Proposed
3. Watch whether the 10-15% content per vehicle target by FY29 is met, since falling short would mean the premiumisation and localisation strategy is delivering less revenue growth than promised. Analyst inference

Evidence

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