Indian auto-component makers are looking at an addressable market of Rs 90-100 billion in lightweighting products by FY31, driven by tighter fuel-efficiency requirements, increasing vehicle content and rising exports, according to Equirus Securities.

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.

The broader addressable market for products such as control arms, links, torsion beams and subframes could reach Rs 90-100 billion by FY31, Equirus said. Sharda Motor Industries is targeting around 15 per cent market share in the segment and sees potential to generate Rs 14-15 billion in revenue, a four-to-five-fold increase from around Rs 3 billion currently.

Tighter CAFE 3 fuel-efficiency requirements are expected to increase OEM focus on lightweighting, providing a structural tailwind for the segment, the report said.

Sharda Motor has 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 company has secured export orders worth around Rs 1.2 billion annually, with the business expected to reach peak revenue contribution by FY29, Equirus said. It is also evaluating an independent entry into the medium and heavy commercial vehicle segment and has entered the premium two-wheeler emissions segment, which it estimates has an addressable market of Rs 1.5-2 billion.

Growth opportunities are also emerging in automotive lighting. Lumax Industries expects 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.

Lumax’s revenue is expected to reach around Rs 90 billion by FY31, supported by an order book of around Rs 25 billion, of which nearly 90 per cent comprises LED lighting. Around Rs 15 billion, 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 Rs 15,000-20,000 per vehicle and is expected to increase by 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 Rs 20 billion within three years of the commencement of commercial production, expected in FY29. The company has already invested around Rs 5 billion and plans to invest another Rs 10 billion based on orders received.

It has secured data-centre-related orders from Cummins and Caterpillar, with realisations of around Rs 800-1,000 per kg. The company expects gross margins of around 65 per cent for forged crankshafts and 80 per cent for machined crankshafts, with nearly half of the gross margin expected to translate into EBITDA margins.

Happy Forgings also expects its passenger-vehicle business to contribute 12-15 per cent of revenue over the next three to four years, while industrial applications are expected to account for 35-40 per cent, indicating increasing diversification beyond traditional commercial-vehicle and farm segments.

Transmission and driveline components are another emerging growth area. Divgi Torqtransfer Systems sees significant headroom in India’s all-wheel-drive and four-wheel-drive market, where penetration is currently below 5 per cent compared with around 40 per cent in the US.

The company’s addressable market for rear-wheel-drive SUV and pickup-truck automatic transmissions is around 150,000 units, with Divgi targeting 50,000 units that could translate into around Rs 5 billion in revenue. The opportunity would require additional capex of Rs 1-2 billion, with production expected to begin in the second half of calendar 2028.

Exports are also emerging as an important growth lever. Divgi is targeting component exports of around Rs 800 million in FY27, against Rs 230 million in Q1FY27, while exports and international operations are expected to eventually contribute 30-40 per cent of revenue.

Kross Ltd is targeting revenue of around Rs 8.5 billion in FY27, supported by sustained demand across the trailer and tractor segments, the ramp-up of new products and capacity expansion.

The company has commissioned its axle-beam extrusion plant, with commercial production scheduled to begin in August 2026. Kross expects to be the first company in India to adopt the extrusion process for trailer axle beams and plans to charge a 2-3 per cent premium for the product.

Kross’s exports currently account for around 4.5 per cent of revenue and are targeted to increase to around 10 per cent over the next two to three years. Export margins are higher at around 18 per cent EBITDA, Equirus said.

Uniparts India expects FY27 growth to be a few percentage points higher than the 21 per cent achieved in FY26, with construction equipment, which currently contributes around 45 per cent of revenue, remaining the key growth driver.

The company has a new-business order book of more than Rs 2.25 billion, with around 35 per cent related to large agriculture products and another 35 per cent to construction equipment.

On the tyre side, rising input costs remain a near-term challenge. Natural rubber prices are currently at a two-year high, while raw-material costs are expected to increase 8-10 per cent sequentially in Q2, according to Equirus.

CEAT took 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 two to three times and customers deferring deliveries, the report said.