L&T to invest ₹5,000 crore in EV motors and automotive electronics

L&T enters automotive components

Larsen & Toubro has announced its entry into the automotive component sector with a ₹5,000 crore investment program focused on electric-vehicle motors, safety systems and connected-vehicle technology. Business Standard Hindi reported that the spending will be spread over five years and support a new manufacturing center in Tamil Nadu. The initiative gives the engineering conglomerate a direct position in an Indian supply chain that is moving from predominantly mechanical components toward higher-value electronics and software.

The program is being developed through L&T’s Electronic Products and Systems business, led by Prashant Jain, managing director of L&T Vyom and head of the company’s EPS group. It forms part of L&T’s Lakshya 31 strategy. Alongside mobility, the EPS platform covers power electronics, robotics and automation, and electronic system design and manufacturing, drawing on the group’s established strategic-electronics capabilities. Jain described automotive supply as a natural extension of L&T’s engineering base rather than a diversification into an unrelated industry.

Investment spans manufacturing, R&D and testing

The ₹5,000 crore allocation will fund manufacturing, research and development, technology licensing and testing infrastructure. L&T intends to build an intellectual-property-based electronics business rather than limit its role to contract production. The company estimates that its target industrial business-to-business electronics market is currently worth about $2 billion and could reach $4.85 billion by 2031. It is seeking a 10–15% share across its EPS portfolio, although it has not disclosed a separate revenue target for mobility.

The investment comes as electrification, electronics and semiconductor applications reshape India’s automotive supplier industry. According to a Goldman Sachs estimate cited by Business Standard Hindi, the country’s automotive component market is expected to grow by 10% annually, from $86 billion in fiscal 2026 to $124 billion by fiscal 2030. The forecast indicates a larger addressable market for suppliers able to combine vehicle engineering, embedded electronics, software and testing. It also places L&T against established component producers that are expanding beyond mechanical systems.

First order covers 500,000 traction motors

L&T’s mobility business, headed by Sudeep Uthaman, has already secured its first commercial order. The contract calls for the supply of 500,000 electric traction motors to a two-wheeler manufacturer over three years. Large-scale production is due to begin next month at L&T’s factory in Coimbatore. The motors use licensed technology from Israel’s EVR Motors and incorporate that company’s patented trapezoidal-coil architecture. L&T says the design reduces material use and packaging size while delivering higher torque density.

Advanced driver-assistance systems are another target. L&T is positioning ADAS as a mass-market opportunity rather than only a premium feature. Company officials said about 80% of vehicles currently operating on Indian roads lack driver-assistance systems, while ADAS penetration stands at only 7–8%. The opportunity may widen as features including automatic emergency braking become mandatory for commercial vehicles from 2027, with passenger-vehicle implementation also expected. For vehicle manufacturers and component suppliers, the program could add domestic capacity in motors and safety electronics while increasing competition for technology licenses, engineering talent and original-equipment contracts.