Increasing offtake from automobile Original Equipment Manufacturers (OEMs), on the back of an improving demand scenario, including pentup demand, strong after market demand, and increased wallet share with its major customers afre likely to be the growth catalysts for the company.
Lumax Auto Technologies, through its wholly owned subsidiaries and joint ventures, has been a manufacturer of a wide range of products including integrated plastic modules, 2/3‐wheeler lighting, chassis, gear shifter, shift towers, emission systems, seat frames, oxygen sensors, and electric devices & components.
The company is engaged with OEM's (Original Equipment Manufacturer's) in passenger vehicle (PV), two-wheeler, 3 wheeler, commercial vehicle and off road vehicle segment. Its key customers include Bajaj Auto, Honda Motorcycles and Scooters, Mahindra & Mahindra, Maruti Suzuki, Tata Motors, and Toyota.
Near normal economic activity, healthy retail sales (Q1FY23 averaging at around 92 per cent of pre-Covid levels), robust demand in PV segment amid new launches in the SUV domain, cut in excise duty on fuels and plummeting key raw material prices (mainly metals) towards the fag end of the quarter post their peak in April-May 2022 were the key highlights for the automobile sector during April-June quarter (Q1FY23).
In FY21-22, Lumax Auto Technologies had recorded its highest-ever revenue & profitability. Overall industry production witnessed 1 per cent growth YoY, whereas the company's consolidated topline grew by 36 per cent in FY21-22.
As regards FY23, the company expects domestic sales and exports to rebound as the global economy (including India) is experiencing a strong recovery. "Moreover, motor vehicle manufacturers announced and/or executed new investment projects to capture the demand from first time buyers in the domestic market," Lumax Auto said in FY22 annual report.
The increasing demand for safety, emission, comfort requirements in automobiles is paving the way ahead for companies focused on supplying import-substitute products to the Indian markets.
"With high growth prospects in the Vehicle industry, the Auto Component sector is expected to rise by double digits in FY 2022-23. The Government’s recent announcements of Production Linked Incentive (PLI) schemes regarding Advanced Chemistry Cell (ACC) Batteries and Auto & Auto Components is expected to pave way for the creation of a state-of-theart automotive value chain," the company said.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app