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Larsen & Toubro (L&T) has announced its entry into the automotive components sector

ICICIdirect Research 30 Jul 2026 DISCLAIMER

News: Larsen & Toubro (L&T) has announced its entry into the automotive components sector, with plans to invest ₹5,000 crore over the next five years to manufacture EV motors, automotive safety systems and connected vehicle technologies at a new manufacturing hub in Tamil Nadu. The investment, led by L&T's Electronic Products & Systems (EPS) business under its Lakshya 31 strategy, will be deployed across manufacturing, R&D, technology licensing, testing infrastructure and IP-led electronics development. L&T is targeting a 10–15% market share in the industrial B2B electronics market, which it estimates will grow from US$2 billion currently to US$4.85 billion by 2031.

View: The investment marks L&T's strategic expansion into high-growth automotive electronics, leveraging its existing capabilities in electronics, automation and manufacturing. The initiative diversifies the company's revenue base beyond traditional EPC while positioning it to benefit from rising EV adoption, vehicle electrification and increasing electronics content in automobiles over the long term.

Impact: Positive

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