L&T expands into EV components, to cash in on premiumization wave
New Delhi: Infrastructure-to-information technology conglomerate Larsen & Toubro Ltd (L&T) is joining the Tata group, the Mahindra group and JSW Group in expanding into electric
New Delhi: Infrastructure-to-information technology conglomerate Larsen & Toubro Ltd (L&T) is joining the Tata group, the Mahindra group and JSW Group in expanding into electric vehicle (EV) components such as traction motors, drive control units and premium electronic systems such as advanced driver assistance systems (ADAS). As Indian conglomerates deepen their bets on the country’s fast-growing EV supply chain, L&T has secured an order for traction motors from an electric two-wheeler company and is in talks with passenger and commercial vehicle makers for the same, its management said on Wednesday in a media briefing. “In mobility we are targeting energy security. We believe it is important for the nation to provide energy security, and electric mobility provides a very good hedge,” said Prashant Jain, managing director, Larsen & Toubro Vyoma, and head, L&T Electronic Products & Systems. Also Read | Indian auto component firms seek to match Chinese product timelines With global component companies scaling their presence in the segment, L&T wants to bring homegrown products to increase localization and tweak parts to suit Indian conditions better.
It has developed ADAS solutions and motor control units. Rising ADAS penetration is being fuelled by the growing share of premium models in the passenger vehicle market. The company’s offering will see it compete with local players such as Samvardhana Motherson and Sona Comstar and international players such as Bosch and Continental, among others. EV production India’s largest engineering, procurement and construction (EPC) giant has entered the auto component space to cash in on the EV wave that has already seen the JSW, Tata and Mahindra groups spend on launching new models as well as make in-house components. “L&T has found very good traction with the electric mobility ecosystem where we find a very good positive response from the customers for our offerings,” Jain added. A key moat for L&T will be its high level of localization, said Sudeepth Puthumana, head, mobility business, L&T Electronic Products & Systems.
He said the company has localized about 98% of the traction motor’s components, representing around 70% of the motor’s value, and is continuing to increase local value addition. Also Read | Indian carmakers take a leaf out of Chinese playbook to bring out models quickly The conglomerate wants to bet on import substitution, particularly in EV components sourced from China. The products will be manufactured at its facility in Coimbatore, Tamil Nadu. Traction motors, which convert battery power into motion in EVs, rely on rare earth magnets. Domestic production has come under pressure over the past year after China tightened export controls on heavy rare earth magnets, disrupting supplies to manufacturers. L&T’s management suggested that although its products also use heavy rare earth magnets, the magnets it imports fall outside the scope of China's export licensing requirements, ensuring that production has not been affected. EV adoption A surge in EV sales turned the country into a net importer of auto components in 2025-26, snapping a two-year run as a net exporter.
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