L&T expands localized EV components push from Coimbatore

L&T is scaling traction motors, drive-control units and ADAS systems, backed by a two-wheeler order and OEM discussions. It has localized about 98% of traction-motor components, accounting for roughly 70% of motor value, as it targets import substitution in India’s premiumizing EV market.

— Source publishedWed, 29 Jul, 2026, 19:47 IST·First seen Wed, 29 Jul, 2026, 19:51 IST·Source Mint · Companies

What happened

Larsen & Toubro · L&T is expanding into localized EV traction motors, drive-control units and ADAS systems, with a two-wheeler order secured and talks underway

Key facts

  • L&T has localized about 98% of traction-motor components, representing around 70% of motor value
  • EV sales rose 25% to more than 2.4 million units in FY26
  • India imported $25.4 billion of auto components in FY26, up 13% year-on-year
  • Auto-component exports were $24 billion in FY26, up 5%
  • Tata AutoComp Systems FY26 revenue rose 70% to ₹22,266 crore
  • Tata AutoComp Systems FY26 net profit rose 48% to ₹1,091 crore

Why this matters

L&T’s push creates partnership opportunities with Indian and global OEMs seeking localized powertrain and vehicle-electronics suppliers, while targeted technology alliances could accelerate its ADAS and control-unit capabilities.

What to watch

  • Disclosure of customer name, order value, annual unit volumes and production start date for the two-wheeler program.
  • New OEM design wins for motors, inverters, drive controllers or ADAS modules.
  • Evidence that localized content reduces bill-of-material costs versus imported assemblies.
  • Capacity additions, capital expenditure and hiring at the Coimbatore facility.
  • Changes in EV subsidy policy, import duties, production-linked incentives and domestic-value-addition requirements.
  • Rare-earth magnet availability, power-semiconductor sourcing and commodity-price movements.
  • Indian two-wheeler EV sales growth and premium passenger-EV model launches.
  • Convert the two-wheeler order into a multi-year supply and capacity-commitment program.
  • Offer integrated traction-motor, inverter, drive-control and software-validation packages to reduce OEM vendor complexity.
  • Increase localization of the remaining high-dependency materials, semiconductor content and magnet supply chain.
  • Pursue passenger-EV, commercial-EV and export-platform opportunities to diversify beyond two-wheelers.
  • Build service, diagnostics and remanufacturing capabilities that can create recurring aftermarket revenue as installed EV fleets expand.

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