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India's Car Lights: Premiumisation Drives Growth
15 Oct
Summary
- Automotive lighting market projected to grow significantly by 2031.
- LED adoption and sophisticated systems boost per-vehicle lighting value.
- New safety standards are pushing carmakers toward advanced lighting tech.
The automotive lighting market in India is poised for substantial growth, with projections estimating a rise to $2.44 billion by 2031. This expansion is fueled by a fundamental shift towards premiumisation, where advanced LED lighting and intricate systems are increasingly replacing traditional halogen lamps. As a result, the value of lighting fitted into each vehicle is escalating.
Automakers are differentiating their models through signature lighting, often placing main headlamps lower and utilizing slim LED daytime running lights higher up. This trend, coupled with increasingly stringent safety standards harmonized with global regulations, is compelling manufacturers to adopt superior lighting technologies. Consequently, component suppliers are benefiting from higher earnings per vehicle.
Companies like Lumax Industries and UNO Minda are well-positioned to capitalize on this evolution. Lumax Industries, for instance, reported record revenues in FY26, with 61% from LED products, and expects strong annual growth driven by its substantial order book of LED-based products. UNO Minda is also expanding its capacity, enhancing its broader portfolio that includes interior ambient lighting.
The investment case for these companies hinges on their ability to translate this technological shift into sustained profit margin improvements. While growth in vehicle production provides a tailwind, the core opportunity lies in increasing the content value per vehicle through premium lighting solutions.
