Sunil Koparkar, Managing Director, IAC India, outlines the company’s strategy to reduce customer concentration, expand exports and leverage group synergies following its integration with the Lumax Group.

As India’s automotive interior market evolves towards premiumisation, localisation and faster product cycles, IAC India, part of the Lumax Group, is repositioning itself beyond a single-customer dependency model – without diluting its core partnerships.

IAC India continues to derive a significant share of its revenue from Mahindra’s passenger vehicle business. While the concentration remains high, Koparkar is clear that diversification will be driven through growth rather than dilution.

“Mahindra will always be our primary customer. We have a very strong strategic partnership. But we are also working on expanding with other OEMs and in the commercial vehicle space. Our goal remains a 20 percent CAGR,” he says.

For FY2025, IAC India USD 140 million in revenue, and is targeting a 20 percent growth in FY2026. The company counts Mahindra as its primary customer with almost 78 percent of its business coming from them, while Maruti Suzuki India (12%), Volvo Eicher Commercial Vehicles (5%), Skoda-Volkswagen (3%) and Stellantis (1%) contribute towards the remaining business.

What’s more, responding to the company’s expansion plans, Koparkar revealed, that IAC Group, in addition to introducing new products, is also in talks with new-age players who have just entered Indian market (and also planning too) for supplying products.

Currently, passenger vehicles account for roughly 90 percent of the business, with commercial vehicles forming the balance. Value-wise, Koparkar expects CV contribution to rise, even if percentage splits remain broadly similar due to the rapid growth of PV volumes.

Responding to a query on the potential growth from the CV segment, Koparkar said, “There is clear potential in CV interiors. As the CV market moves towards more comfortable cabins — with features like airbags, HVAC and infotainment — the opportunity for interior suppliers increases. Through Volvo Eicher, we have already helped drive that trend in India.”

When asked about the company’s expansion plans, Koparkar also stated that IAC Group is open to expanding to new regions as it aims to operate closer to its customers. One of the potential new projects for the company could very well be Chennai, as the company is in early talks with a new CV customer as well as VinFast.

Engineering as a Standalone Growth Lever

A key pillar of IAC India’s strategy is its expanding engineering capability. The company has been scaling up its R&D and product development team and increasingly positioning engineering services as a distinct revenue stream.

The company at present, employs over 300 engineers in India, which it aims to scale it upto 400-plus by next year and 500-plus in the coming few years.

Historically, the Indian Engineering Centre supported the global IAC Group. “We were primarily the IAC Group engineering development centre. We will continue to provide those services. But now, besides global support, we are also offering engineering services to local OEMs,” Koparkar explains.

These services span studio collaboration, basic product design, CAE analysis and prototype development. In some cases, this can potentially evolve into full-scale supply programmes.

Importantly, innovation is now being formalised locally. “This year alone, we are in the process of filing about 30 patents,” he says. Earlier, intellectual property was subsumed under the global entity; now, filings are being initiated in India.

R&D investment remains aligned with group benchmarks at around 1.5–2 percent of revenue.

Exports: Measured Ambition

In terms of export potential, it currently contributes less than 5 percent towards the revenue, primarily through smaller kinematic parts. Direct exposure to the US market is negligible.

“Tariff-related uncertainty does not affect us because we do not export to the US,” Koparkar says. “Logistically, it does not make sense to ship our large interior parts there.”

Europe remains the primary export target. “The opportunity lies in leveraging our design capabilities and local development strengths. If logistics can be managed efficiently, there is room to grow.”

He also sees the Lumax Group’s aftermarket division as a future vehicle for export expansion.

Localisation and Supply Chain Resilience

On the localisation front, IAC India has made significant progress. “Last year was the first time we were able to localise over 99 percent of our tooling and development in India,” Koparkar states. Machinery on shop floors is largely localised, with only certain raw materials still imported.

The semiconductor crisis, he adds, had minimal direct impact. “We do not source electronics for our products — that is handled by the customer. However, from a development perspective, we are evaluating secondary substitutes for imported components, so we are prepared in case of disruptions.”

Premiumisation, Sustainability and AI

Premiumisation is currently the dominant interior trend. “Customers are moving away from basic plastics to more premium-feel interiors. Electronification is a big driver,” Koparkar says.

Sustainability, however, remains nascent in India. “There is no specific push for sustainable materials yet. What OEMs are looking for is lightweighting to meet upcoming CAFE norms. If a sustainable material delivers significant weight reduction, then it becomes serious.”

He points to jute, coir and bamboo fibres as potential alternatives but stresses that ecosystem-level collaboration is essential. “Unless a circular economy develops around us, sustainable materials will struggle to scale.”

On automation, operations across IAC’s six plants are roughly a 50:50 mix of automated and manual processes, depending on volume justification. Cobots and semi-automation are used where full automation does not offer viable returns.

AI, meanwhile, is expected to influence design more than manufacturing. “We see AI helping us accumulate design learnings and reduce design cycle times. Its impact will be more visible in engineering services than on the shop floor.”

Faster Development Cycles

Product life cycles are shrinking rapidly. “It used to take five years to develop a car,” Koparkar reflects. “With the XUV700, we worked with the customer to shrink that to 42 months. EVs are being developed even faster.”

As development timelines compress and interiors become more technology-intensive, IAC India is betting on engineering depth, localisation strength and group synergies to sustain its 20 percent growth ambition – while steadily broadening its customer and geographic footprint

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Horse Powertrain, a global leader in innovative and low-emission powertrain systems, is all set to unveil a new ‘all-in-one’ powertrain, the X‑Range C15 Direct Drive, at the Beijing Auto Show 2026. The unit consolidates a four-cylinder engine, transmission, power electronics and an electric motor into a single shared housing. Designed for rear subframe mounting, double isolated installation significantly improves noise, vibration and harshness.

This system replaces the rear electric drive unit on existing battery electric vehicle platforms. A manufacturer can maintain one common architecture across battery electric, hybrid, plug in hybrid and range extended electric model lines without substantial design or production changes. The X‑Range C15 Direct Drive joins the Horse F15 for front drive units and the Horse C15 range extender.

The 1.5-litre four-cylinder engine comes in two states. A naturally aspirated version produces 70 kilowatts for B and C segment cars. A turbocharged variant delivers 120 kilowatts for larger D segment vehicles and light commercial vans. Both integrate with a dedicated hybrid transmission and two electric motors.

The two motors follow a P1 plus P3 configuration. The P1 motor acts as a generator, outputting 70 kilowatts in the naturally aspirated variant or 110 kilowatts when turbocharged. The P3 motor provides electric traction independently in serial mode or together with the engine in parallel mode, where direct connection boosts efficiency beyond pure serial hybrids.

Depending on automaker needs, the unit can power rear wheels alone or enable all-wheel drive when paired with another electric drive on the front axle. Rear axle placement allows compact exhaust integration, freeing floor space for batteries or passengers. The unit contains a full set of power electronics ready to integrate with a DC‑DC converter, onboard charger and 800-volt booster.

Horse Powertrain will display the X‑Range C15 Direct Drive at the Beijing Auto Show 2026 in Hall A1, Booth A111. A press conference on its strategic vision and hero products is scheduled for 24 April 2026 at 11:40 AM China Standard Time.

Matias Giannini, Chief Executive Officer, Horse Powertrain, said, “The X-Range family of powertrains is about reflecting today’s market realities, allowing automakers to pivot from BEVs to hybrids and range extenders on a single platform, quickly and at scale. The X-Range C15 Direct Drive is an ‘all-in-one’ powertrain, allowing BEV platforms to be converted to HEVs, PHEVs and REEVs with little redesign or tooling changes required, dramatically reducing time-to-market, amortising BEV investments and catering to the diverse array of mobility needs in today’s global market.”

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South Korean automotive major Hyundai Motor Company and Chennai-headquartered two-wheeler and three-wheeler major TVS Motor Company have signed a Joint Development Agreement (JDA) to develop and mass-produce electric three-wheeler (E3W) solutions for the Indian market.

The partnership follows the debut of an electric three-wheeler concept at the Bharat Mobility Global Expo 2025 and aims to address the specific requirements of last-mile mobility in India.

Under the agreement, Hyundai Motor will manage the primary design and lead co-development efforts using its global research and development expertise. TVS Motor will contribute its established electric platform, engineering experience in the three-wheeler segment and local market insights. TVS will also oversee manufacturing operations in India, managing both domestic sales and future export activities.

L-R: Sharad Mishra, President, Group Strategy, TVS Motor Company; K N Radhakrishnan, Director and CEO, TVS Motor Company; Amitabh Lal Das, Chief Legal Officer of Hyundai Motor India and Joongsun Ko, Senior Vice-President of Corporate Strategy & Planning, Hyundai Motor Company.

A central component of the JDA is the localisation of manufacturing. Major components for the E3W will be sourced and produced within India to reduce costs, strengthen the local supply chain and ensure the availability of spare parts. The EV is being engineered with features such as adaptive ground clearance for monsoon conditions, enhanced thermal management for tropical climates and modular interiors for passenger and cargo use.

Joongsun Ko, Senior Vice-President of Corporate Strategy & Planning, Hyundai Motor Company, stated, “Hyundai Motor Company has long explored ways to contribute to improving India’s transportation environment as a key market and our collaboration with TVS Motor is a strategic decision rooted in that effort. We hope the co-developed E3W enables broader access to safer and more sustainable transportation for people across the country.”

Sharad Mishra, President, Group Strategy, TVS Motor Company, said, “At TVS Motor Company, we aim to transform quality of life through sustainable and accessible mobility. The Joint Development Agreement marks an important step in our partnership with Hyundai Motor Company and advances our shared ambition to develop electric three-wheeler solutions. By bringing together complementary strengths - including our electric three-wheeler platform, engineering expertise, and deep understanding of customer needs - we are well-positioned to deliver purpose-built products for India and additional markets."

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The Japan Automobile Manufacturers Association (JAMA), under the new leadership of Chairman Koji Sato, held its first press conference on 19 March 2026. The session focused on the transition from planning to full-scale societal implementation of the New Seven Priority Challenges, an initiative framework adopted in December 2025.

Chairman Sato highlighted a fundamental shift in JAMA’s operational philosophy. Moving away from a ‘reactive’ model based on individual corporate interests, the association is now prioritising long-term collaboration on large-scale challenges that no single company can address alone.

Three Guiding Principles:

• Co-creation: Partnering with sectors beyond the automotive industry (e.g., energy and petroleum).
• Societal Implementation: Moving beyond policy discussion to real-world execution.
• Leveraging Diversity: Utilising the collective strength of JAMA's 14 member automakers.

As of March 2026, JAMA provided a status update on the specific initiatives under review or currently in progress:

The press conference featured insights from JAMA’s Vice Chairmen regarding the necessity of structural reform to maintain global standing:

Toshihiro Suzuki, Vice Chairman, JAMA, emphasised the success of cross-industry dialogue, noting that deep engagement with the petroleum industry has clarified the path toward adopting clean energy solutions.

Toshihiro Mibe, Vice Chairman, stressed that the industry is at a ‘critical juncture.’ He argued that Japan's automotive sector must break away from legacy structures to foster a new type of competitiveness essential for survival in the global market.

Chairman Sato concluded by stating that the ultimate measure of the industry's success will be determined by how effectively these initiatives are integrated into the real world to create a resilient, carbon-neutral mobility society.

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The Federation of Automobile Dealers Associations (FADA) has successfully wrapped up the third edition of Vyapar Delhi alongside the 22nd national Vyapar conclave at Le Méridien in New Delhi. Centred on the theme ‘Vyapar Delhi – Badalti Dilli’, the event gathered over 200 automobile dealers, senior policymakers, original equipment manufacturer leaders, financial institutions, and domain experts. Their goal was to deliberate on the future of automotive retail and mobility within the National Capital Region.

The event was honoured by the presence of Rekha Gupta, Chief Minister of the Government of NCT of Delhi, as the chief guest. Key policy discussions tackled pressing dealer challenges, including the draft Delhi Electric Vehicle Policy, the vehicle scrappage policy, the Municipal Corporation of Delhi’s classification of workshops as industrial versus commercial and the long-pending compensation cess issue. A dedicated technical session offered legal clarity on the cess and a path forward to protect dealers’ legitimate financial credits.

A major highlight was the panel discussion titled ‘Badalti Dilli: Reimagining Passenger Mobility in India’s Capital’, featuring senior leaders from JSW Motors, Volvo Car India, Honda Cars India, BYD India and Nissan Motor India. They explored changing consumer expectations, electrification pathways, product strategy and dealers’ role as critical enablers of India’s mobility transition. Additional sessions covered artificial intelligence-led dealership transformation, future-ready retail practices, and presentations from finance and technology partners.

Road safety remained a strong undercurrent throughout the day, with FADA reaffirming its commitment to helmet and seatbelt awareness, responsible driving behaviour and first response training including CPR at dealership levels. Vyapar Delhi 2026 ultimately reaffirmed FADA’s role as a constructive stakeholder in shaping policy, supporting environmental goals, strengthening road safety outcomes and safeguarding livelihoods.

The Chief Minister said, "We are committed to the mission of a 'Clean Delhi, Green Delhi, and Smart Delhi.' Our government has introduced the country’s most comprehensive EV Policy, allocating INR 40 billion over the next four years to provide subsidies, tax waivers and scrapping incentives that drive us toward green mobility. To tackle pollution at its source, we are revolutionising our transportation sector through massive investments, for the Metro and the establishment of automated fitness centres to ensure every vehicle on our roads is fit and emission-free. A 'Viksit Bharat' by 2047 is only possible with a 'Viksit Delhi.' I call upon our automobile dealers to act as the government's 'working hands' in motivating citizens to shift to clean energy. We are streamlining our policies to make registration easier and more efficient, ensuring that the people of Delhi have a world-class, environment-friendly experience right here in the capital. Together, we will transform Delhi into a city that defines the future of sustainable urban living."

Reiterating FADA’s continued engagement with policymakers, leadership development through FADA Academy, GenX and Women in FADA, as well as sustained legal efforts on the Compensation Cess matter, C S Vigneshwar, President, FADA, said, “Delhi is in motion, not just on its roads, but in its ambition, and at FADA, we believe automobile dealers must be full partners in this transformation. While we fully support the city’s commitment to a greener future and the Draft EV Policy, it is vital that this transition includes the 17,500 trained professionals whose livelihoods are woven into Delhi’s automotive ecosystem. Our vision of ‘Badalti Dilli’ is one where enablement moves faster than enforcement, where economic growth, road safety initiatives like CPR training and our ‘Buckle Up’ campaign and environmental responsibility progress together without leaving anyone behind.”

Shailender Luthra, Chairperson, FADA Delhi, said, “Today’s gathering reflects a changing Delhi and an evolving auto retail trade. The sector today is vastly different from what it was five years ago, and we are witnessing a significant shift driven by rising consumer confidence and aspiration, with Delhi recording a 17 percent growth in vehicle sales as of March 2026. Annual new vehicle registrations stood at nearly 800,000 units. Our industry remains a vital pillar of the city’s economy, with 550 dealership outlets providing employment to over 55,000 individuals and contributing approximately INR 71.5 billion to Delhi’s revenues through motor vehicle taxes and GST – INR 26.5 billion annually in motor vehicle tax and INR 45 billion as GST contribution from the auto sector. The data clearly shows that India is no longer debating electric vehicle adoption; it is actively embracing it. Delhi has witnessed a sharp increase in electric commercial vehicles and a 62 percent rise in electric two-wheeler adoption. To support and lead this transition, FADA has proposed to the Delhi Government the installation of 150 public charging stations at our own cost. In parallel, we are committed to strengthening local employment through skill development centres at ITIs and have also proposed the establishment of a vehicle scrappage centre to further support the government’s environmental objectives. At FADA, we believe we are doing far more than selling vehicles – we are shaping the future of mobility. As Delhi and its businesses evolve, I am confident that our dealers will not only keep pace with change but will lead this vital transformation towards a sustainable future.”

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