The new Electronic Products & Systems business will focus on EV powertrains, ADAS, connected vehicles, robotics and strategic electronics, targeting a market opportunity of nearly $5 billion by 2031.
Mumbai: Larsen & Toubro (L&T) has announced a major foray into electronics manufacturing by establishing a dedicated Electronic Products & Systems (EPS) business, backed by a planned investment of Rs 5,000 crore over the next five years. The initiative is expected to generate around 5,000 direct and indirect jobs while positioning the company in high-growth technology segments including electric mobility, power electronics, robotics and strategic electronics.
L&T estimates the addressable market for its new portfolio will expand from approximately $2 billion today to $4.85 billion by 2031, driven by the rapid adoption of electrification, automation and advanced vehicle technologies.
The newly formed EPS business integrates four verticals—mobility, power electronics, robotics & automation, and strategic electronics—reflecting the company’s strategy to diversify beyond its traditional engineering, procurement and construction (EPC) business into technology-led manufacturing.
Production will be centred at L&T’s 40-acre manufacturing campus in Coimbatore, supported by engineering and research & development centres in Bengaluru and Coimbatore.
Mobility in Focus
Electric mobility has emerged as one of the primary growth drivers for the new business. L&T is developing a portfolio that includes electric traction motors, motor control units (MCUs), integrated electric drive systems, Advanced Driver Assistance Systems (ADAS) and connected vehicle platforms for future mobility applications.
The company has already secured its first production programme with an order to supply 500,000 electric traction motors to a two-wheeler manufacturer. Pilot production is scheduled to begin in August, followed by commercial production from September at the Coimbatore facility. L&T also plans to expand the platform to passenger vehicles and commercial vehicles.
Building Indigenous Technology
According to Prashant Jain, Managing Director, L&T Vyoma and Head – Electronic Products & Systems, India continues to rely heavily on imported automotive electronics technology, with most Tier-1 suppliers bringing global solutions into the country.
“We found that the core technology in auto electronics is not in India. All the Tier-1 suppliers are multinational companies bringing technology from outside, and it is not really customised for the Indian market,” Jain said, adding that research, development and intellectual property (IP) will remain the foundation of the new business. He noted that L&T will initially pursue technology collaborations and joint ventures before progressively building indigenous IP.
Localisation and Future Technologies
Speaking on the mobility roadmap, Sudeepth Puthumana, Head – Mobility Business, L&T Electronic Products & Systems, said the company’s electric traction motors have achieved 98 per cent localisation by components and around 70 per cent localisation by indigenous value, with a similar strategy being followed for motor control units.
Beyond electric powertrains, the company is also working on integrated X-in-1 electric drive systems, Level-2 ADAS developed for Indian traffic conditions and connected vehicle platforms. These technologies are expected to gain momentum as electric vehicle adoption accelerates and vehicle safety regulations become increasingly stringent.
L&T believes its combination of indigenous engineering, manufacturing capability and technology partnerships will enable it to develop competitive electronics solutions for both domestic and international automotive markets while reducing dependence on imported technologies.
