Lumax Auto Technologies starts CNG supply, wins Maruti orders

Lumax Auto Technologies Limited has begun supplying localized ferrule-less tubes, fittings and receptacles to Mahindra & Mahindra for CNG systems in H1 FY27, while firm Maruti Suzuki orders are expected to support significant capacity utilisation for about two years. Management identified the import-substitution programme as a Greenfuel growth driver.

What CNG components has Lumax Auto Technologies started supplying?

Lumax Auto Technologies has started supplying ferrule-less tubes, fittings and receptacles to Mahindra & Mahindra as part of a whole CNG-system offering. Management said ferrule-less tubes and fittings had been imported by the industry before its local manufacturing initiative, positioning the programme as a localization mechanism within the Greenfuel business.

The product has multiple fitment positions per CNG vehicle. Management said every CNG vehicle uses ferrule-less tubes and fittings, with either three, four or six units depending on the layout. The number of components supplied per vehicle can therefore vary by the original equipment manufacturer, or OEM, and its plumbing configuration.

Management described Lumax Auto Technologies as the first company to localize ferrule-less tubes and fittings in India. It said local manufacture offers OEMs localized pricing and supply advantages, while creating a CNG growth lever for the company. The call did not disclose product revenue, plant capacity, component pricing, output volumes or the start-of-production date.

How do Mahindra and Maruti support the CNG capacity ramp-up?

Mahindra & Mahindra is the disclosed active supply programme, while Maruti Suzuki has firm order wins for ferrule-less tubes and fittings. Management said the combination of Mahindra supply and Maruti business should generate significant utilization of available capacity for “give or take” two years.

The customer relationships are at different stages. Mahindra receives tubes, fittings and receptacles as a CNG-system package, whereas the disclosed Maruti scope is ferrule-less tubes and fittings. Management did not provide the value of the Maruti orders, identify vehicle programmes, state production volumes or specify when the awarded business will enter production.

This two-year capacity comment is a management outlook, not revenue guidance for Greenfuel or Lumax Auto Technologies. It does, however, provide a stated sequence for the programme: supply Mahindra, execute the Maruti awards and then assess expansion to other OEMs. No utilization percentage or incremental capital expenditure was disclosed for the CNG component business.

Is Lumax Auto Technologies supplying CNG components to Hyundai?

Lumax Auto Technologies is engaged with Hyundai and other OEMs on ferrule-less tubes, fittings and certain other CNG parts, but it did not disclose a Hyundai order win or supply start. The call identified Mahindra as the active CNG customer and Maruti as the customer with firm ferrule-less tube and fitting awards.

Management indicated that additional OEM expansion would follow the initial Mahindra and Maruti ramp-up rather than occur simultaneously. Its stated expectation is that those two customers can provide significant capacity utilization for roughly two years, after which it will assess whether the product range can be expanded to others.

The localization proposition rests on two disclosed mechanisms. OEMs can receive locally sourced parts rather than imported ferrule-less tubes and fittings, while Lumax Auto Technologies gains additional CNG content through three, four or six positions per vehicle. The call gave no estimate of OEM cost savings, import substitution value, localization percentage or content value per CNG vehicle.

How does Greenfuel fit Lumax Auto Technologies’ wider growth plan?

Greenfuel is one of the growth drivers named by management alongside Mechatronics and IAC, while Lumax Mannoh was described as a more mature, high-wallet-share business. Management said Greenfuel has a strong order book related to localized ferrule-less tubes and fittings, though it did not quantify that order book in the Q2 and H1 FY27 call.

Mechatronics provides a contrast in the level of disclosed financial detail. Management said the Mechatronics vertical had an order book of Rs 500 crore and could reach revenue of about Rs 800 crore to Rs 1,000 crore by FY31. It supplied no equivalent revenue target for Greenfuel, instead identifying named customers and the approximately two-year utilization outlook as the evidence for the CNG opportunity.

Management also said its internal target is for the consolidated Mechatronics vertical to contribute 25% of its technology-driven initiative in three to four years, with around 75% supported by joint-venture partner design and intellectual property. That target concerns Mechatronics, not Greenfuel, but shows why management separated the CNG localization ramp-up from the longer-term product expansion programme.

Does the CNG programme include non-automotive opportunities?

Lumax Auto Technologies said its current focus is automotive rather than non-automotive applications for Greenfuel or other partner technologies. In response to a question about applications including industrial air conditioning, management said it intends to focus on automotive opportunities and deliver the growth plans already outlined for that market.

The CNG initiative therefore remains tied to vehicle production, OEM supply relationships and the number of ferrule-less tube and fitting positions in a CNG layout. This focus also distinguishes it from the company’s electronics and Mechatronics plans, where management said it is considering a basket of three to five electric-vehicle component products for potential active start of production during 2028 to 2030.

Management said new electronics and Mechatronics products could increase passenger-vehicle content by about 10% to 15% from the current level of roughly Rs 70,000 per vehicle. That content objective was not attributed specifically to ferrule-less CNG tubes and fittings, and management did not link it to a Greenfuel revenue or margin forecast.

Conclusion

Lumax Auto Technologies has progressed from a localization proposition to active CNG-system supply for Mahindra and firm ferrule-less component awards from Maruti. The three, four or six fitment positions per CNG vehicle explain the volume opportunity, but the call did not disclose revenue, margins, plant capacity or the value of either customer programme.

The next disclosed milestone is execution within the roughly two-year period in which management expects Mahindra and Maruti to provide significant capacity utilization. Investors can also watch for any update on Hyundai and other OEM discussions, and for quantified Greenfuel order-book, production-volume or financial disclosures as the CNG business ramps.