Chennai-based auto component maker Sundaram Brake Linings Ltd expects the growing push for localisation, supply chain diversification and global China+1 sourcing strategies to create significant domestic and international growth opportunities despite near-term macroeconomic uncertainties.
Although India is expected to remain the world’s fastest-growing major economy, risks such as an uncertain monsoon, high energy prices, renewed tariffs and geopolitical conflicts could weigh on growth. While vehicle manufacturers remain optimistic about demand in the first half of the year, concerns persist over the outlook for the second half, the company said.
The company expects the Indian automotive industry to maintain steady growth in FY27, supported by sustained demand for SUVs, light commercial vehicles and improving rural consumption. These trends are well aligned with its portfolio of high-load, low-noise braking solutions.
Sundaram Brake Linings also expects rising freight movement and increasing demand for premium aftermarket products to support growth in its replacement business. The company said it is well positioned to benefit through its focus on long-life friction materials that improve safety and comfort.
The company highlighted emerging opportunities from the global shift towards measuring full-vehicle emissions rather than only tailpipe emissions, saying this would boost demand for reusable and zero-emission products.
It also expects its composite materials business to benefit from lightweighting requirements in automobiles, while supplying composite products to the defence and drone sectors.
During FY26, domestic revenue was driven by an 11 per cent growth in sales to original equipment manufacturers (OEMs), reflecting higher vehicle production. Sales in the domestic independent aftermarket grew 4 per cent, with the company expanding its reach through wholesale distributors and large stockists.