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Neolite’s Push Toward Electronics and Localisation

Neolite’s Push Toward Electronics and Localisation

At ACMA Automechanika New Delhi 2026, Rajesh Jain, Managing Director, and Rajesh Soni, Chief Executive Officer at Neolite ZKW Lightings Ltd., share insights on EV-led lighting innovation, localisation, and growth strategies in a conversation with Richa Tyagi.

Q. We would like to begin by understanding how ACMA Automechanika is important for your business and what you are showcasing here.

A. At this platform, we are showcasing our latest products and the technologies we are currently developing, with a strong focus on embedded lighting innovations. It is an important exhibition for us, given our global footprint; we export to over 250 countries and are among India’s leading automotive lighting exporters. The event attracts a significant number of overseas customers, making it highly valuable. While it is primarily aftermarket-focused, we engage with both OEM and aftermarket clients globally as well as in India. It remains a key platform for us to connect, showcase, and expand our reach.

Q. How is the shift toward electric and software-defined vehicles changing the role of automotive lighting, and how is Neolite responding to this transformation?

A. I would say that whether it is an EV or an ICE vehicle, the fundamental role of automotive lighting remains the same. However, when it comes to EVs, there is a clear shift toward higher-end technologies. Lighting systems are becoming more compact, and more advanced variants are being introduced. One of the most notable changes is the growing importance of ambient lighting, which plays a much bigger role in EVs, especially in enhancing the overall user experience. For us, this shift does not change our core function; we continue to serve across all vehicle segments, whether premium or mass-market, domestic or global. However, what is clearly increasing is the number of lighting components within a vehicle. With the integration of more lighting elements, sensors, and electronics, the system complexity and cost also increase. At the same time, this significantly enhances the value proposition of the product.

Q. Speaking about your recently commissioned plant in Pune, how does this expansion strengthen your ability to serve India’s rapidly growing automotive and EV ecosystem?

A. The Pune plant is strategically located, close to key customers in western India, including Tata Motors and MG Motor India, to whom we already supply EV programs. It is a state-of-the-art facility built to Industry 4.0 standards, enabling higher efficiency, better quality, and greater flexibility. The plant currently has a capacity of 2.72 million units annually, with the potential to double. This expansion strengthens our presence in a key automotive hub and enhances our ability to meet growing demand across both automotive and EV segments.

Q. What new capabilities or technologies have been introduced at the Pune facility that set it apart from your other plants?

A. Both our plants, whether it is the older facility in Bahadurgarh or the newer one in Pune, are technologically advanced. The products we manufacture in Pune can also be produced at our older plant, so in that sense, the new facility is an extension that enhances our overall capability to serve a larger customer base. At the same time, the Pune plant incorporates the latest machinery and current-generation technologies, which help us achieve higher quality standards and improved operational efficiency. Our collaborators have also played a significant role, particularly in designing the plant layout. Together, we have incorporated global best practices and brought in the latest developments from across the industry. This includes features such as lean material flow, advanced vertical storage systems, and robotic movement of goods, all of which contribute to greater efficiency, precision, and scalability in our operations.

We have established a dedicated technical centre and R&D facility in Pune, which supports both the Pune plant and our Bahadurgarh operations. Through this centre, we are enhancing not only our design capabilities but also significantly expanding our electronics expertise. Modern lighting systems, such as full-LED lamps, require integrated circuits (ICUs) and other electronic components to function efficiently. As a result, we have extended our role beyond traditional lighting manufacturing and are now developing certain electronic components, including ICUs, in-house. In fact, we have already begun exporting them and have secured some export orders as well.

Q. With recent Free Trade Agreements in place, how do you see their impact on your business, especially in terms of imports and exports?

A. These agreements are expected to bring significant advantages to us. However, the ecosystem is quite interconnected, involving multiple regions such as Austria and others, with the movement of components and products across markets. At the same time, we are actively planning to expand our exports to the U.S. We already supply to OEMs there and are also present in the aftermarket segment. Going forward, we see strong potential to further scale our global footprint through these opportunities.

Q. How do you balance delivering advanced lighting technologies with the cost sensitivity of the Indian aftermarket?

A. This is an ongoing challenge; it never really ends. As technology advances, customer expectations rise, while cost sensitivity remains high. Balancing innovation with affordability is one of the industry’s biggest challenges. It is a continuous journey of improvement, and a cycle every generation will face without a definitive endpoint.

Q. Sustainability and localisation are becoming critical for OEMs. How is Neolite’s India operations aligning with these priorities?

A. Localisation, especially in electronics, is a key focus for us. Components that were once imported are now increasingly being developed in-house, reflecting our shift as automotive lighting becomes more electronics-driven. This also aligns with OEM expectations for higher localisation. On sustainability, nearly 50% of our energy comes from solar, with plans to move toward 100% renewable power. We also follow zero water discharge practices, maintain ISO 14001 certification, and actively invest in employee welfare and CSR initiatives. We continue to strengthen both localisation and sustainability to improve our operational and environmental performance.

Q. From an Indian consumer perspective, how are preferences evolving with the shift toward EVs, sustainability, and software-defined vehicles?

A. Sustainability, as a factor, has not yet become a primary consideration for most Indian consumers. While sustainability itself is important, awareness around whether a manufacturer is a sustainable supplier is still relatively limited among buyers. This may be more developed in markets like Europe, but in India, it is not yet a key purchasing driver. What Indian consumers are clearly looking for, however, is new technology and innovation. There is a growing interest in advanced lighting features, such as dynamic and animated lamps, colourful lighting elements, and more sophisticated designs, many of which are being introduced by newer entrants, including Chinese automotive brands. Consumers want the best and most advanced features available. At the same time, they are highly price-sensitive and are not willing to pay a significant premium for these technologies. This makes India a very unique and challenging market. The expectation is clear: deliver cutting-edge technology, but at a highly competitive price point.

Q. Looking ahead, what is your vision for Neolite over the next five years?

A. Over the next five years, our focus is to increase our market share and establish ourselves as a strong technology-driven player. We aim to become not only technologically advanced but also capable of delivering affordable and increasingly self-reliant solutions. While we will continue to have global support, our goal is to build more in-house capabilities so that we can independently develop and deploy technologies based on market demand. We believe in introducing technologies when the market is ready for them, rather than pushing them prematurely. A key part of our vision is to strengthen our presence in electronics. We are expanding our footprint, including setting up a new plant in Chennai, and building a stronger base in CIS and European markets, where we already have a significant presence. We are also investing in advanced manufacturing capabilities, such as our own SMT (Surface Mount Technology) lines, and are now producing most of our LED modules in-house. Earlier, these were largely outsourced, but we are steadily bringing these capabilities under our own control. Looking ahead, there are several advanced technologies, such as adaptive lighting and sensor-based lighting systems, that are not yet widely seen in the Indian market. Many consumers may not even be fully aware of them today, but these innovations will gradually make their way into India, and we are preparing ourselves to be at the forefront of that transition.

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