Uno Minda’s passenger vehicle seating systems push adds a new growth engine

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Uno Minda recently announced its entry into passenger vehicle seating systems through its joint venture with Japan’s Tachi-S Co. The company will invest ₹320 crore in a new plant with capacity of around 240,000 units annually.

Initially, this hardly moves the needle for Uno that generated ₹19,658 crore revenue in FY26. Nomura estimates that, assuming an asset turn of about 2.5x, this investment could add around ₹800 crore in revenue, or about 3% of FY28 forecasted revenue.

Passenger vehicle seating is a high-value component category in an automobile. Depending on the vehicle and features offered, seating systems can account for ₹20,000-70,000 of content per vehicle. Features such as ventilation, powered adjustment, lumbar support and integrated safety systems are becoming more common as Indian consumers move towards premium vehicles and SUVs. It should be noted that the JV has already secured an anchor customer order from a leading OEM.

But investors will track if passenger vehicle seating could gain scale similar to Uno’s castings or lighting businesses that contributed 19% and 22%, respectively, to FY26 revenues.. Its capex for FY26 was ₹1,572 crore, and it plans another ₹1,750 crore capex in FY27.

The lighting business remains a key growth driver. The segment’s new two-wheeler lighting order secured in FY26 with peak annual revenue potential of about ₹450 crore is nearly 25% of Uno’s current two-wheeler lighting revenues, and would start production in the second half of FY28 (H2FY28).

Further, Uno’s first electric-vehicle powertrain facility at Khed is scheduled to begin operations in H2FY27. The company has also approved a second plant in Chhatrapati Sambhajinagar for an investment of ₹550 crore to manufacture electric drive units and dedicated hybrid transmissions.

Uno’s sunroof order book now exceeds ₹350 crore of annual potential revenue, while its infotainment business recently secured a new order with an estimated peak annual value of ₹600 crore.

Uno’s shares trade at around 38 times FY28 estimated earnings, as per Bloomberg. Seven out of 11 ongoing projects are expected to either start production or ramp up in FY27.

Motilal Oswal Financial Services expects Uno’s revenue to reach ₹27,591 crore by FY28, aided by rising content per vehicle, premiumization and the ramp-up of new businesses.

Any delay in commissioning or slower-than-expected customer adoption could defer the earnings benefits investors are currently pricing in.

Shubham Dilawari is an equity research professional and financial journalist currently associated with Mint, where he covers markets, companies, and sector trends. He has over two years of combined experience in equity research and financial journalism, which helps him bring practical, real-world insights into his writing.<br><br>He focuses on understanding how businesses work, tracking management commentary, and identifying long-term growth drivers across sectors. His background in stock research and financial analysis allows him to break down earnings, business strategies, and market trends in a clear and easy-to-understand manner.<br><br>Shubham has cleared CFA Level I and holds the NISM Research Analyst certification, reflecting his strong foundation in financial concepts and research practices.<br><br>He believes in keeping financial journalism simple, clear, and useful for readers. His aim is to explain complex financial topics in a way that helps investors and readers make better-informed decisions. He focuses on accuracy, clarity, and relevance in his work.<br><br>Based in India, he closely follows market developments and stays actively engaged with the investing ecosystem.

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