Larsen & Toubro is committing ₹5,000 crore (about $600 million) to become a Tier-1 supplier in the automotive electronics market, Business Standard reports. The investment marks a strategic bet by India's largest engineering group on the rapid electrification and digitisation of vehicles worldwide.

The company, better known for infrastructure and heavy engineering, plans to design and manufacture electronic control units, power electronics and connected-vehicle components directly for global automakers. The move would shift L&T from its traditional role as a Tier-2 equipment maker into direct contracts with vehicle manufacturers.

Auto electronics is one of the fastest-growing segments in the supply chain, driven by demand for advanced driver assistance systems, infotainment and electric powertrains. L&T aims to capture a share of that market as automakers seek to diversify sourcing beyond traditional electronics hubs.

The ₹5,000 crore outlay will fund manufacturing capacity, research facilities and hiring over several years. L&T already produces precision electronics for defence and industrial customers, giving it a base of engineering talent to expand into automotive-grade products.

What to watch: L&T's first Tier-1 contract wins with major automakers, and whether the investment timeline matches India's broader push to deepen its role in global vehicle supply chains.