Adroit Industries (India)

Propeller-shaft demand is closely linked to vehicles using rear-wheel-drive, four-wheel-drive and heavy-duty drivetrain architectures. India's commercial-vehicle market benefits from infrastructure expenditure, freight movement, e-commerce logistics and improving rural mobility, while the rising preference for SUVs and utility vehicles increases demand for higher-torque drivetrain components. These segments are particularly relevant because electrification penetration remains lower in heavy commercial, off-highway and specialised vehicles than in passenger cars, providing conventional and advanced propeller-shaft suppliers with continued medium-term demand visibility.

The key features are:

• FY26 domestic commercial-vehicle sales grew 12.6%

• Rising SUV / utility-vehicle penetration supports RWD and 4WD drivetrain demand

• Infrastructure, freight and logistics activity increase utilisation and replacement requirements

India has developed a cost-competitive automotive-components ecosystem supported by forging, precision machining, engineering talent and established global OEM relationships. This gives domestic manufacturers an opportunity to participate not only in Indian vehicle production but also in international OEM and aftermarket supply chains. Adroit is already substantially exposed to this theme, with exports representing the overwhelming majority of product revenue and customers spread across North America, Europe, Latin America, the Middle East, Africa and Asia-Pacific.

The key features are:

• Automobile exports grew at approximately 10.0% CAGR during FY21–FY26

• Adroit exported to more than 32 countries in FY26

• Global OEM outsourcing supports Indian suppliers offering competitive cost, quality and engineering capabilities

Propeller shafts have applications beyond passenger automobiles, including commercial vehicles, off-highway equipment, industrial machinery, defence platforms and marine propulsion. This broadens the addressable market and reduces reliance on a single vehicle category. It is particularly important as battery-electric passenger vehicles can use drivetrain architectures requiring fewer traditional propeller-shaft components. Demand from heavy-duty, industrial, defence and marine applications therefore provides a structural diversification opportunity where torque requirements, durability and precision engineering remain critical competitive factors.

The key features are:

• Heavy commercial and off-highway applications remain comparatively less exposed to rapid EV substitution

• Defence, industrial and marine applications create additional high-specification opportunities

• Replacement demand from the installed vehicle and equipment base supports recurring aftermarket consumption

The propeller-shaft industry faces structural risks from electrification, commodity volatility and global trade exposure. EV architectures can reduce the requirement for conventional shafts in some vehicle configurations, requiring suppliers to adapt products toward AWD EVs, lightweight alloys and new driveline designs. Steel and aluminium price movements can affect manufacturing spreads, while stringent OEM validation limits rapid customer diversification. Export-oriented suppliers are additionally exposed to currency movements, freight disruptions, tariffs and changing trade policies, all of which can influence volumes, pricing and customer sourcing decisions.

The key risks are:

• Drivetrain technology transition: rising EV penetration and alternative powertrain layouts may reduce conventional propeller-shaft content in some vehicle categories, requiring continuous engineering and product-development investment

• Raw-material and pricing volatility: steel, alloy and aluminium price movements can affect production cost and margins, especially where customer price revisions lag changes in input costs

• Trade and competitive pressure: global OEM sourcing decisions, tariffs, freight disruption and competition from domestic and international suppliers can affect export volumes, realisations and contract economics

Policy support for the industry is primarily linked to domestic manufacturing, vehicle production and infrastructure-led demand rather than direct subsidies for conventional propeller shafts. The PLI framework for automobiles and auto components encourages investment in advanced automotive technologies, while Make in India and domestic testing infrastructure support localisation and supplier capability. Demand-side initiatives such as PM Gati Shakti, the National Infrastructure Pipeline and the Vehicle Scrappage Policy support commercial-vehicle replacement and freight activity, while PM E-Drive and earlier FAME programmes encourage next-generation driveline development.

The key policies are:

• PLI / Make in India: the automotive and auto-component PLI framework and broader localisation policies encourage domestic manufacturing, R&D, value addition and investment in advanced, lightweight and EV-compatible driveline components

• Infrastructure and vehicle replacement: PM Gati Shakti, the National Infrastructure Pipeline and the Vehicle Scrappage Policy can support commercial-vehicle demand, logistics activity and fleet replacement, indirectly increasing driveline-component requirements

• Testing and next-generation mobility: NATRAX, ARAI and ICAT support domestic testing and validation, while PM E-Drive / FAME-linked electrification creates opportunities for specialised AWD EV and next-generation driveshaft designs