KPIT and 6 stocks to benefit as Govt makes ADAS and DDAWS mandatory in 2027

Synopsis: India’s 2027 mandate making ADAS and DDAWS compulsory in medium and heavy commercial vehicles is set to drive strong demand for safety software, sensors, electronics, and mapping solutions, benefiting select auto-tech and component companies aligned with this transition.

India’s push to mandate advanced safety systems such as AEBS, LDWS, and DDAWS from 2027 marks a turning point for the commercial vehicle industry. While OEMs face higher integration requirements, the regulation creates long-term opportunities for companies involved in automotive software, electronics, ADAS hardware, driver interfaces, and high-definition mapping, positioning them at the centre of the next safety-led upgrade cycle.

About the Mandate 

The Ministry of Road Transport & Highways has introduced a phased safety mandate for medium and heavy commercial vehicles M2, M3, N2 & N3 to sharply improve road safety and help India move further toward global standards. According to the new rules, the Vehicle Stability Function (VSF) and Advanced Emergency Braking Systems (AEBS) will be mandated from January 1, 2027, for all new vehicle models, and from October 1, 2027, for existing models. 

Further, LDWS and advanced driver-assistance features such as DDAWS, BSIS, and Moving-Off Information Systems will be mandated from October 2027 for all new models and from January 2028 for all existing models. To incentivise the adoption, ADAS-related sensors and housings have been excluded from vehicle width calculations, thereby allowing the OEMs to integrate safety hardware without breaching dimensional norms.

In fact, the mandate will go a long way in compelling faster integration of sensors, cameras, radars, ECUs, and vehicle software platforms by commercial vehicle OEMs, Tier-1 suppliers, and fleet operators. This might increase the upfront cost of vehicles but is seen to reduce accidents due to rollovers, collisions, and driver fatigue and lower long-term fleet operating and insurance costs.

KPIT Tech ltd 

KPIT is a global technology company with software solutions that will help mobility leapfrog towards an autonomous, clean, smart and connected future. With 13000+ Automobelievers across the globe, specialising in embedded software, AI & digital solutions, KPIT enables customers to accelerate the implementation of next-generation mobility technologies. With development centres in Europe, the USA, Japan, China, Thailand and India. 

With the market cap of Rs 30,978 crore, the shares of the company have closed at Rs 1,130. The 2027 mandate accelerates demand for embedded software, ADAS validation, and vehicle intelligence platforms, where KPIT specialises. OEMs will need large-scale software integration and calibration support. This directly boosts KPIT’s relevance in safety-critical automotive software.

Tata Elxsi ltd 

Tata Elxsi is amongst the world’s leading providers of design and technology services across industries, including automotive, media, communications and healthcare. Tata Elxsi provides integrated services from research and strategy to electronics and mechanical design, software development, validation and deployment, and is supported by a network of design studios, global development centres and offices worldwide. 

With the market cap of Rs 33,566 crore, the shares of the company have closed at Rs 5,388. Mandatory ADAS systems increase demand for vehicle electronics design, software development, and system validation, which are core strengths of Tata Elxsi. OEMs will rely on partners to integrate ADAS into new and existing platforms. This strengthens Tata Elxsi’s role in software-defined vehicles.

Bosch ltd 

Bosch Ltd has a presence across automotive technology, industrial technology, consumer goods and energy and building technology. It manufactures and trades in products such as diesel and gasoline fuel injection systems, automotive aftermarket products, industrial equipment, electrical power tools, security systems and industrial and consumer energy products and solutions.

With the market cap of Rs 1,04,735 crore, the shares of the company have closed at Rs 35,511. Bosch is a key supplier of ADAS hardware like radar, cameras, ECUs, AEBS, and stability systems. The mandate directly increases fitment of Bosch safety solutions in medium and heavy commercial vehicles. Localisation further improves Bosch’s addressable market in India.

UNO Minda ltd 

Uno Minda Ltd is a manufacturer and supplier of automotive solutions and systems to original equipment manufacturers. The company manufactures 25-plus types of components and systems, such as acoustics, switches, lights, alloy wheels, and seats, for vehicles across various segments, including passenger cars, CV, 2W/4W, etc., serving both internal combustion engine (ICE) and electric/hybrid vehicle markets.

With the market cap of Rs 64,661 crore, the shares of the company have closed at Rs 1,120. The mandate raises electronic content per vehicle, benefiting UNO Minda’s sensors, switches, lighting, and electronics portfolio. While not a core ADAS developer, its components support ADAS integration. Increased safety regulations drive higher value per vehicle.

Sterling Tools ltd 

STL manufactures cold-forged, high-tensile fasteners and supplies to all major auto OEMs across PVs, CVs, 2Ws, construction and farm equipment segments. With the market cap of Rs 863 crore, the shares of the company have closed at Rs 238.6. 

Sterling Tools’ partnership with MINIEYE places it directly into ADAS and driver monitoring systems. The 2027 mandate creates assured demand for DDAWS and safety perception solutions. This marks a shift from fasteners to technology-led auto solutions.

Pricol ltd 

Pricol Limited is engaged in the business of manufacturing and selling instrument clusters and other allied automobile components to OEMs and replacement markets. The company is the 2nd-largest instrument cluster manufacturer globally by volume and holds a 55-60% share of the domestic market and 65% in the 2W segment. 

With the market cap of Rs 6,995 crore, the shares of the company have closed at Rs 574. ADAS systems require driver alerts, displays, and warning interfaces, directly feeding into Pricol’s instrument cluster business. The mandate increases the complexity and value of digital cockpits. Pricol benefits as ADAS warnings become standardised.

Genesys International ltd 

Genesys International Corporation Ltd is engaged in providing geographical information services comprising photogrammetry, remote sensing, cartography, data conversion, terrestrial and 3D geo-content, including location navigation mapping and other computer-based related services. 

With the market cap of Rs 1,354 crore, the shares of the company have closed at Rs 324. ADAS systems depend on high-definition and navigation maps for lane-level and situational awareness. The mandate accelerates adoption of HD maps in commercial vehicles. Genesys benefits through long-term OEM contracts linked to ADAS-enabled platforms.

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