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    Expect demand to be higher than last year; gearing up for EV opportunity: Minda Industries

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    Expect demand to be higher than last year; gearing up for EV opportunity: Minda Industries

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    Minda Industries’ ED & Group CFO Sunil Bohra said the company is gearing up for EV opportunity and is mainly looking at two and three-wheeler components because these segments would be the first to kick off.

    Auto component maker Minda Industries’ ED & Group CFO Sunil Bohra is of the view that things have started looking good for the industry as COVID-19 related restrictions have started easing. “Indian consumer is a lot more resilient,” he said, adding that during the past year as well, the personal mobility demand was much more than pent-up demand and it sustained till Q3, Q4. This time around, the demand is expected to be a lot more than last year.
    Talking about the electric vehicle opportunity, Bohra said the company is gearing up for that and is mainly looking at two and three-wheeler components because these segments would be the first to kick off. The company has about Rs 7000 of a kit-value for a two-wheeler, which could go to Rs 9000 and from Rs 9000 to Rs 30000 kit-value per vehicle, considering the products that are in the pipeline and in production.
    “The company is banking on EV capability and is gearing up for that opportunity,” he said. As a percentage of revenues, the EV volumes are unlikely to be significant for a year or two, but going forward, they expect that to grow, he said, adding that the existing product portfolio, plus the EV products would give them an opportunity to grow significantly.
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    The company currently is also insulated from the EV transition impact. “Our product profile, barring a couple of businesses like CNG or filters, all the businesses like switching, lighting, casting, seating, etc., irrespective of the mode of energy on which the vehicle runs, are used. So, from that perspective, our existing portfolio is insulated from EV transition,” he added.
    On topline projections, with the assumption that there would not be a third wave, he said, excluding Q1, for the rest of the nine months, revenues would be better than the last nine months. “Our conviction is that we should have significant volume growth, going forward. The company has also announced three capex plans,” said Bohra. In terms of margins, he said most of their contracts have price escalation clause.
    For the full interview, watch video
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