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

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.