Edited excerpts:
Q: After two consecutive years of swift progress within the auto part business’s efficiency, what’s your outlook for 2024?
The previous two years have seen a outstanding transformation within the Indian auto and auto part business. Not solely has the sector witnessed spectacular progress, but it surely has additionally been characterised by a transparent choice for enhanced options and improved consolation. That is evident within the dominance of SUVs and better cc bikes, reflecting evolving client preferences.
Trying forward, 2024 guarantees continued constructive momentum. The 2-wheeler phase, which has lagged behind, is poised for a powerful comeback supported by restoration within the rural market. In the meantime, the passenger car phase is anticipated to take care of its progress trajectory, with some fashions nonetheless experiencing vital ready intervals. It is very important acknowledge that geopolitical uncertainties pose a possible threat of escalating commodity costs and provide chain disruptions. Nonetheless, the business has demonstrated resilience in navigating such challenges up to now, and its gathered expertise could possibly be invaluable in mitigating these potential impacts.
2024 additionally marks a vital yr for India’s electrification journey. These developments current thrilling alternatives for the auto part business. The rising demand for enhanced options, safer and greener mobility, and localization additionally open a brand new chapter with immense potential.
Q: What are the important thing micro and macro indicators that can play an vital function in shaping up the auto part business in 2024?
Whereas India has a place as one of many world’s fastest-growing economies, its motorcar penetration per capita stays considerably decrease in comparison with the worldwide common. Nonetheless, this disparity is anticipated to slender steadily, fueled by rising disposable revenue and ushering in a profitable marketplace for the auto business.
Past revenue progress, a number of elements are converging to propel the business ahead. A noticeable shift in client demand in the direction of SUVs, electrical automobiles (EVs), and superior driver-assistance methods (ADAS) is anticipated to considerably affect the business panorama.
The federal government’s dedication to selling sustainable mobility by means of coverage initiatives and elevated infrastructure spending, the “Make in India” and “Atmanirbhar Bharat” applications, coupled with the worldwide pattern of provide chain realignment, place the Indian auto business for enhanced competitiveness throughout the international market.
The anticipated peak in rates of interest, doubtlessly adopted by cuts within the latter half of the yr, may additional stimulate client demand.
Q: What’s your view on the readiness of the part business for the shift in the direction of adoption of a number of gas applied sciences and electrical automobiles (EVs) in 2024?
The Indian auto part business is actively embracing the transition in the direction of electrical automobiles (EVs) and different various gas applied sciences. A number of strategic expertise tie-ups have been established, aiming to reinforce technical capabilities. In addition to, incumbent auto part gamers, new gamers and startups have additionally entered into EV part manufacturing. The Indian authorities’s “Make in India” and “PLI (Manufacturing Linked Incentive)” schemes purpose to incentivize native manufacturing of key EV elements, doubtlessly making a stronger home provide chain.
Nonetheless, continued efforts are wanted to bridge the technological hole, handle the workforce scarcity, and mitigate potential provide chain disruptions. Moreover, specializing in continued collaboration between established gamers and new entrants together with OEM will probably be essential for the business to completely capitalize on the alternatives introduced.
Uno Minda stands out as an early mover on this important shift. Our dedication started with CNG package manufacturing in 2010, adopted by investments in EV R&D in 2017. Immediately, we boast over 10 EV-specific elements and methods manufactured in our not too long ago commissioned greenfield EV vegetation.
Q: What would be the key applied sciences that can form the subsequent decade of the auto part business?
As Uno Minda gazes towards the subsequent decade, we envision a future outlined by technological developments, specializing in the PACE (Personalization, Autonomous, Related, and Electrical) megatrends which can be reshaping the automotive panorama.
As EVs are gaining traction, developments in battery expertise, fast-charging infrastructure, and elevated vary are redefining the panorama of vehicles. Providing a clear various to conventional gas, hydrogen gas cells are additionally gaining consideration resulting from their zero-emission properties and potential for long-range driving.
Synthetic intelligence (AI) and machine studying (ML) will play a vital function in growing autonomous driving functionalities. Integrating elements with IoT will result in real-time knowledge assortment, enabling condition-based monitoring and proactive upkeep. It will enhance effectivity and scale back downtime for automobiles. AR expertise enhances the driving expertise by offering real-time navigation, alerts, and knowledge on windshields or heads-up shows.
Superior driver-assistance methods (ADAS) methods will proceed to evolve, incorporating options like automated emergency braking, lane departure warning, and adaptive cruise management. Automobiles outfitted with AI, LiDAR, and superior sensors are poised to revolutionize transportation, enhancing security and effectivity whereas decreasing accidents.
Additive manufacturing strategies facilitate fast prototyping and customization. Light-weight supplies like carbon fiber composites and aluminum alloys enhance gas effectivity and car efficiency whereas sustaining structural integrity.
Q: Do you assume the Indian auto part business has the potential to develop into a worldwide manufacturing hub and play an vital function within the international worth chain?
The Indian auto part business holds immense potential to emerge as a worldwide manufacturing hub and contribute considerably to the worldwide worth chain. Uno Minda believes the business is already heading in the right direction, evidenced by the exports exceeding USD 20 billion in calendar yr 2023, elevated R&D funding with a number of overseas corporations establishing expertise facilities in India.
Key elements driving India’s rise embrace strong home market, price competitiveness, technological development, supportive authorities insurance policies and a big pool of expert engineers and technicians.
By leveraging these strengths and fostering a collaborative atmosphere, India’s auto part business is poised to develop into a significant power within the international panorama.
Q: What are the important thing elements that work in favor of India and what limitations do we’ve as a rustic?
At Uno Minda, we imagine that India’s demographic dividend is a significant asset, with a younger and vibrant inhabitants that’s pushed by an entrepreneurial spirit and a thirst for data. Digitalization can also be quickly gaining floor in India, with varied sectors, comparable to e-commerce and fintech, embracing expertise. This shift not solely fosters monetary inclusion but additionally improves service supply and supplies entry to international markets.
Notably, India’s startup ecosystem is on the rise, fueled by the risk-taking tradition of its younger minds. The give attention to sustainability is growing throughout industries, paving the best way for a greener future. Nonetheless, there nonetheless exist gaps in infrastructure that have to be addressed, significantly in logistics and connectivity, to facilitate environment friendly useful resource allocation. Steady upskilling and reskilling applications are important for our progress.
By leveraging our strengths, embracing collaboration, and specializing in inclusive progress, India can overcome these challenges and unlock its true potential.
Q: What’s your imaginative and prescient for 2030 for the auto part business?
Waiting for 2030, a strong confluence of sustainability, connectivity, and synthetic intelligence (AI) will propel a dramatic transformation throughout the auto part business. India is uniquely positioned to capitalize on this shift, with the potential to not solely obtain self-sufficiency but additionally emerge as a significant international exporter. That is pushed by a rising pattern of worldwide corporations recognizing India as a strategic hub for each manufacturing and cutting-edge R&D.
To completely understand this potential, a give attention to sustainable practices, seamless integration with linked applied sciences, and strategic funding in AI analysis will probably be paramount.
