The investment being made this fiscal is part of the Rs 3600 crore earmarked by the $ 3 billion Group to fortify its capabilities in developing and manufacturing advanced auto parts over a period of five years to FY25.
Gabriel India, the listed arm, has a market share of 35% in this high-growth segment, compared to its overall market share of 23% in the PV space. Mahendra Goyal, ANAND Chief Executive Officer, told ET, “Most of our Group companies today are supplying components for SUVs, sales of which have grown rapidly in the last few years. We are supplying high-end electronic power steering systems and electronic stability control systems for braking from Mando ANAND India for SUVs, and all types of shock absorbers for SUVs through Gabriel.”
Dana Anand is also seeing increased sales of drive shafts and axles, which are primarily used in SUVs. Meanwhile, MAHLE ANAND Thermal Systems is supplying e-compressors and PTC heaters specifically designed for new generation of e-SUVs and other e-platforms, he informed.
With this, as much as 35% of ANAND’s revenues have started coming in from SUVs now, up from 20% five years back, Goyal added. The Group additionally registers about 6% of its revenues from the electric vehicle parts’ manufacturing verticals, serving both electric four and two-wheelers segments, currently.
Despite the stagnant demand for electric cars, Goyal is confident of the momentum picking up. “EVs are bound to happen. We are investing both in capability and capacity for EV components. Electric two-wheelers will grow faster than cars in the country. But overall that is the direction the industry is headed in.”Overall, demand outlook for automobiles in the country is positive, Goyal said, despite the slowdown being witnessed currently. Goyal informed, “Demand has slowed down due to several factors at the start of the fiscal year: Severe heatwaves, general elections, delayed monsoons made consumers defer purchases. But there is no specific reason as to why it should not pick up. Everyone here wants to buy a car; it is an aspirational product. Good monsoons have a rub-off not only on the agricultural economy but also on consumer sentiments in the broader market. Sales should pick up in the festive period and also remain steady during the wedding season in November.”Over the last couple of years, Anand Group has added a slew of new products to cash in on the imminent shift to electric in the automotive industry. These include liquid management module (OGA), water jacket, lean module covers for battery packs, cover integrated e-system, fuel stack covers, exhaust system for fuel cells, air cleaner and humidifier for fuel cells, for EVs.
/cdn.vox-cdn.com/uploads/chorus_asset/file/24830575/canoo_van_photo.jpeg?w=150&resize=150,150&ssl=1 "All of Canoo’s employees are reportedly on a ‘mandatory unpaid break’")
