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Automotive Product Finder Magazine | We hope for more business in commercial vehicles post Feb 2020
We hope for more business in commercial vehicles post Feb 2020
Automotive slowdown to have short-term effect on metalworking
Auto components: Investments are inevitable
...says Joy Haria, Head - Marketing and New Business, Patel Auto Engineering Works, while sharing his views on the effects of BS VI regulation, slowdown and export trends.
What is the current status of the auto component industry?
The overall production of automakers across categories have seen year-on-year decline, this fiscal. The vehicle production is down. For suppliers, the double digit decline is experienced primarily more in profits than the revenue. Given the slowdown in the domestic market, we have decided to rethink over our reduced future target. The exports have started to see decline, thus the focus inclines towards exports and we are trying to push 50 per cent of the volume through exports to developing nations, where market conditions are similar.
What are the recent trends in component manufacturing,?
We have received orders from many electric vehicle (EV) manufacturers in India. Steel is the major component used in developing the body while other parts are built by aluminium. E-rickshaw manufacturers are booming in India. Components used in the EVs like two-wheelers and three-wheelers are strong on demand. E-rickshaws are comparatively faster. Use of alloys will be more significant with reference to weight. Other trends in the segment are that of carbon fibre. Some components are manufactured using carbon fibre. Steel use will be very well in EVs.
With upcoming BS VI regulations, have you received new business?
We are working closely with many automakers in India. We are currently manufacturing emission control system for one of the established brand of trucks and busses. We have received the design and it was finalised some three months back. We also are in talks with others for similar systems. We hope for more business in commercial vehicles post February 2020. Till then there will be lot of trials and testing.
What is your R&D team currently working on?
We are working with one of the startup to develop tires for e-rickshaws first and then for other electric vehicles. It is a challenge as there are many established tire-makers. Our product will serve as a robust alternative to the tires available in the market. The usp of these tires will be light weight.
What are your exports plans?
One of the major issue here is do manufacturers have their plants built following global standards. If not, it is a high-time to do so. Being a manufacturer, your job dimensions are limitless. We will soon start manufacturing components for European and Bangadeshi automakers. They visited our state-of-the-art manufacturing facility to validate and to inspect our plant. We have recently a provisional go ahead. These manufacturing contracts will be on the new EV segment, car components and e-rickshaws.
Our plans are to build electronics portfolio. Use of electronics will see a growth by 2022. EVs will bring more demand and we will not miss this growth trend in the market. Automakers previously were not that open for taking into consideration a new supplier. With changing market and new technology, situation has changed.
Patel Auto Engineering Works
Auto Component Industry
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