Rakesh Kher, CEO of Uno Minda’s Aftermarket Division, notes that the availability of EV replacement parts in the aftermarket will not be immediate.
Uno Minda, a prominent supplier of auto parts, recognizes the growing demand for electric vehicles (EVs) but expects a delay in the corresponding aftermarket parts demand. The company foresees a surge in demand for EV products in the next 2-3 years and has already identified these parts for an upcoming launch.
Rakesh Kher, CEO of Uno Minda’s Aftermarket Division, stated in an interview that the aftermarket for EV replacement parts will not be immediate, as the EV market has only gained momentum in the last couple of years. He expects significant demand for EV parts in the next 2-3 years and mentioned that the company is ready to launch these parts soon, though no specific timeframe was provided.
This outlook aligns with Uno Minda securing new lifetime orders worth Rs 250 crore annually from EV manufacturers during Q3FY24, strengthening its position in the sector. The order book includes Rs 200 crore for EV-specific components like off-board chargers, motors, and controllers. The company’s investor presentation also highlighted peak annual order expectations of Rs 1,655 crore for two-wheeler and three-wheeler EV components and Rs 263 crore for passenger vehicle and commercial vehicle EV components. Uno Minda’s EV portfolio includes battery management systems, chargers, cables, control modules, plugs, telematics, and more.
The company’s aftermarket business has seen a five-fold revenue increase over the past eight years, now accounting for 8-9% of the overall group turnover. The aftermarket division’s revenue reached Rs 1,042 crore in FY 2022-23, a 26% increase from the previous year, following the merger of Minda Distribution Services Limited with Uno Minda Limited.
Uno Minda has expanded its aftermarket offerings to include electronics, consumables, and mechanical components for various vehicle segments. The company offers over 25 product lines under the Uno Minda brand and has an extensive network of over 1,400 business partners, 50,000 retailers, and collaborations with over 80,000 registered mechanics and workshops.
Kher also highlighted Uno Minda’s aftermarket export footprint, covering regions such as SAARC, MENA, Europe, ASEAN, and LATAM. He emphasized the company’s resilience in the challenging European market.
Regarding the Do-it-Yourself (DIY) trend in aftermarket sales, Kher mentioned that the company has identified popular products and created DIY videos for items like horns, batteries, bulbs, lights, and indicators. These instructional videos aim to raise awareness about spare parts, addressing this sector’s relatively low consumer awareness.
