Mahindra CIE, a subsidiary of Spain’s CIE Automotive, remains bullish on its operations in India, and expects it to grow at about 10 percent ahead of the industry average.
Vikas Sinha, Senior Vice President – Strategy, M&A, Mahindra CIE shared the Q3 CY22 results on Tuesday. “We want to beat the market by 10 percent. Earlier the target was anywhere in the 5-10 percent range,” he said.
Mahindra CIE’s management appears excited by several new product launches from its existing customers, including Mahindra & Mahindra, Tata Motors and Maruti Suzuki, which have a strong product pipeline for the coming quarters. . Similarly, companies like Royal Enfield and others are driving demand in the two-wheeler segment. On the other hand, the tractor segment, which is currently in relative decline, is expected to recover due to a good monsoon.
The company is revising its export strategy from India, which currently accounts for 12-13 percent of total revenues. Initially, the company plans to increase this to around 20 percent over the next three to four years. However, favorable demand in the domestic market has caused a hiatus in export plans, as the company prioritized fulfilling orders from existing customers in India before considering expanding exports.
Mahindra CIE supplies forging, casting, gear/machining, magnetic products and composites to several leading OEMs including M&M, Bajaj Auto, Maruti Suzuki, Tata Motors and Hero MotoCorp. In the European market, the company provides technologies such as car forgings (Spain, Lithuania), heavy truck forgings (Germany) and gears/machining (Italy) to companies such as Renault, Volkswagen, Ford, JLR, BMW, Daimler, MAN. Scania, DAF, Renault Cat, Eaton and CNH.
Not only this, Mahindra continues to expand its technological capability besides adding CIE capabilities and modernizing existing plant capabilities. These are in line with its long-term goals and preparations for future challenges.
In 2021, the company acquired Aurangabad Electricals (AEL) and its aluminum die-casting technology that will help the company move into the niche areas of lightweight and electric vehicles. In addition, the company is in the process of developing specific aluminum forging innovations that can be used to produce suspension and chassis components for battery electric vehicles and ICE vehicles.
Observing the business situation in its European markets, Mahindra CIE CEO Ander Arenaza Alvarez said that although energy and raw material prices have increased in the backdrop of the Ukraine-Russia war, they are still doing business. do not anticipate any continuity risk. Impact on margins “Demand is still strong, and we are meeting our order book,” Alvarez said.
American Excel names Mahindra CIE among its top global suppliers.