"The availability of EV replacement parts in the aftermarket won't be immediate," says Rakesh Kher, CEO of Uno Minda's Aftermarket Division.
06 Mar 2024 | 8157 Views | By Shahkar Abidi
Uno Minda, a leading auto parts supplier, acknowledges the recent surge in electric vehicle (EV) demand but anticipates a delayed need for corresponding aftermarket parts. While the company expects EV products to drive demand within the next 2-3 years, it has already identified these parts and is prepared for a near-future ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Uno Minda, a leading auto parts supplier, acknowledges the recent surge in electric vehicle (EV) demand but anticipates a delayed need for corresponding aftermarket parts. While the company expects EV products to drive demand within the next 2-3 years, it has already identified these parts and is prepared for a near-future launch.
"The availability of EV replacement parts in the aftermarket won't be immediate," said Rakesh Kher, CEO of Uno Minda's Aftermarket Division, in an interview with Autocar Professional. "The EV momentum has picked up pace only in the last couple of years."
Kher anticipates a significant demand for EV parts within the next 2–3 years. "We have already identified these parts and will be launching them in the near future," he added, without specifying a timeframe.
Kher's comments should be seen in context with Uno Minda securing new lifetime orders worth Rs 250 crore annually, from electric vehicle (EV) manufacturers during Q3FY24, further solidifying its position in the burgeoning sector. The order book, disclosed in the company's investor presentation, comprises Rs 200 crore for EV-specific components such as off-board chargers, motors, and controllers. The company's investor presentation revealed even higher peak annual order expectations. For two-wheeler and three-wheeler EV-specific components, the figure stands at Rs 1,655 crore. The picture is similar in the passenger vehicle and commercial vehicle segments, with EV-specific components garnering Rs 263 crore in peak annual orders. Uno Minda boasts a comprehensive EV portfolio, encompassing battery management systems, chargers, cables, control modules, plugs, telematics, and more.
Increasing share of aftermarkets
Uno Minda's aftermarket business is firing on all cylinders, achieving a five-fold increase in revenue over the past eight years. This segment, now contributing 8–9% of the company's overall group turnover, recently surpassed the Rs 1,000 crore mark for the first time, registering Rs 1,042 crore in FY 2022–23, a 26% year-over-year jump.
This growth follows the strategic merger of Minda Distribution Services Limited with Uno Minda Limited, consolidating the aftermarket division under one roof. Previously, the segment accounted for only 5–6% of total revenues.
Uno Minda has diversified its aftermarket offerings to include electronics, consumables, and mechanical components across passenger vehicles, commercial vehicles, tractors, and off-road segments. The company boasts over 25 product lines under the Uno Minda brand, catering to a wide range of vehicles and minimizing reliance on traded items through its focus on in-house manufacturing.
As per the company, switches, horns, lighting systems, batteries, filters, indicators, bulbs, rearview mirrors, braking systems, shock absorbers, and accessories are among the key components offered through Uno Minda's extensive network of over 1,400 business partners, 50,000 retailers, and collaborations with over 80,000 registered mechanics and workshops.
Kher highlighted that Uno Minda's aftermarket export footprint extends beyond its domestic reach, encompassing five key regions: SAARC, MENA, Europe, ASEAN, and LATAM. The company enjoys a decade-long presence in SAARC, while its other regional ventures are more recent additions. Notably, he emphasised the company's resilience in the challenging European market, despite the headwinds faced by many auto exporters in the region.
DIY strategy working well in aftermarket sales
Talking about the emergence of the Do-it-Yourself (DIY) trend picking up in aftermarket sales, especially amongst the younger generation of customers, Kher highlighted that his company has identified the types of products that are popular and has created several DIY videos on the same. He explained that replacing items like horns, batteries, bulbs, lights, or indicators can now be easily done in under 5–10 minutes with the company's instructional videos. "Our goal is to raise awareness about spare parts, as it's a sector with relatively low consumer awareness," Kher concluded.