Uno Minda is targeting exports to account for 20-25% of its sales over time, up from around 14% currently, even as the automotive component maker continues to invest in additional capacity to serve India’s growing vehicle market.
Speaking to Autocar Professional at the 66th ACMA Annual Convention, Uno Minda Chairman and Managing Director Nirmal Minda said the company sees opportunities to expand its global business, but its export strategy will have to be balanced against the growth opportunity in India.
“Our sales are 14% to global customers. Our target is to reach 20-25% over a period of time because India will also grow. I can’t say that we will be at 50% exports,” Minda said.
He pointed out that vehicle production in mature markets such as Europe, Japan and the US is not growing significantly, which means Indian suppliers will increasingly have to win business from existing suppliers rather than rely solely on market expansion.
Minda also highlighted the changing nature of localisation in India. The earlier phase, he said, was largely driven by ‘build-to-print’ manufacturing, where suppliers produced components based on drawings and specifications provided by customers.
The next phase will be more challenging as vehicles are increasingly designed and developed in India. Suppliers will have to participate from the proof-of-concept stage, requiring stronger R&D and engineering capabilities.
Minda identified R&D and engineering, manufacturing engineering including AI and automation, and a stronger supply chain as the three key pillars for deeper localisation.
He added that India must particularly strengthen its Tier-2 and Tier-3 ecosystem, noting that several components at these levels continue to be imported.
Watch the full conversation with Nirmal Minda, where he discusses Uno Minda’s export ambitions, capacity expansion, deeper localisation and what Indian component suppliers need to do to compete globally.