The leading auto component manufacturer in India, Tata Autocomp Systems, expects revenue growth to decelerate to 10-12% in the current fiscal year due to a decline in auto sales. Chairman Arvind Goel, however, thinks that beginning in the upcoming year, demand will rise.
Over the past five years, the company’s consolidated growth rate has varied between 37 and 38 percent. According to Goel, revenue is anticipated to increase from Rs 17,500 crore in FY24 to over Rs 20,000 crore this year.
Speaking at the CII Next Gen Mobility Show in Pune, he said, “This year’s growth has been moderate at 10-12 percent, and we expect to return to peak growth rates of 38-39% after FY25.” With an order book valued at more than Rs 10,000 crore, Goel asserted that it was “all booked” for the next two years of work.
Several electric two- and three-wheeler OEMs, along with major players in the passenger and light commercial vehicle industries, buy automotive components from Tata Autocomp, whose primary client is Tata Motors.
The company also supports the manufacturing of energy storage systems for EV batteries, EV powertrains, engine cooling systems, exhaust systems, radiators, batteries, suspensions, seats, mirror assemblies, stampings, and interior plastics and composites.
It is projected that a significant amount of the company’s growth this year would come from EV-specific components like battery packs and powertrains. According to Goel, the company’s sales and exports of electric vehicles (EVs) would account for more than half of its Rs 20,000 crore in revenue this year, with each segment contributing roughly 25%. The company’s diverse core operations will provide the remaining amount.
In order to take advantage of this growth cycle and determine our future course, he added, “We also plan to invest in new facilities, enhance production capabilities, and localize operations.”
