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ZF Commercial
Vehicle control systems India hosted a conference call on July 31, 2023. In the
conference call, the company was represented by Mr P Kaniappan – Managing
Director and Mr RS Rajagopal Sastry – Chief Financial Officer.
Key takeaways of the call
Management
expects CV segment to improve on back of improved fleet utilization, higher
replacement demand, government infrastructure spending, E-commerce expansion
and government initiatives to promote electrification and sustainability.
In Q1 FY24, growth
in aftermarket division was driven by good demand in mining area.
Company received
new orders for Driver Assistance Systems (ADAS) and Driver behaviour monitoring
system (DBMS) in Q1 FY24.
Company is
striving to introduce new business and revenue models through e-commerce.
Going forward, company
expects softening of commodity prices, which will in turn further improve its
margins.
Adoption of EVs is gaining momentum,
especially in the bus segment. Stricter safety norms provide the company with a
unique opportunity to work closely with OEMs to penetrate the Indian market and
introduce new technologies for the benefit of the end customers.
As ESC (Electronic Stability Control) is regulated
for buses in India from April, company expects to improve the content per
vehicle.
Company expects
ESC regulation to come in truck segment also, which will further provide
tailwinds to company’s products.
To improve the
collusion mitigation system, the government in planning to implement ADAS
(Advance Driver Assistance System) by 2025, which will further enhance the
productivity of the company.
In Q1 FY24,
exports growth was driven by demand in certain segments like bus compressors
and Air Supply Units for BMW.
Going forward, company
looks forward to Partner with trailer customers for implementing 100% TABS,
penetrating and expansion of Intelligent Trailer Program products and air disc
brakes for trailers.
With improvement
in infrastructure and express highways, the need for higher capacity engines
and higher gear ratio transmission increases which open up opportunities for automated
manual transmission controls in heavy-duty segment.
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