Automotive Axles hosted a conference call on Aug 4, 2023. In the conference call the company was represented by, Dr N Muthukumar –India Leader: Cummins - Meritor, Mr Nagaraja Gargeshwari – President & Whole Time Director, Automotive Axles and Mr S Ranganathan – Chief Financial Officer, Automotive Axles.

Key takeaways of the call

In FY24, management has projected 3% growth in MHCV Production and 2% in LCV Production.

In Q1 FY24, company’s cost saving initiatives and softening in commodity prices led to improvement in margins.

Company is growing in other segments and its dependency in auto segment is coming down.

Company expects in the long-term defence space will reduce its dependence on automotive space.

Company expects to benefit from increasing sophistication of vehicles (including production of alternative fuel-enabled vehicles), Fast-growing domestic/overseas market, and increase in installed capacity of many OEMs.

Company plans to expand its business with various customers, with the introduction of more innovative products.

Company has many new Products in Pipeline such as- MT 160 Tandem Axle, TLB Solo HR Axle, and 12i Solo Axle etc. These products are designed such that that total cost of ownership for the customer is reduced.

Company expects 80% of Power consumption through renewable energy by 2028.

Company is working closely with its customers using the latest technology solution and e-Axle, to support electric vehicle manufacturing.

Company intends to capitalize on export business opportunities, as OEMs in Europe are looking for low cost manufacturers for sourcing subassemblies. Cummins will help accelerate supply of subsystems to the other countries because of the trust and reliability.

Spending by the government towards public transportation is expected to boost domestic growth.

Company transformed its plant by reorganizing machine layouts and adopting single-piece flow and cell concepts that has enabled it to be more flexible and efficient.

Company incorporated Industry 4.0 technology and the Internet of Things (IoT) into its new axle assembly line.