Automotive Axles hosted a conference call on Feb 5, 2024. 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 FY25, management expects M&HCV segment to remain flat in terms of number of vehicles. However, it expects tonnage to grow.

Company continues to focus on cost reduction and profit improvement initiatives. Management expects no major impact on margin due to commodity price volatility.

Company is constantly adding new products in its portfolio, which is leading to growth in exports. Company also plans to expand its business with various customers.

Company is looking at remanufacturing of axles to focus on reducing total cost of ownership.

Company is focused on increasing penetration in brakes, without diluting existing margins.

Company aims to outpace the industry growth by increasing market penetration through growth in exports, increasing domestic market share, and introducing new products.

Management emphasized its growth strategy, which is to develop industry-first products and thereby increase content per vehicle.

Increased government spending on public transport, Voluntary Vehicle Scrappage policy, good monsoons, and increased Infrastructure spends by the government are positive triggers for the industry.

Company intends to focus on Industry 4.0 & other digitisation initiatives, along with improvement in conversion and material cost performance.

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