ET Now: Tell us of your outlook on the EV space, and what is brewing between Endurance and Ola…
Ramesh Gehaney: EVs are catching up, going by the level of interactions that everybody is having with the EV startups and even the OEM-backed EVs. The intensity of discussions is definitely going up. Ola is likely to make a large positive impact on the industry as far as number of sales is concerned.
We are engaging with them. We, in fact, are engaging with all the OEMs and OEM-backed platforms. I think this is going to make a big change in the coming years. Let us see how it moves up from here.
Based on your order book, what is the current demand scenario like?
The intensification with the OEMs has increased. We have also booked orders. In fact, we have already started supplies to EV segments. The orders that we already have, are likely to mature by the end of this year or early next year.
We are constantly engaging with them to procure or win more orders. Winning new business is a constant endeavour of Endurance, and we will not shy away from taking up all the orders that come our way.
What’s your take on the chip shortage? Will this crisis lead to some invention and renovation?
I cannot say whether it is going to be leading to new invention, but the shortage of wafers is causing a huge disruption in the market. OEMs are losing sales, they are shutting down production across the world because of this shortage.
I think investments into chip manufacturing will now increase across the world. Everybody would like to be self-sufficient on this so they do not lose out on business, so that they do not lose because of dependency on others. Especially at a time when the EV sector is expanding so much, nobody can afford to lose any orders.
I think semiconductors is an issue right now. It is believed that by mid of next year things are going to be improving. But I think a lot of investment is going to come into manufacturing micro semiconductors.
Currently, EV components are not even 5% of your total sales. Can that move to 20-25% by 2025?
Certainly yes, why not. We are actively engaged with all the OEMs on getting EV orders. Since there is a lot of disruption, it is expected that by 2024-25 a much larger number of EV vehicles will be on the roads. We will definitely participate on getting more orders from OEMs.
Motherson Sumi has gained market share from other manufacturers. Can you do the same?
Motherson Sumi is an example. We regard the company very highly. Content per vehicle has been a focus area for everyone. We are also focussing on increasing our content per vehicle, especially on the EV segment.
For example, brake segments and suspension are two segments have not had any impact. We are only getting more and more business on these segments because we are a dominant player. Clutch business or casting business, however, has come down a bit.
But there are other areas where we can get into on EVs. For example, ABS brakes, casting businesses for battery or battery packs, etc. All these things get added for us. We do not lose any content per vehicle, going by the way we have calculated.
How do you see the export front moving? Can India be an exporter in the EV market?
Yes, why not. The OEMs have a strong position in the export market. You must have seen the numbers recently. Exports are growing, although domestic is a bit slower.
We have a large share of business and a greater level of penetration with the OEMs. We also go to the areas or regions where the OEMs go — especially those OEMs that use Endurance products. So, we are also increasing our export revenues to a large extent.
I see absolutely no reason why we will not be adding more regions. See, now the world is the audience for anyone. It is no longer a domestic-alone revenue game. You go picking up new orders across the world and move alongside your OEMs. Wherever they are present, you also are.