Due to a decrease in auto sales, Tata Autocomp Systems, the top auto component manufacturer in India, anticipates revenue growth to slow to 10-12% in the current fiscal year. However, Chairman Arvind Goel believes that demand will increase starting in the next year.
The company’s consolidated growth rate has fluctuated between 37 and 38 percent over the last five years. Revenue is expected to reach about Rs 20,000 crore this year, up from Rs 17,500 crore in FY24, according to Goel.
“This year’s growth has been moderate at 10-12 percent, we expect to return to peak growth rates of 38-39% after FY25,” he stated while speaking at the CII Next Gen Mobility Show in Pune. Goel claimed to be “all booked” for the upcoming two years of work, with an order book worth over Rs 10,000 crore.
Major players in the passenger and light commercial vehicle industries, as well as a variety of electric two- and three-wheeler OEMs, purchase automotive components from Tata Autocomp, whose main customer is Tata Motors.
Additionally, the company supports the production of EV powertrains, EV battery energy storage systems, engine cooling systems, radiators, exhaust systems, batteries, stampings, suspensions, seats, mirror assemblies, and interior plastics and composites.
It is anticipated that EV-specific parts like battery packs and powertrains would account for a substantial portion of the company’s growth this year. According to Goel, over half of the company’s Rs 20,000 crore in income this year would come from the sales and exports of electric vehicles (EVs), with each sector contributing about 25%. The other portion will come from the company’s varied core operations.
“We also intend to invest in new facilities, improve production capabilities, and localise operations to capitalise on this growth cycle and shape our future direction,” he stated.
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