The global passive keyless entry system for cars is one of the fastest growing segments. Be it for the conventional ICEs or electric vehicles, the market is set to grow at 10-12 percent CAGR every year to around $7 billion in 2033. Marquardt Group, a key player in the passive keyless entry market, is keen about riding on this trend and expanding capacity for the same.
Nearly 80 percent of Marquardt’s sales consist of automotive companies and Tata Motors and M&M are among its key clients. But its offerings are not limited to conventional IC-engine powered vehicles only.
The company, which recently inaugurated its Rs 100 crore global R&D centre in Pune, has nearly 12-15 percent of its sales coming in from EVs. According to Harald Marquardt, Chief Executive Officer, Management Board, Marquardt Group, “the India R&D centre is amongst the fastest growing globally.”
What’s Passive Keyless Entry?
Just to remind our readers, the passive keyless entry, one of the Marquardt Group’s primary business drivers , is an automotive security system. It operates automatically and is dependent on the user’s proximity to the vehicle. In this case the door is unlocked when the user approaches or when the door handle is pulled. Similarly it gets locked when the user walks away. Unlike a regular remote keyless entry system which gets activated through the push of a button, this operates on RFID technique.
Are new offerings in the pipeline?
That said, the component major is keen on capitalising on the emerging trends and doesn’t want to put all its eggs in one basket. That’s perhaps why Marquardt says that though, “Strong growth likely’ in the existing product range, the company is also looking into diversifying and there are “several new products in the pipeline, especially in the electrification space. We see the BMS segment tripling growth year-on-year.”
In fact he goes on to add that they “expect double digit growth and will double manpower in India R&D centre over 3 years from the current 500. I see company clocking double digit sales growth in 2023 and 2024 as well.” So what does that imply for 2022. The CEO says that they “plan to close 2022 with highest-ever turnover” and are on track “to better 2021 performance and see revenue upward of Rs 100 crore.”
Is supply still a problem area?
That said, like most of the auto industry, Macquardt is not entirely out of the woods in terms of supply headwinds but the CEO is confident that the situation, “especially semiconductor supply will improve. I expect the supply dynamics to ease out in the third quarter of next year. We are working closely with top semiconductor plays to ensure a smooth supply situation.”
