Auto component major Uno Minda is positioning itself for the next phase of growth by expanding capacity, deepening localisation and increasing its exposure to electronics-led mobility. Electrification and exports are also opening additional growth avenues for Indian manufacturers. In an interaction with Akbar Merchant Financial Express, Sunil Bohra speaks about the company’s capex plans, margin trends, EV exposure, export strategy and how the auto component cycle is shaping up for the next few years.
Q: Uno Minda has 72 manufacturing plants in India and Rs 3,120 crore of expansion projects underway. How are you approaching capacity utilisation and capex?
Our capacity strategy is both demand-led and aligned with emerging automotive technology trends. Most plants are operating at healthy utilisation levels, although a few recently commissioned facilities are still ramping up. These include the four-wheeler alloy wheel plant at Kharkhoda, the two-wheeler alloy wheel expansion at Supa and the four-wheeler lighting plant at Khed City. Currently, 11 capacity expansion projects with a total outlay of about ₹3,120 crore are under execution.
These investments are aligned with premiumisation trends such as alloy wheels, advanced lighting and sunroof systems where technology content per vehicle continues to rise. We are also investing in electrification through a greenfield EV powertrain facility at Khed City, Pune. Additionally, we have acquired around 400 acres of land across key automotive hubs to support future expansion.
Q: Your electronics business sensors, ADAS and controllers has reached about ₹1,300 crore. How is rising electronics content reshaping the business?
For us, revenue from sensors, ADAS and controllers has grown into a nearly ₹1,300 crore segment, reflecting the structural shift toward electronics-led mobility. Most of our portfolio is powertrain-agnostic, allowing us to participate across both ICE and EV platforms. The increasing adoption of connected technologies, safety features and ADAS is driving strong demand for these components.
Q: Exports currently contribute around ₹700 crore or roughly 5% of revenues. How do you see this evolving?
Exports are an important pillar of our long-term growth strategy. Our focus is on innovative, high-quality products delivered at globally competitive costs. At present, exports exceed ₹700 crore annually, contributing about 5% of overall revenues. There is significant headroom to scale this further as global opportunities expand.
Export markets typically offer better margins than domestic markets, largely because of higher value-added products and specialised applications. Currency depreciation can offer short-term gains in export realisations, although these tend to neutralise over time as OEM contracts adjust pricing.
Q: EV-linked revenues from electric two-wheeler OEMs now account for around 12–13% of your domestic two-wheeler business. How significant is electrification for future growth?
In our domestic two-wheeler segment, revenues from electric two-wheeler OEMs account for around 12–13%, which is significantly higher than the current industry EV penetration of around 6–7%. We have already built strong capabilities in e-two-wheeler and e-three-wheeler components. Building on this, we are expanding into passenger vehicle EVs through EV powertrain solutions with Innovance and EV charging solutions through StarCharge.
Q: How has your margin profile evolved amid commodity volatility and pricing pressure from OEMs?
Margins have remained broadly stable despite a dynamic cost environment. Commodity price fluctuations are largely pass-through in nature under our agreements with OEMs, which helps limit the direct impact. Operationally, margins in our legacy businesses have improved due to scale, higher utilisation and operating efficiencies. However, these gains are partly offset by investments in new product lines and plants that are still ramping up. As these facilities stabilise and reach optimal utilisation, they should contribute more meaningfully to margins.
Q: Which vehicle segments currently drive revenues for Uno Minda?
We have a diversified presence across two-wheelers, passenger vehicles, commercial vehicles, three-wheelers and off-road segments. However, two-wheelers and passenger vehicles together account for nearly 90% of our revenues, reflecting both higher production volumes and rising kit value.Demand across segments has remained robust following GST rationalisation in September 2025, supported by higher disposable incomes and softer interest rates. Two-wheelers are benefiting from volume recovery and rural demand, while passenger vehicles continue to see strong traction driven by premiumisation and feature upgrades.
Q: How strong is your pricing power with OEMs amid rising competition?
Competition in the auto component industry has intensified over the years. However, our relationships with OEMs are increasingly centred around the value we deliver through technology, quality, localisation and scale. We are not competing purely on price. Increasing content per vehicle and integrated system solutions strengthen our positioning with customers. Additionally, supply contracts linked to vehicle platforms typically run through the lifecycle of the vehicle programme, which improves demand visibility and production planning.
Q: How do you see the auto component cycle shaping up, particularly with developments such as the India–US trade framework?
The India–US trade framework agreement is a positive development because it provides greater tariff stability and encourages deeper technology collaboration. For us, it creates opportunities to gradually expand exports to the US market. We already export switches, lighting systems and seating components globally. Looking ahead to 2026, the auto component industry should be supported by premiumisation, rising electronics and safety content per vehicle, steady domestic demand and expanding export opportunities. The next phase of growth will increasingly be driven by technology intensity, EV adoption and deeper integration of India into global automotive supply chains.