Latest news with #NirmalKMinda
Mint
5 days ago
- Automotive
- Mint
Luxury cars not the biggest opportunity UK senses in India after FTA. It's this
The UK government expects bigger inroads of up to $240 million (about ₹2,076 crore) in auto parts and engine exports to India, surpassing luxury cars, after its free-trade agreement with India. The pact opens up the Indian market for companies including GKN Automotive, Cosworth and Ricardo Plc, among others. According to the UK government's assessment, auto component exports will jump by about £190 million or 150%, suggesting that auto parts and engines to be a key winner for Britain as part of the trade deal. While India's auto component industry doesn't see it as a challenge, the UK's assessment suggests a spike in imports from India in the next few years. Tariff cuts, mutual benefits Under the tariff agreement, most auto parts such as brakes, axles, airbags, suspensions, and engine components imported from the UK will see a gradual reduction in duties from 16% to 0% over 10 years. In return, the UK has agreed to waive 8.5% customs duty on Indian auto component imports. Also Read: Twin wins for Indian auto sector in free-trade pact with UK India exported auto parts worth approximately $191.6 million to the UK, while imports stood at around $138.6 million, according to Saket Mehra, Partner at Grant Thornton Bharat. 'With tariffs on components set to be significantly reduced, Indian manufacturers- particularly those supplying to global OEMs (original equipment makers), are well-positioned to expand their footprint in the UK market." India has also opened up the market for luxury car imports from the UK. Total auto imports from the UK stood around $196 million in FY25, as per commerce ministry data. Industry outlook Better market access and competition from British players come at a time when the government is working on a plan to boost exports of the country's component players to better integrate them in global supply chains. According to an industry consultant working with auto component players, there hasn't been any feeling of the FTA having a disruptive impact on the industry. "In conversations with executives at auto component makers, there is no sentiment that the FTA will have a disruptive impact for the Indian players due to opening up of the market," the person said. Also Read: Tata Motors, Tata AutoComp hit a patchy road in FY25 The analysts expect opportunities for British players in components in the clean vehicle value chain, while Indian players are expected to have new opportunities in internal combustion engine (ICE). Strategic fit for India The country's leading auto component body, the Automotive Component Manufacturers Association of India and many component players said the free-trade agreement will create more opportunities for the domestic industry. "The deal is a significant milestone for the Indian auto component sector, unlocking new opportunities in exports, R&D collaboration, and sustainable manufacturing," said Nirmal K Minda, executive chairman at Uno Minda. 'It also aligns seamlessly with India's Make in India vision, strengthening our role in global supply chains." Amit Kalyani, vice-chairman and joint managing director, Bharat Forge Ltd, said, 'Indian manufacturers can now tap into the UK market with greater competitiveness, improving their global footprint." Also Read: E-truck subsides are on their way—but with a rider and the clock ticking The country's $111-billion auto component industry is a trade surplus sector. In financial year 2024-25, auto component exports stood at $22.9 billion against imports of $22.4 billion. Among the largest exported components, the country dominates in engine parts shipped to various markets, including North America and Europe. Over $7 billion worth of exports went to the North American region alone in the last financial year.
Time of India
19-07-2025
- Automotive
- Time of India
Collaborative approach with China will help advance EV growth, says Nirmal Minda
While the 'China plus one' strategy is intended to promote greater levels of self-reliance for India, Uno Minda believes that collaboration, and not decoupling, will be the key to advancing in the electric vehicle (EV) segment. Nirmal K Minda , Executive Chairman, told ETAuto, 'A more collaborative approach is essential particularly in the EV space where we need to learn from China, which is well ahead in terms of technology and scale.' China is currently the world's largest EV market, accounting for nearly two-thirds of total global EV sales, with top brands like BYD leading the way along with newage players like NIO and Xpeng which are disrupting the global EV market. Minda added that it was important that "we understand their advancements alongside focusing on upgrading our own capabilities". Partnership talks Following the Centre's proposal to offer incentives and reduce the country's dependence on China, a recent Reuters report stated that Uno Minda and Mahindra & Mahindra were exploring plans to manufacture rare earth magnets in India. However, the component maker has said while it continues to actively engage with the various stakeholders on evaluating localisation opportunities as part of the effort to steer clear of imports, it would be premature to talk about any such opportunities "without analysing commercial feasibility and preliminary proposals". Uno Minda has made clear that no proposal till date has been put up to the Board of Directors while M&M has, likewise, denied reports of any partnership for rare earth production. Mature verticals Uno Minda, which operates across 26 product lines, said it is working to scale its nascent businesses into mature verticals. 'Whichever product line we have acquired, we want to have at least 30 per cent market share, to be among the top three players,' Minda said. The company has identified the four-wheeler EV segment as a key growth focus. Over the past year, it entered into two technology collaborations in China, Suzhou Inovance Automotive and Starcharge Energy, to strengthen its position in areas such as EV charging infrastructure and advanced electronics. 'We are also working on further technology upgradation, especially in ADAS,' Minda added. For the two-wheeler EV segment, it has two joint ventures with Germany-based firms: Friwo, for full-line e-drive solutions, and Buehler Motor, for EV traction motors. These partnerships aim to localise key electric vehicle components such as electric motors, battery management systems (BMS), and chargers. Uno Minda aims to outpace the industry with a growth target of 1.5x, led by new product additions and deeper penetration across segments. As part of its mid-term strategy, the company is targeting an increase in the contribution of exports and international business to around 20 per cent.
