How Minda Industries Is Gaining An Edge Over Peers Amid India’s Auto Slowdown

Minda Industries Ltd. is weathering one of the worst auto slowdown to grip India in a decade by tapping into its diverse accessory product mix of two-wheeler switches, telematics, sensor controls, and alloy wheels.

“With the multi-product and multi-customer nature of our company, we have an advantage. Particularly, some of the new models are doing well because everyone wants to try new models during a recession,” Minda Industries' Chairman and Managing Director NK Minda said, adding that close coordination of demand and supply has enabled the auto components maker to control inventory better.

Despite the stress in the industry, the company has not laid off permanent workers, Minda said, highlighting the vital role they will play in turning things around. However, the company had to lay off a few temporary workers, he said.

“We will pass through this period. The auto recession is everywhere, not just in India,” Minda said, adding that India has fewer car owners compared to other parts of the world. “In China, it’s 145 (cars) per 1,000 (people), but we still around 27 per 1,000. The Future is very promising to me. However, at this period, we need to tighten our belt.”

For auto components makers, there is also a big opportunity in terms of an increase in kit value resulting from the introduction of new safety and environment norms, such as the Bharat Stage-VI emission standards, across all segments, Minda said.

These new regulations could boost profitability, he added.

Watch the full interview with MK Minda here: