Minda Corporation to supply components for Bajaj Chetak

The auto component maker, Minda Corporation today informed the bourses that it has partnered with Bajaj Auto during the recent launch of the Bajaj Chetak to supply it with its products. These are primarily keyless systems consisting of electronics steering column lock, Key FOB, Smart ECU, seat and glove box actuation mechanism and few die casting components.

The company’s management said that its advanced R&D centre - Spark Minda Technical Centre is jointly working with Minda Corporation to bring in various breakthrough technologies and innovative ideas for the market to cater to emerging trends of e-Mobility.

In Q1FY20 the company was carrying an order worth Rs. 1608 crore (including export & new business) giving an healthy revenue visibility for the near term.

The automobile industry is going through structural changes resulting in slowdown in the auto sales. Further, many major auto makers have announced few non-working days for their manufacturing plants. Besides, the government’s impetus for electric vehicle to curb pollution is also impacting the automobile industry.

Due to the shift from fossil fuel to electric vehicles there would be no need for around 80 per cent of existing moving auto components. Going forward, there is an opportunity as well as a challenge in front of auto component makers and only those players with vision and dare to adapt newer technologies are likely to survive.

Meanwhile, the stock of Minda Corporation which opened gap up at Rs. 108 as against previous close of Rs. 99.55 went down later the stock settled for the day at Rs. 100.1 apiece.