
Anand Group eyes growth as EV transition drives auto component demand

Summary
- The group is looking at a seven-fold increase in per-vehicle content value for its thermal systems and braking solutions tailored to EVs, Group CEO Mahendra Goyal said.
Indian auto components maker Anand Group is poised for significant growth this year as the automotive industry accelerates its shift towards electrification, despite headwinds from global market saturation and a lukewarm 2024, a top company official said.
Group chief executive officer Mahendra Goyal emphasized the group’s strong position in the evolving electric vehicle (EV) landscape, citing a six-to-seven-fold increase in per-vehicle content value for its thermal systems and braking solutions tailored to EVs. "The value proposition for EVs is dramatically higher compared to internal combustion engines (ICE)," Goyal said in an interview with Mint. The group has introduced e-compressors and integrated thermal systems to cater to EV-specific needs, he said.
2024: A year of modest growth
The auto industry faced a mixed performance in 2024, with passenger vehicle sales growing by 4-5% and two-wheelers showing marginal improvement. However, commercial vehicles (CVs) experienced a downturn, driven by muted consumer sentiment and pre-election uncertainty.
"Starting July, we observed a drop in passenger car sales and negative sentiments in the CV segment, which continued despite expectations of a post-election recovery," Goyal noted.
Also read | 2025 will be the year of EVs for India, say automakers at Bharat Mobility Expo
He anticipates a brighter 2025, projecting incremental growth across segments. "Passenger vehicles may grow 6-7%, and commercial vehicles should rebound. The overall outlook is stable, without major negative triggers," he added.
Electrification gains momentum
India's EV market remains nascent, with EVs accounting for just over 2% of total passenger vehicle sales compared to a global average of 17-18%. However, the segment is expected to gain traction as automakers launch new models, providing consumers with greater choice.
"(The new launches) should bring momentum to the market, though we don’t expect a dramatic shift in penetration," Goyal explained.
The group has positioned itself to capitalize on this growth by expanding its product portfolio for EVs, including power steering systems, braking solutions, and thermal management systems designed for battery cooling. "These new technologies not only address the unique requirements of EVs but also significantly enhance our content per vehicle," Goyal said.
Export market advantage
While global markets such as Europe, Japan, and Korea face stagnation, India stands to benefit from its relative growth potential. "The saturation in developed markets may channel more investment and opportunities toward India," Goyal noted.
Also read | JSW MG sees 75% sales coming from new energy vehicles over the long term
Additionally, the weakening rupee has boosted Anand Group’s export competitiveness. "The depreciation of the rupee adds to our bottom line. It’s not ideal for the country, but it does enhance our export revenues," he said.
Sunroof success and strategic expansion
Anand Group’s sunroof business has emerged as a standout performer, with capacities already at full utilization. The group is now expanding production to meet rising demand, with Hyundai and Kia among its key customers. Goyal also hinted at exploring partnerships with new automakers.
"While the sunroof market in India is still nascent, its growth trajectory is robust. We’ve made significant strides in establishing a strong foothold," he said, emphasizing the segment’s alignment with the company’s powertrain-agnostic approach.
To further cater to rising demand, the Group is considering setting up a new manufacturing facility near Chennai. The proposed plant would support the group’s expansion across multiple product lines, including sunroofs and other high-value components.
Strategic diversification and inorganic growth
As a diversified player with a presence across nearly the entire auto component spectrum, Anand Group is doubling down on secular, powertrain-agnostic products like seatbelts, airbags, and shock absorbers, which are unaffected by the shift to EVs.
Also read | Hyundai Creta Electric launched at an introductory price of just under ₹18 lakh
“This diversification ensures that we are not overly reliant on any one segment. We’re well-positioned to supply both ICE and EV markets, giving us a strategic edge," Goyal stated.
The company is also exploring inorganic growth opportunities to enhance its product offerings and geographical footprint. "We are evaluating several acquisition prospects, and discussions are in advanced stages," he revealed.
A growth-driven year ahead
Despite challenges in 2024, Anand Group’s robust product innovation and global positioning fuel optimism for the year ahead. Goyal summed up the group’s strategy: "With higher-value products and growing export opportunities, we are set to outperform the industry as it transitions towards electrification."
And read | Luxury automakers make a comeback at Auto Expo 2025 with an electrifying lineup
As the auto industry braces for gradual yet meaningful growth, the Group’s ability to adapt to changing market dynamics will likely cement its role as a key supplier in India’s automotive evolution.