Vivek Chaand Sehgal, Auto News, ET Auto

“The car markers need to move more and more to the EV side. We are seeing that happening and are absolutely prepared for it and ready to go in commercial vehicles also,” says Vivek Chaand Sehgal, Chairman, Motherson Sumi Wiring.

How has the demand been across the key regions and how much did the semiconductor shortage impact your numbers in Q1? Are you seeing the pressures easing?
Definitely April and May were a bit on the weaker side but June had worked up very well and in India, car makers are now better equipped to handle the semiconductor related issues. I think the following quarters could be better. Robust demand already exists and so next quarter should be looking up.

What about the China-Taiwan issue? China has decided not to let the Taiwan import natural sand. Why I am asking you this is because sand is an important ingredient for semiconductors and that means the problem in the auto sector will start again.
These are political issues. We have to keep looking at it and observing it but I do not think there will be that much of an impact. By September, the chip issue should be sorted out reasonably. Production is happening all over the world and not necessarily in Taiwan only, though the majority comes from there. The automotive side is more global now.

What is your outlook on margins which have improved this quarter to 12%, do you think that we can see your margins building up from the current 12% and increasing further, expanding further?
Definitely it is going to look better because I think new plants are coming up. A lot of new models are coming into India and that augurs very well for our company and I think the semiconductor this thing also is reasonably getting sorted out so I think this quarter should be slightly better if not quite better.

How has the EV order book shaped up and what is the outlook on the EV front?
We have just started our new plant which is going to provide for EV components. The car markers need to move more and more to the EV side. We are seeing that happening and are absolutely prepared for it and ready to go in commercial vehicles also.