Dear Shareholders,
The year gone by was a difficult year for the global economy, inflation
and the war in Ukraine taking their toll. While these headwinds remain, the economic
scenario could be changing for the better in the current year. IMF in its latest report
says that 2023 could represent a turning point, with pressure on growth bottoming out and
inflation declining. India remains a bright spot. IMF estimates that together with China,
it will account for half of global growth in 2023, versus just a tenth for the US and euro
area combined.
The company operates in two principal markets - India and Europe. They
experienced contrasting fortunes in 2022. In India, the light vehicles segment recorded
highest production levels since 2018, though two wheelers and tractors were a bit
sluggish. Light vehicles production in Europe fell for the third straight year. The war in
Ukraine resulted in electricity prices in Europe rising to unprecedented levels. Battery
Electric Vehicles (EVs) continued to become more mainstream in both markets, with Europe
experiencing a rapid increase in penetration levels.
Looking ahead, the demand situation in the Indian automotive market
continues to be optimistic. The company is well prepared to capitalize on these prospects.
In Europe the company will aim to reengineer products and processes to meet the twin
challenges of rising costs in a stagnating market as well as a rapid transition to EVs.
The company's board also made two major decisions last year. The
name of the company has been agreed to be changed to CIE Automotive India Ltd. and the
regulatory process to do so is underway. It has also been decided to divest the German
truck forgings operations. These changes strengthens the company's focus on the India
market and helps it navigate the transition to electric mobility better, especially in
Europe.
The company is in a good position to take advantage of the coming
opportunities while being ready to face up to the challenges thrown up by the volatile,
uncertain, complex & ambiguous (VUCA) business environment we operate in.
Thank you for the trust reposed in us and we assure you that we will
strive harder to meet your expectations.
| Yours Sincerely, |
| SP. Shukla |
| Chairman – Mahindra CIE |