CIE Automotive banks on India as Europe business falters

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Subscribe to enjoy similar stories. CIE Automotive India Ltd is struggling with a slowdown in its Europe business, which is adding pressure to overall profitability. Consolidated Ebitda margin fell 43 basis points year-on-year to 14.2% in the December quarter (Q4CY24).

Ebitda thus declined 8.6% to ₹299 crore at a time when revenue dropped 5.8%. The company follows a January-to-December financial year. Demand continued to slide in Europe, where revenue fell as much as 22%, driven by a 37.5% drop in medium and heavy commercial vehicle volumes and a nearly 10% decline in light vehicle sales.

Stricter emission norms, policy uncertainty around electric vehicles (EVs), and production cuts by original equipment manufacturers have worsened the slowdown. Metalcastello, CIE’s European subsidiary, has been hit particularly hard, with monthly revenue run rates shrinking from €6-6.5 million to €4 million. Also read: As price advantage peters out for Nalco, can new capacity bring comfort? Cost-cutting measures—including a reduction in the temporary workforce—have been implemented to aid profitability.

Still, the Europe business margin was lower than expected at 15%. With EV adoption lagging earlier projections, CIE expects a meaningful turnaround only after the second half of calendar year 2025 as new orders translate into revenue. Meanwhile, CIE’s India operations have been steady, with revenue rising 2% in Q4CY24.

The company’s focus on higher-margin orders under AEL and Billforge is expected to drive stronger growth in 2025. Unlike its European counterpart, CIE’s India business has limited exposure to internal combustion engine components, positioning it well for an eventual transition to EVs. Also read: Federal Bank's new CEO has