Fuel cell will be a part of the solution, and we have great products that are recognized around the world also in China. So, we see a really big opportunities, but the $100 million hasn’t started to hit the income statement at this point in time.
Amit Dayal: Thank you. And then, for the Euro 6 and Euro 7, the additional revenues coming through those contracts, is that a base case scenario, David or is there upside to those numbers?
David Johnson: Yes, it’s a good question. So, this is how our customer is seeing the market developing. There is a ramp that has been going on for years with respect to LPG products in the marketplace being more and more meaningful. We see this in our delayed OEM business as an example, a different business than the one we’re talking about. But fundamentally, the same phenomena where basically customers are able to – are interested in asking for LPG product, and OEMs are responding, some by having a delayed OEM product, others by having a direct OEM supply where they are installing our parts on – in their factories. So, looking forward, I think it’s a lot of crystal ball gazing as we try to understand where the market will be 2, 3, 4 years out. But what’s very compelling to us is that our customers are committed to high-volume production and next-generation emission standards and the continuation of this product and has chosen us as their supplier.
Amit Dayal: Thank you, David. That’s all I have.
David Johnson: Thanks, Amit.
Operator: The next question comes from Bill Peterson with JPMorgan. Please go ahead.
Mahima Kakani: Hi. This is Mahima Kakani on for Bill Peterson, and thanks so much for taking our questions. Maybe touching on the LPG contract as well, how should we really think about the cadence of revenue generation beginning in 2023 onwards? And is there any additional spend kind of required to help ramp up that production as well?
David Johnson: Yes. Great question, so good to speak with you this morning. Thanks for your question. The spending required – actually, this is largely the case where there is minimal spend requirement. There is a bit of development and validation that we do. There is a bit of augmenting our capacity as the ramp occurs, more in the out years, not in ‘23 or ‘24. But basically our customers come to us with a number of models. And as they increasingly – as they change those models and change the sourcing, and as the provider and Tier 1 supplier for them, the volume grows for us. And so, you kind of see that in the revenue figures we have provided, 38 million over the next two years and then 40 million annually going forward.
That volume progresses over time for us. And then, you have the market dynamics. And so when we get into the out years, there is some capacity we need to put in place in the ‘25, ‘26 timeframe to support that that ramp with the Euro 7 product, but nothing in the near-term.
Mahima Kakani: Got it. That’s really helpful. Thank you. And then how should we think about gross margin trajectory as we move through the year? And what are some of the puts and takes that could really drive it up or maybe potentially do a little bit weaker?
