With the parts industry looking to invest $2 billion to $3 billion over the next two years, most ancillary manufacturers say EV parts account for a significant percentage of their orders.
Multinationals such as Fiat’s parent company Sterantis are looking to source more components from India to support their EV programs. Carlos Tavares, Group CEO of Stellantis, said during a recent visit to India that the company is open to discussions with component manufacturers and ready to localize its EV work, given India’s low-cost supplier base. said. Other companies such as Renault and Daimler may also consider sourcing more EV parts from India.
This follows a visible shift towards electric mobility in both the two-wheeler and three-wheeler industries. By 2030, nearly the entire three-wheeler industry and nearly 80% of the two-wheeler industry could be electrified. The rate of change in the passenger vehicle (PV) and commercial vehicle (CV) sectors is slower, with 10-15% of PV and about 10% of CV expected to be electric by 2030.
Automotive systems and components maker Sona Comstar said its revenue share from battery electric vehicles increased from 21% in the first half of FY2022 to 25% in the first half of FY2023. “We continue to rack up EV orders and now he has 37 EV programs out of 23 customers,” said Vivek Singh, M.D., Sona Comstar. Previously, propulsion motors and controllers were used in electric motorcycles and tricycles. Now these are also used in electric light commercial vehicles (LCVs) and in FY2016 he expects revenues from EVs to increase to 45%, Singh added.
Companies such as Uno Minda foresaw this trend and began working on EV-specific products such as smart plugs, DC converters, chargers, charging cables and vehicle warning systems. “To get to market faster, we signed a joint venture with German manufacturer Friwo to help us add board chargers, battery management systems, motor controllers and battery packs to our product portfolio. ,” said Nirmal K Minda, Chairman and MD of Uno Minda. Last month, we signed a joint venture with Buehler Motor of Germany, adding traction motors for electric 2W/3W. Apart from investing 3% of his earnings in his R&D, Uno Minda has invested in his joint venture with Friwo for which he has invested Rs. announced capital investment.
Meanwhile, Flash Electronics, which manufactures automotive products, is on track to achieve more than $120 billion in revenue in 2023. EV contributes 8% to this. “By fiscal 2025, he expects sales to double, with EV-related products to be the main growth driver,” said Sanjeev Vasdev, M.D., Ph.D., Flash. The company plans to invest his Rs 150 crore in his two greenfield manufacturing plants for its EV products in Pune. Also a component of the Polish-based electric vehicle, he is a designer and he has partnered with the Elimen Group and French company Enerstone to manufacture advanced battery management systems that protect lithium-ion cells from aging. I’m here.
Aakash Minda, ED at Minda Corporation, said: “Our strategy is two-pronged. One is to disrupt the market with advanced versions of legacy solutions such as high voltage wiring harnesses, digital clusters and keyless locking systems. Mapping new product requirements for EVs in our development facility.” Minda recently partnered with EVQPoint, an EV solutions provider in Bangalore.
Automotive electronics company Lucas TVS has set up three production lines to produce hub motors and mid-drive motors for electric motorcycles, increasing production to one million units. His KSV Babu, business head of his e-mobility at Lucas TVS, said: It’s still a tiny fraction of the electric pie, but we’re seeing a lot of traction. ”
Meanwhile, the Automotive Parts Manufacturers Association (ACMA), an industry group, has signed off on major original equipment manufacturers in the EV sector, such as Hero MotoCorp, Tata Motors, Ashok Leyland, Hyundai and Volvo Eicher, to help domestic parts manufacturers scale up. Organized several tech shows for original equipment manufacturers (OEMs). ACMA Executive Director Vinnie Mehta said: A study by ACMA and the Association of Indian Automobile Manufacturers revealed that there is a $20 billion investment opportunity for him in localizing electrical components over the next five years.
Multinational companies are also increasing their exposure to electrical components. Vitesco Technologies, Continental’s powertrain business, has signed agreements with a number of automotive OEMs to supply integrated electric axle drive systems for passenger cars and LCVs. Also, exposure to ICE (internal combustion engine) vehicles has decreased. Prashanth Doreswamy, President and CEO of Continental India, said:
This change is driven by policies such as schemes to encourage the introduction and production of electric vehicles and incentive schemes linked to production. This could make India an attractive alternative source for high-end auto parts around the world in the next five years.