Automatic component cos ride EV wave
CHENNAI: While India is preparing a race for electric vehicles (EV), its main component manufacturers are shifting gears to capture a portion of the EV cake, both at home and abroad. Companies like Rico Auto, Bharat Forge Samvardhana Mother son Group and Pricol have announced that they are acquiring EV technology companies or increasing their component business with an eye on global market .
Of course, the numbers are still small, which is why car component companies are targeting both electric and hybrid vehicles.
Take Bharat Forge, which has already invested 10 million pounds (Rs 90 crore) for a stake in UK-based Tevva Motors and another Rs 30 crore for Tork. It will invest 3-5 million pounds (Rs 27-45 crore) in Tevva.
For Samvardhana Mother son Group EV is a future opportunity. According to chairman Vivek Chaand Sehgal, the company is positioning itself better for both truck and passenger vehicle EVs even though the numbers are still small.
Already 40-50 local component companies are prepared with products and technologies for OEMs (original equipment manufacturers) that manufacture electric vehicles, said the general director of the Association of Automotive Component Manufacturers of India (ACMA), Vinnie Mehta.
Progressive investments will depend on volumes and economies of scale. It is not surprising that Indian component companies focus on exports until domestic volumes increase. Rico Auto has begun to supply components for electric and hybrid vehicles that are manufactured in Germany and France, in addition to India. And exports have been encouraging.
Component manufacturers understand that investing in EV component technology and capacity is a matter of survival. Once the change occurs, a large number of current components will become obsolete. At a recent investor conference, senior Pricol officials announced that when 60% of two-wheelers move to electricity in 2025, the company was analyzing the obsolescence of Rs 200 million from current products.