As an Indian car maker lined up $ 5 billion in investment for manufacturing electric vehicles (EV), car component manufacturers try to march one step by increasing capital expenditure.
Car parts makers such as Minda Corporation, Nei Industries, Sona Comstar, Anand Group, Lucas TVS, Rane, JBM Auto, Brakes India, Sansera, JK Fenner, and Lumax have announced plans to expand capacity and create new expertise to utilize new requests To utilize demand that utilizes new skills to utilize new skills to utilize new skills to utilize new skills to utilize new expertise to utilize new skills for the EV section.
ICRA sample studies on 49 additional large car companies concluded that the car component industry is expected to devote around Rs 16,700 Crore at FY2023 for capital expenditure and around RS 20,800 Crore at FY2024.
In that room, the EV project is estimated to be around 25-30 percent of the total investment, the research company said.
We hope that the capex investment by larger supporters will be around 6-6.2 percent of operating income at FY2023. The PLI scheme, which was recently announced, will also contribute to accelerating capex during the medium term in addition to investment by newcomers in the EV segment, “said Vinutana S., Vice President & Ranking Head of Sector Companies, at ICRA Limited.
PLI is short for incentive schemes related to production announced by the government to improve local manufacturing.
Under the PLI scheme for car components, 75 companies plan to invest RS 29,834 Crore over the next five years.
Component makers are charged
Moneycontrol car component makers speak by saying that they see everything from motorbikes and controllers that are built locally to battery management systems, charging and charging systems and remote diagnostics.
Sona Comstar, who made the motor control unit, among others, said that she had identified electrification as an irreversible trend in early 2016. The company had planned capital investment around RS 900 Crore for the next three years to expand capacity. It has an order book RS 18,600 Crore where 62 percent comes from the EV program.
We won the new EV order now with speed accelerated with the total number of orders that duplicate in the past year from 15 to 30 programs,” said Rohit Nanda, head of group financial officials in Sona Comstar.
Uno Etina Group spends RS 400 Crore for the next 5-6 years and will also establish a new factory in North India specifically for the manufacture of special EV products.
Others such as the national engineering industry, bearing makers, invest in new technology and are preparing to add separate production lines to EV in existing and new factories.
Electronic component
Car component makers not only rely on increasing EV demand, but also a surge in the need for electronic components in internal fuel engine vehicles (ICE).
Higher EV penetration will prove to be an opportunity for us. More requests in the EV segment, more push will be placed on electronic content due to premiumization, such as increasing the use of smart keys, digital groups and high voltage cable harness, “said Nikhil Kulkarni, CEO and Head of Business Unit, Spark Minda Green Mobility Minda Green Mobility Green Minda Green PVT. Ltd, a subsidiary of Minda Corporation
Grant Thornton estimates that with upskilling gradually and adoption of the latest technology, domestic component producers are expected to be equivalent to international standards and EV export components.
It is hoped that two-wheeled vehicle companies and additional units are determined to collect $ 1.5-2 billion from the PE (private equity) company which considers that most electric two-wheeled companies are looking for an increase in production capacity and expand their distribution of networks for several years to Front, “said Saket Mehra, partner and leader of the car sector, Grant Thornton Bharat.