Major Indian EV manufacturers to receive powertrains from TEMICO Motor
TEMICO Motor India Pvt Ltd has secured significant powertrain orders from major Indian electric vehicle (EV) manufacturers, according to a statement by its parent company, Teco Electric & Machinery Co (東元電機). As part of a three-year contract, TEMICO will supply 5,000 direct-drive powertrains for 9m and 12m electric buses and 50,000 powertrains for light commercial vehicles, with deliveries set to begin in the first quarter of next year. TEMICO, a joint venture between Teco and Japan’s Mitsui & Co established in 2020, is located in Bengaluru and began trial runs of its EV powertrain production line last November. The company expects to start mass production after obtaining certification from the Bureau of Indian Standards next month.
Teco chairman Morris Li highlighted this order as a significant milestone for Teco in the Indian market, emphasizing the company’s commitment to expanding its operations in India in line with Prime Minister Narendra Modi’s “Make in India” policy. TEMICO aims to become the second company in India capable of producing electric bus powertrains locally, following the expected start of mass production later this year. The Indian electric bus market is poised for substantial growth, with the government planning to replace 800,000 diesel-powered buses with electric ones by 2030. Teco is optimistic about the prospects for its EV powertrain and charging pile business in India, China, and North America, citing stable demand in these markets.
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Editor’s Note: TEMICO Motor India Pvt Ltd, a joint venture between Teco Electric & Machinery Co and Mitsui & Co, has secured significant powertrain orders from major Indian EV manufacturers. With plans to supply 5,000 direct-drive powertrains for electric buses and 50,000 for light commercial vehicles starting early next year, TEMICO aims to bolster its presence in India’s expanding electric vehicle market.
India Human Rights Commission says Foxconn hiring report by Reuters raises discrimination allegations
India’s human rights watchdog, the National Human Rights Commission (NHRC), has requested government officials to investigate allegations of discrimination by Foxconn, following a Reuters investigation that found the major Apple supplier has been rejecting married women from iPhone assembly jobs in the country. The NHRC issued notices to the secretary of Prime Minister Narendra Modi’s labour ministry and the chief secretary of Tamil Nadu, where a major iPhone factory is located, calling for a detailed report within a week. The commission highlighted that if the allegations are true, they raise serious concerns about discrimination against married women and violations of the right to equality and equal opportunity. The issue has sparked widespread debate, with calls from women’s groups, political parties, and Modi’s federal government for a thorough investigation.
The Reuters investigation revealed that Foxconn systematically excluded married women from jobs at its main India iPhone plant, citing family responsibilities, pregnancy, and higher absenteeism as reasons. Although Apple and Foxconn acknowledged lapses in hiring practices in 2022 and stated they had addressed these issues, the discriminatory practices documented by Reuters occurred in 2023 and 2024, which the companies did not address. Foxconn refuted the allegations of employment discrimination, while Apple emphasized its commitment to high standards and monthly audits. Indian law does not prohibit hiring discrimination based on marital status, but both Apple’s and Foxconn’s policies forbid such practices. The NHRC stressed the importance of gender equality as mandated by the Indian constitution and international treaties, urging state authorities to ensure compliance with labour laws.
Editor’s Note: India’s National Human Rights Commission (NHRC) has initiated an investigation into allegations of discrimination against married women by Foxconn at its iPhone assembly plant in Tamil Nadu, following a Reuters report. The commission has called for a detailed report from government officials within a week, expressing concerns over potential violations of equality rights and labor laws.
Taiwan Excellence to present groundbreaking technology at the 2024 Taiwan Expo India
Taiwan Excellence will set up a pavilion at Taiwan Expo India 2024 for the seventh consecutive year, showcasing its pioneering innovations and advanced technology. The expo, scheduled from July 8th to 10th at Bharat Mandapam (Pragati Maidan) in Delhi, aims to increase awareness of Taiwanese smart solutions, providing exposure and networking opportunities for award-winning brands with Indian and global media and buyers. This year’s pavilion, inaugurated by TAITRA chairman James C.F. Huang and Indian dancer Shakti Mohan, will focus on smart healthcare technology for smart home and living, advanced gadgets, ICT, and industrial products. Twenty-four brands, including ADVANTECH, GIGABYTE, MSI, and ZYXEL, will debut groundbreaking products such as the CYBO Run, GIGABYTE’s Z790 AERO G Motherboard, and KANFON’s Maglev Fiber Laser Cutting Machine.
Taiwan Expo, organized by the International Trade Administration MOEA and TAITRA, aims to strengthen ties between India and Taiwan. In 2023, bilateral trade reached $8.2 billion, with Taiwan’s exports to India growing by 13%. Beyond business, Taiwan Excellence is involved in ESG campaigns, such as “Pedal for Progress,” promoting sustainability through a tree plantation drive. It also supports the “Go Green with Taiwan” campaign, offering $20,000 prizes for innovative proposals combining Taiwanese sustainable products with creative solutions. Celebrating its seventh year at the expo, Taiwan Excellence aims to foster collaboration and mutual growth, creating new opportunities for both nations.
Editor’s Note: International Cooperation Center of Taipei Computer Association is also to put up TCA Innovation Pavilion at the Taiwan Expo featuring 6 companies viz., Goldkey Technology, Keypasco, Netio Technologies, Phison Electronics, Ubestream, and, Volktek and have exclusive B2B sessions with NASSCOM and FAIITA member companies from India.
Ola Electric’s IPO debut is imminent, depending on the procedure: Bhavish Aggarwal, MD
Ola Electric is preparing to launch its initial public offering (IPO) later this year, as confirmed by Chairman and Managing Director Bhavish Aggarwal in an interview with CNBC-TV18. The exact timing of the IPO will depend on ongoing processes, with Aggarwal stating, “We are working through these observations and still have a few processes to complete over the next few weeks or months.” In June 2024, the Securities and Exchange Board of India (SEBI) approved Ola Electric’s IPO, which includes a primary issuance of ₹5,500 crore and a secondary sale of ₹1,750 crore, making Ola Electric the first EV startup to receive such clearance from the market regulator. The company, backed by SoftBank and Temasek, filed for a draft red herring prospectus in December 2023 to raise ₹5,500 crore and proposed an offer to sell 95.12 million equity shares at a face value of ₹10.
Aggarwal emphasized that discussions with investors have focused on the company’s growth and scale rather than its valuation, noting significant improvements in gross margins over the past two to three years. He mentioned that investor response has been very encouraging but did not comment on the company’s valuation. Additionally, there have been rumors that Ola Cabs, a related company, might also go public with a $500 million IPO. However, Aggarwal did not provide any details regarding this potential IPO.
Editor’s Note: Ola Electric, led by Chairman and Managing Director Bhavish Aggarwal, is nearing its IPO launch later this year pending procedural completion. With SEBI’s approval and plans for a substantial primary and secondary offering, the EV startup aims to set a precedent in India’s market, buoyed by positive investor interest in its growth trajectory and operational improvements.
June saw a 14% decline in EV sales to 106,081 units, indicating difficulties ahead
Sales of electric vehicles (EVs) in India saw a significant 14 per cent decline in June 2024 compared to May, attributed to changes in government policies and a growing interest in hybrid vehicles. Despite this, June 2024 sales were over 20 per cent higher than the same month last year, when government subsidy adjustments had caused a drop. According to Vahan data from the Ministry of Road Transport and Highways, EV sales in June 2024 fell to 106,081 units from May’s 123,704 units, marking the lowest sales figure of the year. So far in 2024, around 839,545 electric vehicles have been sold, making up about 6.69 per cent of the total 12,541,684 vehicles sold. Factors such as low incentives for electric two-wheelers (e2Ws), high EV prices, and insufficient charging infrastructure have impacted EV sales, according to Preetesh Singh from NRI Consulting & Solutions.
Electric two-wheelers (e2Ws) accounted for 57 per cent of the total EV sales in 2024, indicating their significant influence on overall EV sales. Government subsidy reductions have played a crucial role in the fluctuating sales. The Electric Mobility Promotion Scheme 2024 (EMPS 2024), introduced in April, further cut the subsidy for e2Ws to Rs 10,000 per vehicle and for electric three-wheelers (e3Ws) to Rs 50,000, with incentives set at Rs 5,000 per kilowatt-hour (kWh). Industry executives are concerned that sales growth could be delayed if the government does not extend the EMPS 2024 deadline or introduce the third phase of FAME. An industry player noted that discontinuation of EV incentives could lead to short-term sales declines until the production-linked incentives (PLI) scheme for the automobile sector begins disbursing incentives from April 1, 2025.
Editor’s Note: In June 2024, electric vehicle sales in India saw a notable decline of 14% compared to May, influenced by policy changes and rising interest in hybrid vehicles. Despite this setback, year-on-year sales for June showed a positive growth of over 20%, reflecting ongoing challenges and fluctuations in the EV market amidst regulatory shifts and subsidy adjustments.
India Surges Ahead in Mobile Phone Exports, Catching Up with China and Vietnam
India is making significant strides in mobile phone exports, outpacing China and Vietnam with a remarkable 40.5% increase in FY24. In contrast, China and Vietnam experienced declines of 2.78% and 17.6%, respectively. India’s success is largely attributed to capturing nearly half of the reduction in mobile exports from these countries, reflecting effective strategies to attract supply chain diversification away from China.
The smartphone Production-Linked Incentive (PLI) scheme has been instrumental in this achievement, bolstering domestic manufacturing capabilities. Major players like Apple have scaled up production in India, with key vendors such as Foxconn, Pegatron, and Tata-owned Wistron doubling their production to US$ 14 billion and increasing exports to over US$ 10 billion in FY24. iPhone exports alone account for 65% of India’s US$ 15.6 billion mobile exports, significantly contributing to the country’s broader electronics export sector, which surpassed US$ 29 billion in FY24.
Samsung has also benefited from the PLI scheme, with its mobile phone exports from India reaching approximately US$ 3.5 billion in FY24. This development underscores India’s growing role as a major mobile manufacturing and export hub, driven by global geopolitical dynamics and the need for diversified manufacturing bases.
Editor’s Note: India has surged ahead in mobile phone exports, reporting a remarkable 40.5% increase in FY24, surpassing China and Vietnam in growth. This achievement is largely credited to effective implementation of the smartphone Production-Linked Incentive (PLI) scheme, which has incentivized major manufacturers like Apple and Samsung to ramp up production in the country. With exports totaling US$ 15.6 billion, of which iPhones alone contribute 65%, India is solidifying its position as a significant player in global mobile manufacturing and export markets, benefitting from strategic supply chain diversification away from China.
Ola Electric to Invest $100 Million in Gigafactory for Battery Cell Production
Ola Electric, led by Founder Bhavish Aggarwal, announced a $100 million investment in the initial phase of its Gigafactory dedicated to lithium-ion battery cell production. The investment will establish 1.5 GWh of manufacturing capacity under ‘phase 1A,’ with plans to expand to 5 GWh in phase B. The locally produced battery cells will be incorporated into Ola’s electric scooters by early next year, following the finalization of the production process. Additionally, the company has received certification from the Bureau of Indian Standards (BIS) for these battery cells and plans to supply them to third-party companies, including other electric two-wheeler manufacturers and renewable energy firms.
In parallel, Ola Electric is preparing for its IPO, having recently secured approval from the Securities and Exchange Board of India (SEBI). The company aims to raise Rs 7,250 crore through a combination of a Rs 5,500 crore fresh issue and an offer for sale of Rs 1,750 crore. Ahead of the IPO, Ola Electric raised Rs 410 crore from EvolutionX Debt Capital via non-convertible debentures. Aggarwal emphasized the significant cost benefits of using in-house battery cells, which account for 35-40% of the cost of two-wheeler EVs.
Editor’s Note: Ola Electric, under the leadership of Founder Bhavish Aggarwal, is set to invest $100 million in its Gigafactory for lithium-ion battery cell production, aiming to scale up to 5 GWh capacity after an initial phase of 1.5 GWh. The investment underscores Ola’s commitment to bolstering domestic manufacturing capabilities and reducing costs by integrating locally produced battery cells into its electric scooters and supplying them to other industry players, ahead of its upcoming IPO.
Foxconn to Invest Additional $1.54 Billion in India for Operational Expansion
Taiwanese tech giant and key Apple supplier Foxconn has announced plans to invest an additional $1.54 billion in India to diversify its production away from China. In a filing to the Taiwan Stock Exchange, Foxconn’s Indian subsidiary stated it will allocate around 128 billion rupees for “engaging others to build on owned land” for operational needs. While specific details were not provided, the company promised further announcements once the transaction is confirmed. This move is part of Foxconn’s broader strategy to mitigate the impact of strict Covid policies, industrial unrest, and US-China diplomatic tensions on its China-based operations.
Foxconn, officially known as Hon Hai Precision Industry, is the world’s largest contract electronics manufacturer, assembling devices for numerous companies, including Apple’s iPhones. Chairman Young Liu indicated in an August earnings call that the company saw the potential for several billion dollars of investment in India. In May, Foxconn purchased a large tract of land near Bengaluru for $37 million, adding to its nine production campuses and more than 30 factories in the country. The company plans to expand its operations in India to include critical components for consumer electronics and electric vehicles, enhancing its competitiveness in the global market.
Editor’s Note: Foxconn, a key player in global electronics manufacturing, is poised to invest an additional $1.54 billion in India to expand its operational footprint and diversify production away from China. This investment, aimed at leveraging India’s strategic advantages and reducing dependencies on Chinese facilities amidst global uncertainties, reflects Foxconn’s commitment to long-term growth and resilience in the region. With plans to develop infrastructure and potentially engage in critical component manufacturing, Foxconn aims to strengthen its position in both consumer electronics and emerging sectors like electric vehicles.
Taiwanese ICT Suppliers Eye Relocation to India Amid Growing Collaboration
India is set to become the next major original manufacturing hub, attracting more Taiwanese ICT suppliers to relocate, according to Taiwan External Trade Development Council’s Deputy Executive Director Keven Cheng. Highlighting the potential for collaboration in emerging and critical technologies, Cheng noted that partnerships like the one between Powerchip Semiconductor Manufacturing Corp (PSMC) and Tata Electronics are paving the way for increased Taiwanese investment in India. In February, the Indian government approved the establishment of three semiconductor units, including a significant Rs 91,000 crore project in Dholera, Gujarat, where Tata Electronics will set up a semiconductor fab in collaboration with PSMC. Cheng anticipates that technology transfers between these partners could occur within the next 3-5 years.
Additionally, India and Taiwan signed a migration and mobility agreement in February, facilitating the employment of Indian workers in Taiwan and marking a renewed momentum in bilateral cooperation. Initially, 1,000 Indian workers are expected to move to Taiwan to meet the island’s demand for technical labor. Speaking at an event regarding the 7th edition of the Taiwan Expo 2024, Cheng highlighted the 25.8% growth in trade volume between Taiwan and India from January to May 2024, making India Taiwan’s 14th largest trade partner. The upcoming Taiwan Expo aims to further enhance business opportunities and bilateral trade relations, featuring over 120 companies and showcasing more than 1,000 products from Taiwan.
Editor’s Note: India is emerging as a key destination for Taiwanese ICT suppliers seeking to relocate, buoyed by growing collaboration and strategic partnerships. The approval of semiconductor projects, including a major investment in Gujarat by Tata Electronics and Powerchip Semiconductor Manufacturing Corp, underscores India’s appeal as a manufacturing hub for critical technologies. A recent migration agreement between India and Taiwan further signals strengthening bilateral ties, facilitating the movement of technical labor and enhancing trade relations, as highlighted during the upcoming Taiwan Expo 2024 set to showcase Taiwanese innovation and products.
AI and Green Tech to Propel India’s Growth, Says KPIT MD Kishor Patil
KPIT Technologies MD and CEO Kishor Patil highlighted that AI and green technology will be crucial drivers of India’s growth amidst global disruptions. Despite challenges in the supply chain and the advent of AI, KPIT achieved a 40% growth in fiscal 2023-24, thanks to strategic investments in electrification and autonomous vehicles. The company outperformed the broader market with a 601.72% stock return over three years, compared to Nifty IT’s 27.71%. Patil emphasized the importance of aligning with areas where OEMs are investing, such as operating system architectures and consumer experience enhancements, and leveraging India’s strengths in software to capitalize on AI advancements.
Patil also pointed out that Asia, particularly Japan, Korea, and India, is the fastest-growing region for KPIT. He noted that while China leads in AI for autonomous vehicles, India has opportunities to reduce dependence on China and improve its AI capabilities. Cooperation, especially in the semiconductor sector, is essential, with potential partnerships between Indian design companies and Taiwanese fab firms. He stressed that significant progress in industries like semiconductors and AI would require long-term efforts. Patil, who chairs Nasscom’s engineering research and development council, mentioned a recent memorandum of understanding with a Taiwanese counterpart to enhance collaboration.
Editor’s Note: Kishor Patil, MD and CEO of KPIT Technologies, predicts that AI and green technology will drive India’s economic growth amid global disruptions, citing KPIT’s 40% growth in fiscal 2023-24 fueled by investments in electrification and autonomous vehicles. Highlighting India’s strengths in software and opportunities in AI, Patil emphasizes the importance of strategic partnerships, particularly in semiconductors, to enhance the country’s capabilities and reduce dependence on China. He was speaking at the Taiwan ASEAN India Cooperation Forum organized by the International Cooperation Center of Taipei Computer Association coinciding the COMPUTEX TAIPEI.