Weekly News Updates- June 19 – June 25

Indian automobile industry expands by 19% in FY24; India's demand for electronics components expected to exceed $240 billion by 2030; Quanta Computer Inc. considers establishing manufacturing base in India; Taiwan ‘actively considering’ Visa on Arrival for Indians; Indian startups regain lost funding ground in H1 2024: Tracxn Report; Cost of FAME 3: Automakers must meet local sourcing norms or face penalties

Indian automobile industry expands by 19% in FY24 to reach INR 10.22 lakh cr: Report
印度汽車工業在 2024 財年成長 19%,達到 102.2 萬印度盧比

The Indian automobile industry grew by 19 per cent to Rs 10.22 lakh crore in FY24, driven primarily by the robust expansion of the utility and sports utility vehicle (SUV) segments, according to a report by Primus Partners. The industry saw a 10 per cent increase in volume, with the UV and SUV segment experiencing a notable 23 per cent rise in volume and a 16 per cent increase in price, leading to an overall value increase of 39 per cent. This growth was attributed to factors such as a general rise in prices, a shift towards higher segments, hybrid and automatic vehicles, the popularity of sunroofs, and the increasing adoption of electric vehicles (EVs). The report highlights that Indian consumers are favoring higher-priced, feature-rich models, contributing to the industry’s transformation and positioning India as a leader in the global automobile market.

While the UV and SUV segments surged, the passenger vehicle (PV) segment saw a 9 per cent decline in volume, resulting in a 4 per cent drop in value due to slight price increases. In contrast, the two-wheeler segment grew by 10 per cent in volume and 13 per cent in value, making India the top producer of two-wheelers globally with over 20 million units produced last year. The three-wheeler segment and the commercial vehicle segment also saw growth, with volume increases of 16 per cent and 3 per cent and value increases of 24 per cent and 7 per cent, respectively. Despite being third in terms of vehicles registered, behind China and the US, India’s average vehicle price remains lower than that of many advanced countries. However, the value of the Indian automobile industry is growing faster than its volume, underscoring the country’s significant strides in the global market.


小編點評:印度汽車工業在 2024 財年表現出強勁成長,成長了 19%,達到 102.2 億印度盧比。這一成長主要是由多用途車和SUV領域的強勁表現推動的,這些領域的銷售和價值均顯著增長。該行業的轉型以價格更高、功能豐富的車型為主,凸顯了印度在全球汽車市場日益增長的影響力。

India’s demand for electronics components expected to exceed $240 billion by 2030

India needs to transform its electronics sector from an import-dependent, assembly-led model to value-added component manufacturing, as emphasized in a report by the Confederation of Indian Industry (CII). In 2023, the demand for components and sub-assemblies surged to US$45.5 billion to support electronics production worth US$102 billion. This demand is projected to skyrocket to US$240 billion by 2030, supporting an electronics production value of US$500 billion. Key components and sub-assemblies, such as Printed Circuit Board Assemblies (PCBAs), are expected to grow at a robust CAGR of 30%, reaching US$139 billion by 2030. To facilitate this transformation, the report urges the government to implement crucial measures, including a fiscal support scheme, the introduction of SPECS 2.0 (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors), rationalising import tariffs on components like camera modules, and signing Free Trade Agreements (FTAs) with European and African countries. These steps are essential for transitioning India from a mere assembler to a producer of high-value electronic components.

The report identifies five priority components—batteries (lithium-ion), camera modules, mechanicals, displays, and PCBs—as critical areas for India to focus on. These components, which accounted for 43% of the demand in 2022, are expected to grow to US$51.6 billion by 2030. Currently, the production of these components within India is minimal, making the country heavily reliant on imports—a trend that is unsustainable. The PCBA segment, with most of its demand currently met through imports, is another high-potential area for India. This segment is expected to grow by 30%, creating a demand of around US$87.46 billion by 2030. However, India faces significant challenges, including manufacturing costs that are 10-20% higher than those in China, Vietnam, and Mexico, a lack of large domestic manufacturing corporations, a weak domestic design ecosystem, and insufficient raw materials. Policy support is crucial in overcoming these hurdles, which will yield substantial economic benefits, such as creating approximately 280,000 jobs by 2026, increasing domestic value addition, reducing import dependency, and boosting GDP. These strategic changes are vital for positioning India as a global hub for electronics manufacturing.

小編點評:印度電子產業正準備實現變革性成長,預計到 2030 年,零件和子組件的需求將超過 2,400 億美元,支撐產值 5,000 億美元。為了實現這一目標,印度工業聯合會(CII)強調印度需要從依賴進口的模式轉變為PCBA和鋰離子電池等高價值電子元件的製造商。包括財政支持計劃和合理化進口關稅在內的關鍵政策措施對於增強國內製造能力、減少對進口的依賴、促進該產業創造就業機會和經濟成長至關重要。

Quanta Computer Inc. considers establishing manufacturing base in India

Taiwan’s Quanta Computer Inc., the world’s leading contract PC manufacturer known for making laptops and assembling Apple Inc’s watches, announced on Thursday that it is considering establishing a manufacturing base in India. Following the company’s annual investor conference, Quanta vice-chairman C.C. Leung stated that they were gathering materials for evaluation and looking into the possibility of establishing a manufacturing base in India. This consideration comes in the wake of a similar move by Quanta’s rival, Hon Hai Precision Industry Co Ltd, commonly known as Foxconn. Foxconn has announced plans to invest billions of dollars in establishing 10 to 12 facilities in India by 2020. Indian government officials have confirmed that Foxconn is in talks with its main client, Apple, regarding these potential investments.

Under Prime Minister Narendra Modi, India has been striving to rejuvenate its manufacturing sector to boost economic growth and employment. However, it has yet to match China’s prowess, particularly in technology, where most factories are initially expected to be assembly units. Currently, all of Quanta’s manufacturing facilities are located in China.Leung emphasized that Quanta does not have specific investment plans at present and mentioned several considerations for evaluating India’s suitability for manufacturing. In addition to its work with Apple, Quanta manufactures laptops for Hewlett-Packard Co and is the main assembler for the recently released Apple Watch. Despite a predicted 6.2 percent drop in industry-wide shipments by market analysts International Data Corp, Quanta expects its PC shipment volume and revenue contribution from PCs to remain consistent with last year.



Taiwan ‘actively considering’ Visa on Arrival for Indians

Taiwan is “actively considering” extending visa-on-arrival facilities for Indian travelers, announced deputy foreign minister Tien Chung-kwang. He highlighted the growing outbound travel power of Indians as a key factor in this consideration, though discussions with the immigration department are still necessary. Currently, Indian travelers must apply for a visa through the Taipei Economic and Cultural Center in India, a process that takes 2-10 working days. Taiwan sees India as a crucial market to achieve its target of 10 million annual tourists, particularly in the corporate incentive sector.

Despite this, the lack of direct flights between Taiwan and India, suspended during the COVID-19 pandemic, remains a significant challenge. Trust Lin, deputy director-general of Taiwan Tourism Administration, emphasized the need for direct flights to facilitate travel.In 2019, Taiwan welcomed 40,000 Indian tourists, but this number dropped to 32,000 last year. Taiwan aims to attract over 100,000 Indian tourists annually and reach pre-pandemic levels this year. To boost tourism, Taiwan opened the Taiwan Tourism Information Centre in Mumbai and launched the Taiwan Specialist Program to educate Indian travel professionals about Taiwan’s offerings.

India’s business travel market is significant, with business travel spending expected to reach $38 billion this year. Taiwan’s tourism authorities are focusing on the Meetings, Incentives, Conferences, and Exhibitions (MICE) market to attract Indian travelers, underscored by a multi-city roadshow in India earlier this year.



Indian startups regain lost funding ground in H1 2024: Tracxn Report
印度新創公司在 2024 年上半年奪回失去的資金支持:Tracxn 報告

After experiencing declining funding for four consecutive half-year periods since 2022, Indian tech startups have seen an upward trend in the first half (H1) of 2024, according to the India Tech Semi-Annual Funding Report by Tracxn. Indian startups raised $4.1 billion in H1 2024, a 4% increase from $3.96 billion in the second half (H2) of 2023, though this is still 13% lower than the $4.8 billion raised in H1 2023.

India ranked as the fourth-highest-funded country globally in the tech startup landscape, slipping one position as China advanced by raising $6.2 billion. Despite this, India had more funding rounds (540) and first-time-funded companies (168) than China, which had 327 rounds and 159 new companies.

Neha Singh, co-founder of Tracxn, noted the signs of stabilization and an upward trend in funding. She highlighted India’s strong performance in the retail, enterprise applications, and fintech sectors, which are driving economic growth. Bengaluru led in total funds raised, followed by Delhi and Mumbai. The top investors were Accel, Blume Ventures, and Peak XV Partners. Notably, three unicorns emerged in H1 2024, with 33 new additions to the soonicorn club, and the number of IPOs increased to 17 from six in H1 2023. This positive shift underscores the resilience and potential of the Indian tech startup ecosystem, indicating a promising future ahead.


小編點評:印度科技新創企業在 2024 年上半年反彈,籌集了 41 億美元資金,較2023年下半年成長 4%。儘管與 2023 年同期相比略有下降,但印度仍然是全球的重要參與者,融資輪次和新公司進入市場的數量都很大。新獨角獸的出現和首次公開發行的增加預示著印度科技創業生態系統的發展前景光明

Cost of FAME 3: Automakers must meet local sourcing norms or face penalties
FAME 3 的成本:汽車製造商必須滿足當地採購規範,否則將面臨處罰

Automakers applying for subsidies under the third edition of the Centre’s flagship incentive scheme for electric vehicles, Faster Adoption and Manufacturing of Electric Vehicles (FAME 3), will face penalties if they fail to adhere to localization norms.

A senior official told ET that companies certifying vehicles for subsidies will undergo a techno-commercial audit twice a year to ensure compliance with these norms. FAME 3 is scheduled to be announced in the upcoming budget, reinforcing the government’s commitment to promoting local manufacturing in the electric vehicle sector.


小編點評:一位高級政府官員表示,根據即將推出的 FAME 3 計劃,尋求電動車補貼的汽車製造商必須遵守嚴格的當地採購要求,不然將受罰。該計劃將在即將到來的預算中公佈,旨在支持當地製造業並推進印度電動車的採用議程。