AUTO COMPONENTS INDIA DECEMBER 2021 by Next Gen Publishing Pvt Ltd

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December 2021

COMPONENTS

INDIA

Entries To Open

Taking On Range Anxiety

VOICE OF THE AUTOMOTIVE SUPPLIERS

Return On Technical Collaborations

#Trending E-Mobility Forum India 2021

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International Stepping Up The Thai E-Game

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Cover Story Return On Technical Collaborations

Motherson Sumi Systems has announced a string of technical collaborations and this strategy continues to be the mainstay. Ashish Bhatia with Deepti Thore looks at their importance, recovery and expected returns.

06 Newscast l

Transport Day celebration at COP26

Base global supply chains on trust

IIP rises in September 2021

Epsilon Advanced Materials and C4V MoU

New LSB centre in Jamshedpur

Single window clearance and subsidies in Delhi

Due recognition at the Padma Bhushan Awards

Bilateral innovation agreement

Ki Mobility forays in EV aftersales

New Freudenberg cabin filter

Spark Minda acquisitions

ExxonMobil SUV Pro and Super Moto 2W

Chips act

TSMC Speciality Technology Fab

GlobalFoundries chases supply after Nasdaq debut

December 2021

Taking On Range anxiety With the surge in e-mobility, startup company eChargeBays has its task cut out. Sumesh Soman goes through its range enhancing solutions.

12 Mobilised

Permagard Paint Solutions

14 Upfront

Poised To Grow Manifold

26 Special Reads

Emerging Powertrain Technologies

30 Trending

E-Mobility Forum India 2021

35 International

Stepping Up The Thai E-Game

38 #Trendsmap

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608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Tel +91 9321546598, Email us at a.bhatia@nextgenpublishing.net Executive Editor Ashish Bhatia Editorial Advisory Board H. S. Billimoria, Aspi Bhathena Head - Design & Production Ravi Parmar Correspondent: Deepti Thore, Prateek Pardeshi Sumesh Soman Asst Art Director Ajit Manjrekar Production Supervisor Dinesh Bhajnik Publisher Marzban Jasoomani Associate Publisher & General Manager (North & East) Ellora Dasgupta General Manager – South Girish Shet Deputy General Manager – North & East Chanchal Arora (Delhi) Regional Marketing Manager Salma Jabbar (Chennai) Regional Manager Minocher Parakh (Mumbai) Manager Circulation - North and East Kapil Kaushik (Delhi) Subscription Supervisor Sachin Kelkar Tel +91 9321546598 Apple Newsstand & Magzter Queries: help@magzter.com Territory Sales Incharge (Circulation) Srinivas Gangula (Hyderabad) Cell +91 09000555756 Territory Sales Incharge (Circulation) Vidyasagar Gupta (Kolkata) Mob: 09804085683 REGIONAL MARKETING OFFICES Next Gen Publishing Pvt. Ltd. 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India, Mumbai -400013. Tel +91 22 9321546598 26 B, First Floor, Okhla Industrial Estate, Okhla Phase III, New Delhi - 110020, India Tel +91 11 42346600/78, Fax +91 11 42346679 S.No.261/G.L.R.No.5, East Street,Camp Pune - 411001.

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At COP 26, it was agreed, the use of coal will be “phased down” and not “phased out” in a crucial last-minute change led by India and China making for a hot debate.

he UN climate conference (COP26) has brought in a widespread engagement to catalyse a net-zero future. Calling people as the agents of change, different roles and ways were highlighted for building a climate-resilient future this year. It highlighted the role of systemic government interventions with the support of citizens. Countries would meet next year to pledge cuts to CO2 emissions and aim to limit temperature change within 1.5C. This, if achieved, is expected to limit “climate catastrophe”. This way, global warming will be limited to 2.4C. The role of renewable energy at source was highlighted. Coal, it was cited contributes to 40 per cent of annual CO2 emissions. At COP 26, it was agreed, the use of coal will be “phased down” and not “phased out” in a crucial last-minute change led by India and China making for a hot debate. To do so, global emissions need to be reduced by 45 per cent by 2030 and to nearly zero by mid-century. Interestingly, it was agreed to phase-out subsidies known to artificially lower the price of coal, oil or natural gas. Financial organisations controlling USD 130 tn also agreed to back renewable energy and committed to direct finance away from fossil fuelburning industries. However, critiques have been quick to point out the absence of such a commitment for ending support to fossil fuels altogether. With every issue of ACI, we endeavour to highlight the early adopters of these changes. It’s an effort that needs to be lauded! Please watch out for the nomination forms of the sixth ACI Awards 2022 in our upcoming issue. Ashish Bhatia Executive Editor | a.bhatia@nextgenpublishing.net /autocomponentsindiaofficial /autocomponentsindia ACI Mag

Views and opinions expressed in the magazine are not necessarily those of Next Gen Publishing Pvt. Ltd. Next Gen Publishing Pvt. Ltd. does not take responsibility for returning unsolicited manuscripts, photographs or other material. All material published in Auto Components India is copyright and no part of the magazine may be reproduced in part or full without the express prior written permission of the publisher Printed by Marzban Jasoomani Next Gen Publishing Pvt. Ltd., 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.. Published by Marzban Jasoomani on behalf of Next Gen Publishing Pvt. Ltd., 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Printed at Spring Graphics, 215 & 238, Shah & Nahar Industrial Estate, Sun Mill Compund, Lower Parel (West), Mumbai 400013, India. Published at Next Gen Publishing Pvt. Ltd., 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.

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All readers are recommended to make their own independent enquiries before sending money, incurring expenses or entering into commitments in relation to any advertisement appearing in the publication. Auto Components India does not vouch for any claims made by advertisers for their products and services. The editor, publisher, printer and employees of the publication shall not be held liable for any consequence in the events of such claims not being honoured by the advertisers. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only. Editor Ashish Bhatia

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Transport Day celebration at COP26 The Transport Day was celebrated at COP26. Participating in the fourth ministerial dialogue of the Zero-Emission Vehicle Transition Council (ZEVTC), NITI Aayog represented India on the global forum on enhancing political cooperation on the transition to ZEVs. ZEVTC, aimed at bringing together ministers and representatives of some of the world’s largest automobile markets to collectively address key challenges in the transition to ZEVs, is also aimed at enabling faster, cheaper, and easier transition to EVs for all. NITI Aayog, is known to have extended its support to the non-binding and

COP26 declaration focussed on global level accelerating transition to ZEVs. Several stakeholders involving automotive manufacturers, governments, businesses,

fleet owners among others are known to have made the declaration to actively work towards the proliferation and adoption of ZEVs. India committed to making

the transition in two- and three-wheelers effectively accounting for 80 per cent of the auto sector in India. At the forum, pledge signatories urged developed countries to strengthen international collaboration and support. The forum recognised the need for new financial instruments in order to make an affordable transition to EVs. On November 10, the government launched the e-Amrit portal for EVs, claiming to be a one-stop destination for all EV related information including busting myths around the adoption of EVs, their purchase, investment opportunities, policies, and subsidies to name a few.

Base global supply chains on trust

IIP rises in September 2021

Global supply chains must be based on trust and not on cost. Piyush Goyal, Minister of Commerce and Industry recently drew attention to how Covid19 was testimony to global supply chains required to be built on trust and not on cost. He cited that trade revival is dependent on ensuring transparent, trustworthy and resilient supply chains. “Trade must grow in a mutual and collaborative way,” the minister exclaimed. Speaking on the PM Gatishakti plan, the minister expressed confidence in the initiative bringing logistics cost down by five per cent.

The Index of Industrial Production (IIP) rose in September 2021. For FY202122, IIP grew from an average 121.3 in the first quarter (Q1FY22) to 130.2 in the second quarter (Q2FY22). The manufacturing index is expected to mirror the Purchasing Managers Index (PMI). The capital goods index rose from average levels of 74.0 in Q1FY2022 to 91.7 in Q2FY22. Goods and Services Tax (GST) collections are known to have reached the second highest monthly levels at Rs.1.3 lakh crore in October 2021. Exports crossed USD 30 billion in the same period.

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Epsilon Advanced Materials and C4V MoU Epsilon Advanced Materials (EAMPL) has entered into a Memorandum of Understanding (MoU) with Charge CCCV LLC (C4V). The scope of the MoU extends to development and qualification of large scale supply of synthetic anode material to support the latter’s supply chain with an eye on establishing a gigafactory in India. C4V expects to leverage EAMPL’s

New LSB centre in Jamshedpur Schaeffler India Ltd. in collaboration with Premier Bearings India Ltd. has opened a Large Size Bearing (LSB) refurbishment centre at Jamshedpur, in Jharkhand. Considering the rate at which bearings work, there is a constant need for replacements and hence the need to refurbish. By opting for bearing refurbishing and reconditioning, it is expected that businesses may extend the life of their equipment in an economical manner. Commenting on the inauguration, Harsha Kadam, Managing Director and Chief Executive Officer, Schaeffler India, said “The centre represents our commitment to being the preferred technology partner, as we combine efficiency and our deep product understanding to deliver value to our customers.” “I’m confident that this facility in association with our long standing distribution partner will play a pivotal role in maintaining defect-free production for customers,” he stated. The centre boasts of a dedicated team of bearing repair experts and are known to work in accordance with Schaeffler’s global rules and reconditioning requirements in a sixstep operation. WWW.AUTOCOMPONENTSINDIA.COM

technology, performance and production capabilities. This in turn is expected to support its application of the PLIACC scheme. Vikram Handa, Managing Director at EAMPL, mentioned, “This partnership will give us an opportunity to develop anode material supply ecosystem in India for global supply. As an organisation, who is committed to a sustainable future, we aim to manufacture products with a low carbon footprint.”

Single window clearance and subsidies in Delhi The state government of Delhi will offer a single window process for installation of private EV charging units. To be made available both online and by phone, it will be backed by a subsidy scheme. The scheme requires EV owners to shell out Rs.2,500 for a charging point in the case of an electric twoand three-wheeler. “Delhi now hosts the cheapest EV charging facility you can find anywhere in the country. Apart from the 100+ public charging locations that are coming up, one can now install private EV chargers at a connection cost of just Rs.2,500,” said Kailash Gahlot, Minister of Transport in Delhi. The Delhi government will provide a Rs.6,000 subsidy to the first 30,000 applicants for the installation of EV chargers in the city. The tariff rate for power used at these EV charging stations is set at Rs.4.5 per unit. On the directions of the Delhi government, power distribution companies have already empanelled 12 vendors to facilitate the installation of slow and moderate chargers. The applicant can refer to the portal and choose from among the approved vendors. There is an option to opt in for a new meter altogether or continue with the existing one. The payment can be made both upfront or through a monthly subscription plan. DECEMBER 2021 n AUTO COMPONENTS INDIA

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Due recognition at the Padma Bhushan Awards The Auto Industry rejoiced as the President Ram Nath Kovind presented the Padma Bhushan to veteran industrialists Venu Srinivasan, Chairman of Sundaram-Clayton Group and Anand Gopal Mahindra, Chairman of the Mahindra Group for their contribution in Trade and Industry. The award seeks to recognise works of distinction and is given for distinguished and exceptional achievements/service in all fields of activities/disciplines. The names of the awardees are also known to be published in the Gazette of India on the day of the presentation ceremony. All nominations received for Padma Awards are placed before the Padma Awards Committee, which is constituted by the Prime Minister every year. The Padma Awards Committee is headed by the Cabinet Secretary and includes Home Secretary, the Secretary to the President and four to six eminent persons as members. The recommendations of the committee are submitted to the Prime Minister and the President of India for approval.

Bilateral innovation agreement The Defence Research and Development Organisation (DRDO) and Directorate of Defence Research and Development (DDRD), Ministry of Defence, Israel entered a bilateral innovation agreement. The agreement encompasses innovation and accelerated Research and Development (R&D) in startups and the MSMEs of the two countries. The two countries will work on introducing next generation technologies and products in the domain of drones, robotics and artificial intelligence. It also encompasses quantum technology and natural language processing.

AUTO COMPONENTS INDIA n DECEMBER 2021

Ki Mobility foray in EV aftersales Ki Mobility Solutions, an O-to-O digital platform of myTVS entered the EV aftersales service segment. The digital mobility service platform for EVs will serve as a one-stop shop providing access to high-quality services, parts, accessories, tyres, batteries, insurance and 24x7 on-demand roadside assistance across India. myTVS’ pan India network will help EV manufacturers to jumpstart their operations country-wide. They have partnered with eight players across segments which include Okinawa and Boom Motors. The company has also partnered manufacturing start-ups and leading OEMs across segments. There are 250 touchpoints to begin with. WWW.AUTOCOMPONENTSINDIA.COM

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New Freudenberg cabin filter

Spark Minda acquisitions

Freudenberg has developed a new antivirus cabin air filter which it claims will replace the standard pollen filter. Providing active protection by reducing the concentration of aerosols, the filter is offered as standard in all Honda Cars India Ltd. The filter is designed to have a unique multi-layer which effectively filters, captures and suppresses harmful environmental gases as well as inorganic and biological particles and aerosols. In re-circulation mode, the efficiency of the filtration mode plays a major role in eradicating viruses from the air. The first layer of microfiber bio-functional layer which is coated with a leaf extract effectively inactivates allergens along with bacteria and prevents them from being released into the cabin air. Most viruses, ultra-fine aerosols, dust, and pollen are captured by the other layers of the Honda Antivirus Cabin Air-filter, while the activated carbon layer is responsible for the adsorption of dangerous acidic gases, pollutants such as PM2.5, and particulate matter. Commenting on the announcement, Rajesh Goel, Senior Vice President and Director Marketing & Sales, Honda Cars India Ltd said, “This Anti-allergen & Antivirus Cabin Air-filter is a fine example of Honda working diligently with its suppliers towards delivering a product that improves the health and safety of driver and co-occupants of the car. We expect the demand for such protective solutions to increase rapidly in future.” This air filter can capture aerosols droplet nuclei significantly below 5 µm.

Minda Corporation Ltd (MCL) announced significant acquisitions. The company acquired the balance 49 per cent stake in Minda Stoneridge with a total payout of USD 1,611 million and expanded its technical collaboration. As informed to investors, the rationale behind the acquisition includes consolidation of financials, better utilisation of cash (funds), and being overall Return on Capital Expenditure (RoCE) accretive. In line with the rationale to be flexible to enter partnerships with other players for advanced technology in clusters and sensors, the move is also expected to give the company free access to global markets. The MCL R&D centre is expected to provide engineering and R&D service as per the latter’s requirement. The company is also known to have acquired a 29.6 per cent stake in EVQPoint Solutions Pvt. Ltd. (India) aimed at strengthening the EV supply equipment portfolio involving onboard and offboard battery chargers in the range of 250 W to 6.6 kW. Besides strengthening the positioning as a one-stop-shop for EV charging solutions, it also strengthens the offerings in battery swapping solutions. MCL is the exclusive strategic investor in EVQ point.

ExxonMobil SUV Pro and Super Moto 2W ExxonMobil Lubricants Pvt. Ltd. showcased its latest products, Mobil Super SUV Pro and the Mobil Super Moto 2W engine oil upgraded range at the felicitation ceremony by its brand ambassadors. The launch was clubbed with the endorsement renewal marking the association with the Tokyo Olympics gold medallists - Neeraj Chopra, Mirabai Chanu, and Bajrang Punia. Acknowledging the efforts of the athletes in making the country proud, Deepankar Banerjee, CEO, ExxonMobil Lubricants pointed that ExxonMobil too is working hard to build world-class brands to provide trusted, high-quality performance products and solutions for the country.

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Chips act A bipartisan group of governors are known to have sent letters to US lawmakers. The letter calls for the need of earmarking subsidies for semiconductor factories. The group urged the need to set aside USD two billion for older technology chips known for causing the shortage. The shortage is said to have cost US auto makers an estimated 2.2 million vehicles and impacted 575,000 jobs. Plants are running below capacity. The semiconductor funding that passed the US senate earlier in the year is yet to pass the House of Representatives.

TSMC Speciality Technology Fab

Source: Taiwan Semiconductor Manufacturing Co., Ltd.

TSMC and Sony Semiconductor Solutions Corporation (TSMC) will form a subsidiary, Japan Advanced Semiconductor Manufacturing Inc.. The subsidiary company based out of Kumamoto, in Japan will provide the foundry service. The initial technology, a 22/28 nanometer process will look to tap the strong global demand for such niche applications. One expects the production to commence in 2024 and boast of a monthly production capacity of 45,000 12-inch wafers at an initial capex of USD seven billion. Dr CC Wei, Chief Executive Officer of TSMC said, “We are pleased to have the support of a leading player and our long-time customer, Sony, to supply the market with an all-new fab in Japan, and also are excited at the opportunity to bring more Japanese talent into TSMC’s global family.” WWW.AUTOCOMPONENTSINDIA.COM

GlobalFoundries chasing supply after Nasdaq debut GlobalFoundries after its Naadaq debut at a valuation of USD 25 billion will be chasing supply and not demand over the next five to 10 years as per Chief Executive Officer Tom Caufield. In an interview, the CEO said, the company with clients like Qualcomm, MediaTek, NXP Semiconductors and Qorvo is known to have cited the shortage for legacy nodes or older chips and not the advanced chips. The former are known to be responsible for power management, connecting to displays or for enabling wireless connections. According to Caufield, it also happens to be the company’s strength. Of the USD 2.6 billion, GlobalFoundries raised on the public markets, USD 1.5 billion which is known to have been set aside for capital expenditures to increase capacity to fill demand.

DECEMBER 2021 n AUTO COMPONENTS INDIA

obilised

Paint Protective Solutions Permagard India is eyeing expansion. Deepti Thore looks at the scope of growth through the company’s paint protective solutions.

E 12

Emerging as a fast-growing ‘Surface Paint Protection’ and ‘Car Care Treatment’ company, Permagard India is eyeing expansion. Specialised in protective coatings which are designed to perform in harsh environments, Permagard offers protective coats and solutions that are claimed to have gained traction in the automotive space. “In the automotive space, the application potential is huge since the automotive market is booming and the need for car care products are rapidly increasing,” pointed Aman Singh - Founder and Director, Permagard India. “Customers are getting more aware of their car and the products in order to keep their vehicles in a good shape. We see a huge upswing in this industry over the next five years,” he added, speaking on the potential of such products and the market for it.

AUTO COMPONENTS INDIA n DECEMBER 2021

Permagard range

Permagard develops products benchmarked to global standards. Designed to suit Indian conditions, these solutions are claimed to offer

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Mobilised protection from direct sunlight, oxidation, and airborne pollutants known to damage the coat of paint. Claimed to be highly durable and last for long, the range, said Singh, is cost-effective too. Offered for both, interior and exterior of the vehicle, these solutions are applied on the original painted surface by a certified technician. On application, it forms a glass like protective, smooth coat to add to the gloss finish. It is said to offer superior, safe, and reliable protection on old vehicles too. Known to have adopted hydrophobic efficiency, the Permagard range is claimed to be made using environmentally friendly and biodegradable components that are safe to use.

Copolymer technology

The Copolymer technology is engineered to shield the interior upholstery from accidental water spills. A hydrolysis reaction results in cross-linking forms of a water repellent polymer coating. The patented technology adopted by Permagard contains polar amines. A positive charge attracts negatively charged substrates. The resultant strong bond penetrates the porous surfaces of the substrate.

Reactive polymer technology

Applied to the exterior of the vehicle by an oscillating (buff like) machine to the painted surface of the car, the reactive polymer coating fills the paint pores. It creates a flat and uniform surface. A molecular reaction helps form a layer of coat over the paint which then initiates a covalent reaction to bond and tighten the plastic molecules. The technology enables lamination of car at a molecular level encapsulating the paint with a plasticised protective barrier.

Antimicrobial Shield

effective against the mold and mildew growing in the HVAC system of the vehicle and the microorganisms mushrooming on the interior surfaces. It also offers odour resistance.

The Strategy

To fuel its expansion aspirations, the company is known to be working on increasing its dealership touchpoints from 27 cities with plans to inaugurate in tier1 cities like Mumbai and Delhi. While mentioning how Covid-19 had impacted the business, Singh admitted the pandemic as the most disruptive force for the global paint and coating industry. While explaining how the company dealt with the crisis by focussing on safety and quality, Singh averred, “Our process ensures our partners or suppliers have the resistance to overcome challenges thus helping them to gain accelerated momentum.” He pointed out that the demand for such protective solutions is rising with markets opening up as a result of the momentum gained from the festive season and the growing popularity for personal mobility. While drawing attention to its plans for expanding its footprint in India, Singh mentioned that Permagard is working relentlessly on strengthening its ecosystem. The company already has five operational franchises spread across Ahmedabad and Surat, and few are already under development in Vadodara, Mumbai and Pune. Hinting at a new collaboration to fuel its growth plans, Singh mentioned, “New partnerships are integral to our expansion plan, and we are working towards getting into a collaboration with a pan India automotive key player to amplify our presence.” ACI

Drawing attention to the exterior protection segment as one of the highest selling segments of the company, Singh touched upon the Antimicrobial Shield, the company’s flagship. He informed that the shield protects the vehicle from 99.9 per cent of all germs and bacteria for a longer period. It is developed using Lysis technology which ambushes and assassinates viruses and germs by deflating the cell membrane of the microbe and eradicating its edifice. It is also WWW.AUTOCOMPONENTSINDIA.COM

DECEMBER 2021 n AUTO COMPONENTS INDIA

pfront

Poised To Grow Manifold

In an upfront conversation, Aman Singh- Founder and Director, Permagard India spoke to Deepti Thore on the paint protective solutions poised for a manifold growth.

Q. Tell us about your journey in India and the significant milestones. What is the receptiveness for paint protective solutions in India? A. We are one of the leading global leaders in the paint protection technology segment. Permagard India has been delivering innovative cutting-edge solutions for the past two decades for automobiles. Permagard

India has quickly climbed the success ladder in a short span of three years. Since its inception in 2018, currently, we’re a growing family with five franchises across India and a dealer network in 27 cities—having serviced 15,000 customers and receiving great acceptance and recurring demand for our products and services proving to be a complete car care protection provider.

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Q. How did business get impacted in the last 19 months and when did it recover? A. The Covid pandemic created disruptions across the globe and for industries. Our process ensures our partners/ suppliers have the resistance to overcome challenges thus gaining an accelerated momentum. Also, during the WWW.AUTOCOMPONENTSINDIA.COM

Upfront pandemic, our focus has been on safety and quality which make certain that our suppliers and partners do not compromise on these factors, especially amidst the second wave of the covid pandemic. With an end-to-end visibility, Permagard is positioned to tackle any challenge while continuing to grow and meet customer demand. During the unprecedented complete lockdown and shutdown of all the economic activities between MayAugust, 2020 our business too was heavily impacted, but with the markets opening up and with the fast pace of vaccination drive and with personal mobility becoming the preferred mode for the commuters, our business picked up. Q. Did efficiencies added along the way have a role to play? A. Permagard India has established a strong foothold in India with technologically superior, safe, and reliable products to suit Indian demographic condition. Our offerings are quite in demand. Both interior and exterior protection products along with our flagship anti-microbial shield have made a mark for themselves. It was heartening to see the Indian market

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respond so well to high-end car care products like ours. Q. Can we expect any new product launches in near future? What are the innovations on interior safety enhancements through offerings like antimicrobial protection and interior shield range in the aftermath of the pandemic? A. As one of the leading players in paint protection, we would like to stay ahead of the curve and offer our customers the best of products. Our existing line of products are highly effective. Also, we are constantly working on upgrading our offerings with the latest innovations. We introduced an Antimicrobial Shield, a surface protection shield. Proven to be effective against SARS and other beadbased viruses for up to 12 months, it guards surfaces against harmful viruses by hindering the growth of microorganisms such as bacteria, pathogens, yeast, mould, and mildew. The Antimicrobial Shield polymerises (bonds) with the surface where it is used, resulting in a strong, durable, invisible, and effective barrier to germs, even after cleaning it. It is a non-toxic, hypo-allergenic solution that utilises the most advanced germ-killing technology, which is so effective that

it kills almost 99.99 percent of germs and bacteria instantly. By assassinating the viruses at a microscopic level rather than using harsh alcohol or poison, it allows it to be used in confined environments such as cars, kitchens, offices or living rooms. It is certified by ISO14001 (Environment), OHSAS18001 (Health and Safety), and ISO9001 (Quality). Q. What is the future of paint protective solutions? A. The Indian automotive paints and coatings market is expected to grow at a CAGR of over 30 per cent during 2021-2026. This industry is poised to grow multi-folds in the coming years as key factors drive the market demand in the automotive refinish sector. Also, in the resin segment, polyurethane resin is expected to dominate the market. Q. What are your growth and challenge areas? A. The growth forecasted for novel products like ours is immense. We have an extensive range of protective products for automobiles. From exterior care to interior protection, from virus-shielding to window films, we provide holistic car care products. Our patented technology creates a high-gloss protective barrier on the car body neutralising any exterior damages like bird droppings, insects, road grime and the allied. Similarly, when it comes to the insides, our unique copolymer technology ensures that the fabric is safe from any liquid spills or discolouration from the sun. COVID-19 has been the most disruptive force for the global paint and coating industry as well. The paint and coatings industry has seen a fall in demand last year and in the second wave of the Covid pandemic in an unprecedented manner. Although the production of the paint manufacturing units has resumed with the markets opening up leading into the festive season, and demand for personal mobility continuing to rise, the surge in demand looks here to stay. ACI

DECEMBER 2021 n AUTO COMPONENTS INDIA

c Return On Technical Collaborations over Story

otherson Sumi Systems Ltd. (MSSL), among the largest auto ancillaries, has done everything in its capacity to limit the global headwinds from impacting India operations. The wiring harness manufacturer turned diversified company is claimed to have controlled costs as well as partially recovered revenue encompassing Samvardhana Motherson International Ltd. (SAMIL) and subsidiaries which in turn are known to have aided in a strong operational

AUTO COMPONENTS INDIA n DECEMBER 2021

performance. The company registered a revenue of Rs.14,881 crores and an EBITDA of Rs.1,208 crores in the second quarter of FY2022 (Q2FY22) compared to an EBITDA of Rs.1,462 crores in Q1FY2022. Notably, production costs are known to have increased owing to irregularity in product trends led by Original Equipment Manufacturers (OEMs). Here supply chain constraints are known to have induced a sharp drop in OEM production levels across geographies. While the

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Cover Story company, in the long run, expects the technical partnerships to reap rich dividends, in the short term, drop-in volumes and operational revenues have been challenging to deal with for technical Joint Ventures (JVs). MSSL announced new acquisitions like Bengaluru-based CIM Tools (India) where the company has acquired a 55 per cent stake. CIM Tools is a key supplier in the aerospace supply chain where it engages in machining and sub-assembly of components. Some of its key products include structural machined parts and sub-assemblies for aircraft doors, wings, tail, fuselage and landing gears. MMSL has also acquired a 60 per cent stake by Ningbo SMR Huaxiang Automotive Mirrors Ltd. (“SMR-NBHX”) in Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd. SMR-NBHX is a 50:50 JV in China of the Samvardhana Motherson

Automotive Systems Group B.V., Netherlands (“SMRP BV”). Expected to be completed by January 2022, the deal, subject to necessary approvals is expected to benefit SMR-NBHX as Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd. opens a front on the manufacturing of automotive mirrors for passenger vehicles, pick-up trucks, and light and heavy commercial vehicles in China. The latter is known to have reported a turnover of Euro 17 million (CNY 131 million) in CY2020. Vivek Chaand Sehgal, Chairman, Motherson in a SEBI disclosure has stated, “This acquisition is of strategic importance to us. We see a lot of synergies in the products and processes of both companies. This acquisition will further strengthen Motherson’s presence in this large and growing market and provide access to new customers and vehicle segments, bringing more opportunities for future growth and expansion.”

took place w.e.f appointed date April 01, 2021. It translates to the DWH business being classified as discontinued operations. The Domestic Wiring Harness (DWH) business in Q2FY22 registered revenue of Rs.1,377 crores, 28 per cent higher in comparison to Rs.1,075 crores in Q2FY21. EBITDA grew 13.5 per cent to Rs.186 crore compared to Rs.121 crore in Q1FY21. Profit After Tax (PAT) stood at Rs.114 crore in Q2FY22 compared to Rs.66 crore in Q1FY21. As the next step of reorganisation, SAMIL is the resultant JV entity from the merger of Samvardhana Motherson International Limited (SAMIL) into MSSL. With a 100 per cent holding of shares of the Samvardhana Motherson Automotive Systems Group BV (SMRP BV), the auto-component and allied

Negotiating headwinds

The company awaits the National Company Tribunal Law (NCTL) approval on its proposed reorganisation. This entails the announced reorganisation on July 02, 2020, wherein the demerger of Domestic Wiring Harness (DWH) business to the new company ‘Motherson Sumi Wiring India Limited’ (MSWIL) with mirror shareholding WWW.AUTOCOMPONENTSINDIA.COM

Vivek Chaand Sehgal, Chairman, Motherson

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businesses will come under the single legal entity called SAMIL. SMRPBV revenues stood at Euro 1,089 mn in Q2FY22 compared to Euro 1,265 mn in Q1FY21. EBITDA de-grew to 6.5 per cent at Euro 71 mn down from Euro 109 mn in Q1FY21. Attention was especially drawn to a low PAT of Euro one mn in Q2FY22 down from Euro 10 mn in QYFY21. By the end of Q2FY22, Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a joint venture between Motherson Sumi Systems Limited (MSSL), the flagship company of Motherson and SAMIL has registered lower revenues driven by higher input, labour and freight costs in its key geographies, in turn leading to degrowth in profitability. It has registered an EBITDA of Euro 71 million (at a 6.5 per cent margin).

The company’s JV partner PKC, the wiring harness business operated by MSSL witnessed a sharp drop in volumes on a Quarter-on-Quarter (QoQ) basis both in China and the EU. The latter, a JV with Sumitomo Wiring Systems, Japan for wiring harnesses manufacturing is known to manufacture wiring harnesses, high tension cords, battery cables and high-level assemblies. The difficulties for PKC are known to have mounted as a result of cost elevation due to new launches and supply chain disruptions. The JV is crucial to MSSL’s plans for e-mobility as the latter brings a lot to the table. Samvardhana Motherson Peguform (SMP) is known to develop and manufacture plastic parts and highly integrated modules while Samvardhana

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Motherson Reflectec (SMR) develops and manufactures rearview mirror systems and intelligent cameras technologies. In a comparison study between the two, SMP revenues decreased by 12 per cent to Euro 801 mn in Q2FY22 compared to the same period in the previous year (Q1FY21). On the other hand, Samvardhana Motherson Reflectec (SMR) into rearview mirror systems and intelligent camera technologies witnessed a 17 per cent drop in revenues to Euro 289 mn from Euro 350 mn in the same period a year ago (Q1FY21). PKC revenues were up eight per cent in Q2FY22 at Euro 283 compared to Euro 263 in Q1FY21. On a consolidated basis, revenues for MSSL grew by a margin of 32 per cent to Rs.31,594 crores compared to Rs.23,988 crores in H1FY21. WWW.AUTOCOMPONENTSINDIA.COM

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Strong prospects

The majority stake acquisition of CIM Tools is in line with MSSL’s strategy to penetrate non-automotive segments in line with its five-year outlay, ‘Vision 2025’. The latter has an over Rs.15 Bn (over USD 200 mn) cumulative booked business potential. The company is known to have reported a pro forma consolidated turnover of Rs.2,031 Mn in FY20 and Rs.1,296 Mn in FY21. Explaining the strategy behind the acquisition, mentions Sehgal, “This acquisition is our first significant step towards growth in the aerospace business. This is in line with our diversification strategy and will help us in strengthening our non-automotive business.” Sehgal draws attention to it being the 27th acquisition by Motherson ( the oldest JV partnership WWW.AUTOCOMPONENTSINDIA.COM

being of 38 years), and the company is convinced of working towards penetrating diverse industries globally. The company is known to have built 41 new plants globally as a testimony. Through its collaboration with Marelli Automotive Lighting (Marelli), the company has extended its existing JV Marelli Motherson Automotive Lighting India Pvt. Ltd., a 50:50 JV established in 2008. The new tool room in India is aimed at localising tools for the domestic market. These tools are known to be erstwhile imported. It is expected to result in high precision and aesthetical automotive lighting solutions. The tool room will be based out of Delhi (Noida)is and expected to commence production in the third quarter of 2023 (Q32023). Marelli in turn also expects to benefit from synergies between three other automotive lighting tool rooms in other regions. Through the SMRP BV MoU with Marelli Automotive Lighting, the company is exploring opportunities in smart illuminated exterior body parts. Here, the focus is on front grills, bumpers, among other parts. Grills and bumpers, notably, will house the sensors known to play a crucial role with the growing acceptance of Autonomous Driver Assistance Systems (ADAS) and Autonomous Driving (AD).

With a product pipeline including cockpits, door panels, bumper modules and plastic vehicle body parts, JV partner SMP is claimed to have penetrated Europe, North America, South America and Asia, SMP is a supplier to major OEMs and offers strong prospects for growth. SMR with the development and manufacture of rearview mirror systems and intelligent camera technologies holds the potential for compliance-driven technological developments in regions like the EU. Its manufacturing, design and marketing centres span across the USA, Mexico, Brazil, UK, Spain, France, Germany, Hungary, India, China, South Korea, Thailand, Japan and Australia. PKC is known to offer complete solutions spanning design from basic vehicle schematic, development, prototyping, validation and manufacturing of wiring harnesses for passenger cars, commercial vehicles, two and three-wheelers, multi-utility vehicles, and off-road vehicles. It is claimed to benefit from the vertical integration of critical wiring harness components like wires, connectors, terminals, grommets, junction boxes, relay boxes, protectors with an added advantage of assuring a reduced time to market. The capability of designing and manufacturing circuit checking

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and assembly boards, complete with state-of-the-art facilities for the wiring harness and component testing is claimed to make the company a full system solutions provider. The company is buoyant with strong prospects for the long term. The order book led by EVs is strong. In the closing order book, the share of EVs is pegged at 27 per cent representing unconsolidated JVs. This further includes pure EV programs excluding electric versions of multi powertrain vehicles. The SOP and new orders stand at Euro 4.5 bn of the order book valued at Euro 15.3 bn as of September 30, 2021. At the beginning of H22021, Motherson announced a technical collaboration with California-based startup Gestoos. The latter is known to leverage Artificial Intelligence (AI) for human detection and behaviour monitoring. Interestingly, the objective is to detect infants reliably in baby seats in both the front and rear-facing orientations. Its ‘Creator Platform’ is understood to be compatible with both 2D and 3D camera sensors where detection engines are claimed to have been optimised for diverse chipsets. In-cabin monitoring solutions are

becoming increasingly important according to Timo Schwarz, Chief Technology Officer of Motherson Innovations, and the company is expected to test and validate similar solutions going forward too. On the front of the smart surface, MSSL has made two strategic, technical collaborations. Its collaboration with Sensel into interactive touch technologies (automotive interfaces) and with Dycotec Materials, a UK based advanced materials startup into developing and manufacturing transparent and non-transparent conductive, insulator and barrier layer inks and coatings (for automotive and semiconductors) are expected to help the company enhance consumer experience and bring more value to the table according to Schwarz. A button less touchpad and high-resolution touch sensor are the kinds of products born out of these collaborations.

Carbon neutrality goal

Motherson announced that it joined the United Nations’ Global Compact. Claimed to serve as an endorsement of the principles-based approach to doing business that the UN encourages and as an inspiring source of knowledge,

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guidance and motivation, the company has been vocal to draw attention to the connect on sustainability initiatives, and actions planned in the areas most important to Motherson and its stakeholders to the UN SDGs. Aiming to work closely with customers and attain economic circularity, the company is closely looking at the transition to electric engines and fuelcell powertrains that are expected to present new opportunities.

Future outlook

The outlook for the third quarter (Q32022) is also likely to be influenced by supply side challenges. The company is watching the price hikes of commodities (raw input materials closely) as it expects robust passenger vehicle demand to drive growth. Sehgal states, “The global automotive industry continues to face multiple challenges on account of supply chain disruptions. Our strategy of 3CX10 has helped us limit the impact to our earnings. Our teams are working very hard to support the customers and deliver value to our stakeholders.” On dealing with the headwinds till the situation eases, he added, “We are focused on controlling our cost structure and conserving cash in the current volatile market conditions. We expect the industry headwinds to ease gradually in the upcoming quarters.” 3CX10, in effect, means no component, no country, no customer will account for more than 10 per cent of the revenue, and is known to be a downwards revision from 15 per cent in 2020. MMSL has set a target of USD 36 bn in revenue for 2020-2025 with a 40 per cent ROCE. Notably, 75 per cent of the revenues are expected to come from new automotive collaborations the company has formed. Over the long term, the company is focused on delivering an immersive interior experience, smart vehicle dynamics, connected electrification, intelligent manufacturing, and environmental sustainability. There is an equitable return on technical collaborations! ACI WWW.AUTOCOMPONENTSINDIA.COM

Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India

c Taking On Range Anxiety over Story

With the surge in e-mobility, startup company eChargeBays has its task cut out. Sumesh Soman goes through its range enhancing solutions.

crossover is taking place in the automobile industry and electrification is the pivot of this change. In the process of this crossover, the range anxiety continues to remain the Achilles heel in real world scenarios. This is known to weigh on the manufacturers while building a new platform ground up or enhancing an existing one and at the same time also known to weigh on the buyer’s mind influencing his or her’s decision. Automotive and non-automotive companies including startups are well are aware of this and giving it their all to offer higher range on a single charge. Vasant Kunj, New Delhi headquartered startup eChargeBays got due recognition as a startup offering range enhancing solutions by the Department For Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India (GoI). The company’s clientele includes MG Motor India for the company’s 2020 model MG ZS EV.

Building an ecosystem

Focussed on eliminating the range anxiety from the product lifecycle, eChargeBays decided to solve the problem at its roots. The company claims to have solutions that could enhance

AUTO COMPONENTS INDIA n DECEMBER 2021

the availability of charging infrastructure, for example. The company proposes to achieve this through a collaboration with stakeholders in the EV space. Backed by promoters well versed with the automobile and power sector, the company is known to have closely watched the developments in the EV space to translate consumer needs in to commercial rollouts. The company has identified regions to build a pan India ecosystem. For instance, its charging ecosystem must cover tier1 cities like Delhi, Kolkata, Hyderabad, Mumbai and tier-two cities like Ahmedabad, Cochin, Dehradun, Chandigarh and Pune. The long term plan includes covering tier-three cities like Kolhapur, Mangalore, Vijayawada, Ranchi, Surat, Indore, Calicut, Bhubaneswar and Aurangabad. In essence, the company aims to build a solid network of chargers across the country from the buzzing cities to the less crowded cities as well expected to have a EV population. The strategy is expected to encourage EV owners to take inter-city and inter-state trips undeterred, much like they would venture out with the ICE counterparts. The company is working to build a cooler planet with its motto of “Never out of charge”. As part of its

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Corporate Social Responsibilities (CSR), the company is associated with SankalpTaru Foundation, an IT-enabled NGO. For every EV charger installed by eChargeBays, the organisation will plant one tree on behalf of the customer through SankalpTaru Foundation. The company has segregated its charging solution into five sections- homeCharge, ezCharge, travelCharge, qkCharge, shareCharge. And each of them has been designed for a specific purpose.

homeCharge

This service focuses on the supply

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and instalment of an Electric Vehicle Supply Unit (EVSE). A wall-mounted box, homeCharge supplies electric energy for the recharge of EV battery packs. The company deploys on-site experts who are known to assess specific needs and optimise the customer’s installation experience from initial request, to on-site survey and execution. The company claims that their homeCharge specialists are well trained to meet all the EV charging related needs of the customers. eChargeBays promises to build a customised charging station according to the customer’s requirement.

ezCharge

ezCharge encompasses fast charging EVs. A normal charger is slow to charge up an EV compared to DC charger or fast charger that can be mounted on a wall or close to the customer’s workplace where the vehicle rests for the longer part of the day. A fast charger supplied by EV manufacturers is a good option though not many are known to provide these. It is here that ezCharge is claimed to fill in the void. A fast charger saves quite a lot of time and can be handy when it comes to emergencies. eChargeBays claims that the solution

DECEMBER 2021 n AUTO COMPONENTS INDIA

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can be used for both commercial and passenger vehicles alike.

travelCharge

travelCharge is suited to customers travelling to nearby towns and cities for work or leisure as they look to charge their EV on the go. This primarily revolves around the crux of range anxiety. It essentially means that when an EV owner is doing an inter state or inter city travel, a mobile charging unit will be at their disposal at all point and times. This is expected to alleviate the anxiety and put the customer in a much-relaxed state of mind. If a customer is notified of a depleting charge on the battery pack, he or she can avail of this service and do away with the panic state associated with a breakdown. This service is expected to be a game changer and is currently under development.

As the charging infrastructure develops and penetration of EVs solidify further into the automobile industry, solutions like travelCharge are expected to be lapped up by customers till the battery packs offer an even higher energy density in different terrains.

qkCharge

One of the most significant services offered by eChargeBays is the qkCharge service and it is short for quick charge. This is a service that will come very handy when an EV is completely discharged. Such a state is feared to hinder the progress to the nearest charge station with the only option remaining being to tow the vehicle. Around the clock, the available unit for a quick charge will be made available on standby for such unwanted, emergency response situations. The unit will be mobilised

AUTO COMPONENTS INDIA n DECEMBER 2021

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Cover Story and sent to the coordinates of the stationary electric vehicle and will provide enough charge for it to be driven to the nearest electric charging station. This service not only deals with range anxiety but acts as a contingency remedial measure. In retrospect, the motive here is to instil more confidence in the EV owner.

shareCharge

Considering how the pandemic has disrupted the supply chains and there is a chip shortage along with bottlenecks in the movement of resources, raw materials and components across the globe including in India, charging units and chargers are claimed to be limited in numbers too. shareCharge is an application-based utility where customers who live close by can share their chargers with each other. Owners can list their chargers on the app along with the usage time slots and users can reserve these chargers depending on the location and requirement. Aimed at creating a pool of shared chargers or a

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community of EV owners, it further strengthens the whole electrification wave with a promise of being low on energy consumption as well.

Reaching out to the EV owners

The company is looking at penetrating deeper and reaching out to EV owners. With its promise to offer solutions to enhance the ecosystem, the company has some unique ideas up its sleeve. For starters, the company is looking at offering better space management to gated communities and residentials. Admitting to the practice of installation of five separate chargers in the same premise where five families own an electric vehicle being far from feasible, the company advocates the use of a combination of a fast and a normal charger as a more efficient approach. This way, it hopes to offer a charge cycle where every vehicle gets charged in a timely manner. shareCharge is a fine example of how an app. is equipped to do most of the clockwork. It’s add-ons include an alarm system to notify when the charger and the unit is

free for a particular user. This solution is claimed to be scalable when EVs turn mass products as manufacturers realise economies of scale. Considering the fluctuations of fuel prices across the country, this is a very crucial time for startups like eChargeBays to make inroads and gain the early mover’s advantage. Startups like eChargeBays are finding acceptance and the backing from government schemes like the FAMEII subsidy or the Production Linked Incentive (PLI) scheme for Advanced Automotive Technology (AAT). Many are known to get the right push in their early days, be it from incubators or from angel investors who fund such ventures in exchange of convertible debt or ownership equity. ACI

DECEMBER 2021 n AUTO COMPONENTS INDIA

S Emerging Powertrain Technologies pecial Reads

Anurag Garg, Managing Director and Country Head - India at Vitesco Technologies draws attention to the developments contributing to the growth of automotive powertrains.

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Special Reads echnology developments in the automotive sector are driven by consumer demands, regulations, and, more importantly, the vision of a safe and environment-friendly future mobility. Closer to home, India has a strong focus on clean mobility and has established clear goals for automotive electrification. Various policies have been put in place to encourage the move towards electric vehicles - both for OEMs, component manufacturers and consumers. This regulatory push has resulted in several critical changes in the market, requiring higher levels of innovations in both products and processes. While Research and Development (R&D) and the journey towards electrification continue, we also need to consider non-electric, environment-friendly solutions in the interim. The implementation of Bharat Stage VI (BSVI) norms is the first step in this direction. Moving forward, the growth opportunity in the key regional market of the automotive industry will vary considerably. While in the past years, electric and hybrid vehicles have already gained some traction worldwide, they

“The 48-volt or 48V electrical system is a simple interim solution to India’s EV transition. A mild-hybrid 48V system does not require a complete overhaul of the existing system, making it a commercially viable option for OEMs.” are gradually being promoted by the government and are reaching markets like India, Eastern Europe, and Asia-Pacific. Hybrid vehicles play a critical role in the transition from ICE engines to EVs and are fast gaining popularity in India.

48-Volt as a solution

Anurag Garg, Managing Director and Country Head-India at Vitesco Technologies

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The EV charging infrastructure in India is the ultimate solution for range anxiety and transformation. We are yet to achieve our ambitious electrification goals, and two-wheelers are imperative for this approaching transformation. Twowheelers like motorcycles, mopeds, and scooters are the preferred mode of transport among working-class consumers because of their affordability. In 2019, over 20 million twowheelers were sold in India. Though the Covid-19 crisis resulted in a minor slowdown in automotive sales, twowheeler sales surged post the lockdown in India. While this included an interesting number of electric two-wheelers as well, there is considerable hesitation among consumers given the current supporting infrastructure. The 48-volt or 48V electrical system is a simple interim solution to India’s EV transition. A mildhybrid 48V system does not require a complete overhaul of the existing system, making it a commercially viable DECEMBER 2021 n AUTO COMPONENTS INDIA

pecial Reads

“A well-designed battery management system can check on the conditions of the batteries and help develop complex optimised algorithms, which would help improve the scope, effectiveness, and shelflife of cells.” option for OEMs. A 48V mild-hybrid architecture includes a starter, a lithium-ion storage battery, a DC/ DC converter that integrates the 12V electrical system, controllers, the hybrid powertrain, and a hybridturbocharger or a supercharger. The 48V architecture is coupled with the 12V framework through a convertor instead of displaying the 12V electrical framework.

Charging infrastructure in India

The future of electric powertrain technologies in India is dependent on acquisition and ownership costs, as well as the quality and accessibility of the charging stations across the country. Government policies, both at the State and Central level, have encouraged public-private partnerships to build the necessary infrastructure. There is additional policy support for battery technology development and modern cooling techniques, leading to rapid charging battery technologies. However, even with the charging infrastructure in place, we need to have an efficient battery management system. A well-designed battery management system can check on the conditions of the batteries and help develop complex optimised algorithms, which would help improve the scope, effectiveness, and shelf-life of cells. Many OEMs in India are working with this technology to give EVs a lot more effectiveness and flexibility on the range front and performance.

Another aspect of powertrain technology is tech innovation. There have been advancements in this area that permit the EV manufacturers to upgrade their hardware that adds ‘Dumb Chargers’ to a cloud network for prevailing shortcomings. By virtualising charger connectivity and control, fleet operators can cater to any EV, any charger with unified cloud access. This is one of the positive points for mild-hybrid consumers. The mild-hybrid electrical systems do not require complete renovation on existing engines, which is one reason why cost-conscious consumers find it appealing. We have seen an attractive growth in automotive electronics; the percentage of automotive electronics technology in India has increased day by day. It is expected that with this transformation, we will move one step closer to connected vehicles.

The road ahead

By the year 2030, a large part of the Indian roads is expected to be electric. It looks like a long way ahead because we have to overcome several milestones to achieve the goal of electrification. The automotive industry across the globe is working hard towards creating innovative solutions every day. Significantly, many technology companies are also entering the space and actively contributing to the electric vehicle industry. India is at the heart of this global revolution and can lead it from the forefront. A report by Market Research Future R (MRFR) reveals that the automotive powertrain systems market is likely to grow by 2027. The factors that are adding market growth

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“We have seen an attractive growth in automotive electronics; the percentage of automotive electronics technology in India has increased day by day.”

“Although fully electric vehicles are the end goal, mild-hybrid powertrains and the standardisation of exhaust after-treatment technologies, such as Selective Catalytic Reduction (SCR) and coated GPF, are major technology trends that could impact the powertrain industry.” include a growing trend of engine downsizing, reducing emissions, and fuel consumption. To achieve this, there has to be a rising need for electric vehicles. According to the new government regulations, the sales of hybrid vehicles are increasing, which is a step forward. Before India reaches its goal of complete electrification, the automotive sector will encounter a few hurdles. Although fully electric vehicles are the end goal, mild-hybrid powertrains and the standardisation of exhaust aftertreatment technologies, such as Selective Catalytic Reduction (SCR) and coated GPF, are major technology trends that could impact the powertrain industry.

Conclusion

The worldwide legislations towards CO2 reductions are leading towards the highest impact of technology shift for the powertrain and board net levels. The 48-volt electrification is the most viable solution in the journey towards automotive electrification, given the challenges across sectors. Implementation of the 48V will allow India to plan and build a high-quality infrastructure to support EVs, without compromising on the timeline. It will also give consumers a chance to adapt and learn about the benefits of EV, without giving in to range anxiety and other issues. ACI WWW.AUTOCOMPONENTSINDIA.COM

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E-Mobility India Forum 2021 At the maiden edition of the E-mobility India Forum 2021, the stakeholders touched upon the crucial transitional phase to e-mobility. Sumesh Soman shares the roadmap for the industry to realise its vision.

esse Frankfurt India hosted the maiden edition of the E-Mobility India Forum 2021 powered by the NGV India Summit. Held in New Delhi, the forum witnessed a footfall of 155 delegates who drew attention to the building blocks of India’s electric future in the whole of the energy mix. The topic of discussions spanned from ‘Future of mobility post the conversion to EV’; ‘EV Incentives’; ‘Policy, Challenges and Government support in accelerating electrification’; ‘Opportunities and Challenges for Auto OEMs’; ‘Accelerating EV Component Manufacturing growth through Make in India’; ‘EV Infrastructure and Innovative Business Models’ besides holding interactive knowledge sharing sessions for EV Startups on their approach into the future. The stakeholders deliberated on the country’s impending transition to

AUTO COMPONENTS INDIA n DECEMBER 2021

e-mobility and touched upon the challenges and opportunities en route to realising the end objective of zero emissions. The forum assumes significance as it was held with the backdrop of India committing to meeting its global obligations, most recently at the UN Climate Change Conference (COP 26). The forum had stakeholders revisit the commitments on reducing the trade deficit by way of cutting oil imports, and tackling air pollution at a time when Particulate Matter (PM 2.5) emission is at its highest in the national capital. Automotive continues to be blamed for the debacle. Sudhendu J Sinha, Advisor, Infrastructure Connectivity and Electric Mobility vertical, NITI Aayog remarked, “The sector is significantly important as the focus of India’s transformative mobility paradigm shifts in terms

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Trending of shared, connected and electric to meet our global obligations and reduce the negative impact on the cost of importing oil and increasing air pollution in building a self-reliant India.” “The country’s transition to an electric mobility system can save USD 330 billion (Rs.20 lakh crore) by 2030 on avoided oil imports alone,” he opined, setting the tone of the congress. “India’s per capita car ownership is low, with less than 20 vehicles per 1,000 citizens (compared with 800 per 1,000 in the U.S. and 85 per 1,000 in China), though without intervention, this number is likely to increase. This gives an opportunity to shift to EVs earlier and avoid issues of “lock-in” by increase of ICE vehicles,” he added.

Crystal gazing

The forum set the milestones by crystal gazing the future of mobility post India transitions to EVs. N Mohan, Head - EV Charging Infrastructure, Convergence Energy Services Ltd. drew attention to the advancements in the domain of dashboards to begin with. He credited the role of Internet of Things (IoT) and the expected robust network of charging infrastructure for such a change. Expecting that by then, the country would be in a position to eradicate range anxiety among EV owners and potential customers. KC Sharma, Superintendent Engineer (Mechanical), Ministry of Road Transport and Highways expressed

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how the EV transition was expected to curtail the carbon footprint and would in turn contribute to a cleaner environment. Considering the number of ICE vehicles that are on road, it is important that the EV counterpart makes a significant penetration in order to create a difference. On the issue of localisation of EVs, Sharma advocated the need to curtail imports. “The indigenous production of batteries and other components for a self-independent EV ecosystem with component level localisation is a must,” he said. He added further that battery swapping would also play a crucial part in addressing range anxiety. Of the opinion that battery swapping was key to increasing the longevity of battery packs, he cited OEM specific chemistries for self-products as a

teething issue that needs to be dealt with. “No two vehicles have the same battery compatibility and that technology is yet to be developed. And it will prolong the life span of the vehicle,” he opined. Failing which, he said, it could push the adoption of battery swapping to the advanced stages of the EV transition.

EV Incentives and policies

The government and the OEMs were lauded for a collaborative effort to boost the adoption of EVs among Indian consumers. Schemes like FAME were hailed as the perfect example of the government doing its bit to help the OEMs by way of concessions and incentives developing and manufacturing EVs and their components in India. OEMs on the other hand have introduced lucrative discounts

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and worked out subscriptionbased ownership models to lure customers. This was acknowledged as a significant contributor to the traction witnessed in the form of EV sales witnessed during the tough last pandemic marred fiscal. Sudhendu J Sinha, Advisor, Infrastructure Connectivity and Electric Mobility vertical, NITI Aayog, shared how OEMs are ramping up their supply of products on one end of the spectrum with new OEMs joining the race courtesy a low-entry barrier. At the moment, commercial vehicles and passenger vehicles both are witnessing a surge of electrification of vehicles. Every OEM is known to be attempting a portfolio expansion with the addition of an EV in its portfolio.

Sinha reiterated the importance of localisation and hailed NITI Aayog for its focussing on battery packs. He stated, “The targets are not in years but in weeks and months when it comes to EV timelines. And NITI Aayog has studied the success stories of EV manufacturers across the globe.” Crediting the NITI Aayog for initiatives expected to drive sectoral growth, and the efforts to encourage out of the box thinking and innovation at the grass-root level, he expressed confidence of such collaborative efforts together with the industry would prove fruitful in helping consumers overcome their range anxiety and battery life sooner than later.

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Opportunities and challenges

As authorities and manufacturers ramp-up to meet the demands of e-mobility, there are tailwinds and headwinds. Speaking on the road ahead, Kaushik Madhavan, VP Mobility, Frost & Sullivan advocated the need to incentivise the purchase of EVs in order to drive sales as the desired outcome. He drew attention to the battery pack’s second life as being crucial and one that needs to not be overlooked as part of its complete lifecycle. This in turn will help build a strong ecosystem, he said. Balbir Singh Dhillon, Head, Audi India drew attention to the company heading for 100 per cent EV sales by 2026 and turning a complete electric company by 2030 building on the strategy to terminate the use of diesel internal combustion engines going forward. Speaking on the Production Lined Incentive (PLI) scheme, Balbir admitted to the incentives trickling only in the distant future. There was a unanimous consensus from the panel on the transition from BSIV to BSVI having made manufacturers heavily invested in order to comply. The panel cited that the pressure mounted owing to the push for electrification soon thereafter and coincided with the headwinds of the pandemic that induced losses. The market has been the most volatile since, all agreed. WWW.AUTOCOMPONENTSINDIA.COM

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The role of government in setting up the charging infrastructure was termed crucial and the need to identify strategic locations like stadiums during the off-season to boost the implementation was cited. Guruprasad Mudlapur, Chief Technology Officer at Bosch called India a tough market and opined that a TCO and capacity led growth would pave the way for higher EV volumes. India needs to progress beyond subsidy lead growth, he said. Gajanan Gandhe, Vice President and Country Head at Dana India gave an example of the company aiming

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for 60-70 per cent localisation levels pertaining to the motors. “The low cost products will eventually phase out, and only premium products will have longevity coaxing consumers to pay a premium for such a product,” he mentioned. He gave an example of Dana India exporting half a billion worth of goods from India to make a case for local manufacturing in the country. On segments expected to do well, he made a strong case for PCB manufacturing. Atul Arya, HeadEnergy System Division,Panasonic India made a crucial comment when

he cited the surge in demand for EVs putting pressure on raw materials. “It is a challenge even for cobalt, copper and other raw materials. There is a huge demand and companies are trying to push batteries that use less of these raw materials,” he shared.

Accelerating EV component manufacturing

Guruprasad cited how electronic components had increased in both ICE and EVs alike. This has also increased complexity, he admitted. If these components are imported, then the production cost is bound to go up which in turn will reduce the demand of the vehicle, he explained. He urged OEMs to focus on EVs especially the batteries, the very pivot of the vehicle. “Localised batteries will be of great help in controlling the product costs. The PLI scheme and the Make in India programme must be leveraged to accelerate EV component manufacturing in the country,” he stated. Atul pointed at the importance of investing in batteries to realise a low TCO. “Investing in quality components is important

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for the growth of EVs. The research environment must be pushed further,” he exclaimed.

EV Infra and Innovative business models Calling it a classic example of the chicken and egg story, the panel set out to deliberate on the infrastructural push and the role of innovative business models in the last leg of the forum. The

stakeholders agreed that the way forward on infrastructure of EVs needs to be one where the OEMs and energy suppliers progress regardless of the government support. Policies and incentives must be used as a supplementary push and not the decider of the industry’s fate. Sudhendu made a crucial point when he said that for every 100 units of electricity spent to move an EV, 37 units were renewable. “The

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energy needed to push a vehicle a kilometre forward is 40 per cent less as compared to ICE. So EV is the future, there is no choice here,” he beamed. Sunjay Kapur, Chairman, SONA Comstar Ltd and President, Automotive Component Manufacturers Association (ACMA) opined that the supply chain, infrastructure, customer outreach and communication requires a complete overhaul with the focus now shifting towards EVs and green mobility. “India stands at the cusp of revolution that can completely alter the mobility scenario in the country. Looking at this grand opportunity, the E-Mobility India Forum provided an apt platform to discuss the way forward for the EV industry and to help bring various stakeholders together to create an ecosystem for the future of EVs in the country,” he concluded. The event, in hindsight, succeeded in bringing the industry up close and personal at a time of a crossover with such key developments set to drive the future. ACI

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Stepping Up

The Thai E-Game The PTT Public Company partnership with Foxconn is expected to help fastrack the development of Thailand’s EV ecosystem. Prateek Pardeshi looks at how the JV partners plan to step up the e-game. Technology Group (erstwhile Hon Hai Precision Industry Industry Co. Ltd. Widely known as the contract supplier to Apple Inc., Foxconn Technology Group (Foxconn), the Taiwanese Multinational Company (MNC) into electronics has come on board as the partner to help PTT build an end-to-end EV production platform. Auttapol Rerkpiboon, President and Chief Executive Officer, PTT said, “This joint agreement was a significant

TT Public Company Pvt. Ltd. (erstwhile Petroleum Authority of Thailand) played a crucial role in helping Thailand cut on its import dependency and meet domestic oil requirements for consumption indigenously, in 1978. Fast forward to 2021, more than two decades later, the state-owned turned private body is helping Thailand build its EV ecosystem. To do so, PTT Public Company (PTT) has found a partner in Foxconn

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milestone for PTT’s EV value chain businesses to foster sustainable growth while addressing the changing era of future energy.” Expected to help Thailand’s EV ecosystem meet its quality goals adhering to global benchmarks, the end-to-end value chain envisioned by the two JV partners is expected to provide a big boost to the stakeholders of Thailand’s local EV ecosystem. It is being looked at as an opportunity for the domestic Thai industry to scale up! Thailand could well hold its own among the Asian countries as per Rerkpiboon. “This business partnership with Foxconn will leverage the expertise of the two companies and prove to be beneficial for the domestic automotive industry and help Thailand lead Asia as a regional EV manufacturing hub,” he is known to have opined.

Scaling up

Thailand’s transition to an EV manufacturing hub is riding on the success of the end-to-end EV production platform on offer through the JV. The production platform is envisioned to include an ecosystem with both the upstream and downstream working efficiently, and in tandem like a well-oiled system. In line with the domestic policy to promote an indigenous EV ecosystem, the new production platform will look at building blocks that include a manufacturing unit backed by supply chain management, a Research and Development (R&D) centre. The open platform will be accessible by all automotive stakeholders who can expect to benefit from open access to hardware and software services to meet both domestic sales targets as well as exports to ASEAN countries. Manufacturers can hope to benefit from the platform and launch their new EV models in turn at competitive costs. It will be based out of the Eastern

Auttapol Rerkpiboon, President and Chief Executive Officer, PTT

Economic Corridor (ECC), a Special Economic Zone (SEZ) designated for three provinces in Eastern Thailand. The plant is expected to be fully operational in two-three years for which a capex of USD one to two Billion has been earmarked. A key building block of the future transition, it is expected to drive in higher investments and boost the economy as a whole. With it, Thailand’s transportation and mobility ecosystem is expected to take a step in the direction of its sustainable goals with renewables as the preferred choice to meet the next leg of energy requirements.

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Young Liu, Chairman, Foxconn

PTT makes the switch

With a market cap of USD 36 billion, PTT has decided to make a switch from the conventional fossilfuel-based energy business. Known to supply, transport and distribute Natural Gas Vehicles (NGV), petroleum products and lubricating oils in Thailand and export globally, PTT is turning to a lower-carbon footprint. Explained Rerkpiboon, “In response to the government’s policy, the expansion of EV production will provide significant opportunities for enhancing Thailand transportation system through reduced emissions, and this will allow the country to move

Mobility In Harmony

In an attempt to lower the entry barriers, the Mobility In Harmony (MIH) industry alliance by Foxconn Technology Group and MIH Consortium as an open ecosystem aims to accelerate innovation. Using the open EV alliance, to build an open EV platform, a majority of EV components like the chassis, batteries, Advanced Driver Assistance Systems (ADAS), cyber security, cloud connectivity, Battery Management System (BMS) can be developed. It also aims to lower entry barriers for automotive and non-automotive companies alike by offering reference designs and standards aimed at helping stakeholders reduce costs and the development cycles. The hardware and software are akin to the mobile-like development experience. They cover the full life-cycle of EV development including testing and deployment. MIH offers a platform for interest or workgroups to exchange ideas and drive EV growth with a well worked out strategy. Market insights, certification training, IP consultation, and maturity assessment are also on offer. WWW.AUTOCOMPONENTSINDIA.COM

International more rapidly towards sustainable, renewable sources of electricity.” As a state-owned enterprise, PTT is known to support the government’s policies for a green, emission-free future, and it shares the aspiration for sustainable mobility solutions, he adds. The new JV is expected to benefit from PTT’s hold on the Thai market.

Foxconn makes the switch

JV partner Foxconn comes with a repute of a contract manufacturer. In the JV, PTT is looking to build on Foxconn’s recently formed Mobility In Harmony (MIH) industry alliance, an open network that allows developers and manufacturers to provide a complete software and hardware platform for building electric vehicles. Young Liu, the Chairman of Foxconn, is known to have stated, “This cooperation with PTT and the Thai government to realise the vision of sustainable

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development of the EV industry, demonstrates that the MIH ecosystem is growing. Moreover, this way of cooperation is widely recognised.” As per Liu, to aid PTT’s development in EV and battery charging infrastructure, Foxconn will look to contribute its expertise and technology to gradually build a complete and vertically integrated EV industry in Thailand. The end objective is to involve strategic partners in a technological and or financial arrangement and build the next generation of EVs besides looking at other potential areas of growth. The company is looking to build such partnerships in the Middle East, India and Europe and expects EVs to contribute to the revenue by the third quarter of 2022 (Q32022).

Thailand prospects

The newly developed plant will manufacture EV’s based on the Foxconn technology mentioned

above. In the initial phase of operations, approximately 50,000 EVs are expected to be rolled out. This production will be scaled up 3X to 150,000 vehicles per annum. With over 50 per cent of the domestically manufactured vehicles known to be exported, the domestic market led by two-wheelers relies on imports of fully-built vehicles. If it doesn’t catch up with the rest of the ASEAN countries on the EV front, it faces the threat of being a laggard. As one of the top automotive manufacturing nations rolling out an estimated two million vehicles produced per annum, the Thai government is naturally encouraging more investment into the country’s zeroemission vehicles business. The government is known to have put in place a 30/30 goal. This translates to an estimated 30 per cent of the overall vehicles constituting EVs by 2030. By 2030, the number of PV’s on a per annum basis will rise to approximately 725,000 vehicles. ACI

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