The manufacturer of electric motors and generators considers localisation crucial and sees it as a facilitator when beginning discussions with prospective clients in India.
SEG Automotive, a company that separated from the German Tier-1 company Bosch around five years ago to become an independent manufacturer of electric motors, starters, and generators, is intensifying its efforts to localize its operations in India in response to the growing EV market. The company began developing a 48V motor for electric two-wheelers about five years ago, attributing its success to strong customer connections and a robust local supplier base. With over 125 local suppliers for the housings and copper windings of its starters and generators, SEG Automotive has achieved over 90 per cent localization levels for its products, excluding the chips of the PCB and magnets.
Previously, the company mentioned that while importing components is still more cost-effective at current volumes, the focus on localization acts as a crucial facilitator when initiating discussions with potential customers and aligns with the company’s global strategy of local production.
SEG Automotive is planning to launch a new advanced line for its high-voltage 400V motor in Hosur, Karnataka. As the leading manufacturer of mild-hybrid e-drives in Europe, the company is also introducing this technology to the Indian market.
However, they expressed concern that cheaper imports from China remain an obstacle to fully realizing the market’s potential. They noted that, unlike in Europe and the US, functional safety and cybersecurity are not yet significant considerations in the Indian market, putting companies at a disadvantage compared to low-cost imports from China. Nevertheless, they anticipate that the market will evolve, with increasing awareness of these aspects leading to an advantage for companies that conduct proper systems engineering and safety management in their components.
Electric mobility, particularly in the form of electric two-wheelers and three-wheelers, is experiencing a significant rise in India. These segments have emerged as the most accessible entry points for electric vehicle (EV) adoption, with a diverse range of products catering to various consumer needs and price points.
In the calendar year 2023, the sales of electric two-wheelers and three-wheelers combined amounted to 857,052 units (a 36% increase) and 581,696 units (a 66% increase), respectively, constituting a staggering 94.25 per cent of the Indian EV market. This surge in sales is propelling the industry towards localizing key components essential for these vehicles.
