Delta Electronics India Sets Ambitious Goal for 30% Annual Growth in EV Sector
In an ambitious move to solidify its presence in the electric vehicle (EV) sector, Delta Electronics India, the Indian arm of Taiwanese manufacturing giant Delta Electronics, is aiming for a significant increase in revenue share by 2030. Despite EVs currently contributing a small portion to the company’s overall revenue, Managing Director Niranjan Nayak projects a remarkable 30% year-on-year growth, fueled by the introduction of new products like the 240kW DC Fast EV Charger.
Anticipated Growth in EV Sector
The company’s strategic shift towards the EV sector is expected to position it as a major growth driver in the near future. Nayak emphasizes that while data centers and industrial automation currently drive revenue, EVs are poised to play a crucial role in Delta Electronics India’s revenue stream. “Our initial focus is on two-wheelers, three-wheelers, and four-wheelers, encompassing both onboard and offboard solutions. As we progress, we plan to venture into e-buses and e-bikes,” Nayak reveals. Presently, Delta Electronics India contributes approximately 5% to the company’s global revenue, a figure that Nayak envisions doubling to 10% within the next five years.
Localisation Efforts and Infrastructure Development
Delta Electronics India has prioritized localisation efforts, with 60-65% of its products being locally manufactured. Nayak highlights, “More than 60-65% of our products sold in India are manufactured locally.” The company operates a substantial production facility in Krishnagiri, established in the past two to three years, in addition to factories in Rudrapur (specializing in telecom and UPS) and Delhi (focusing on display solutions).
While significant progress has been made in localising components, challenges persist in sourcing certain critical parts like semiconductors due to India’s limited infrastructure in this area. Nonetheless, Delta Electronics is actively collaborating with local vendors and international suppliers to address these gaps and bolster local manufacturing. With a $500 million investment in operations, the company has allocated a substantial portion towards infrastructure development, including land acquisition, testing equipment procurement, and factory expansion.
Investment in Research and Development
In addition to bolstering infrastructure, Delta Electronics is making substantial investments in research and development (R&D) to drive innovation and technological advancement. “The second-largest investment is directed towards building state-of-the-art labs, followed by recruiting skilled personnel for R&D and other critical functions,” Nayak elaborates. As the company navigates the evolving landscape of the EV sector, continuous investment in R&D will be pivotal in fostering growth and maintaining a competitive edge in the market.
In conclusion, Delta Electronics India’s ambitious growth projections and strategic investments underscore its commitment to establishing a strong foothold in the burgeoning EV sector. With a clear focus on localisation, infrastructure development, and R&D, the company is well-positioned to capitalize on the evolving market dynamics and emerge as a key player in India’s electric vehicle ecosystem.