Due to the pandemic’s second wave in India, June’s manufacturing Purchasing Managers’ Index (PMI) contracted, dipping below 50 for the first time in 11 months. However, the worst is over, and the business resumption index jumped from 92% to 96% last week. The government’s green energy focus continues to attract large investments. The auto industry is doing well, and Maruti-Suzuki will invest billions for a new car factory. Triton plans a new electric bus factory, and Nissan plans for an EV gigafactory to include battery production. For more industry intel and other tidbits, read on.
With the gradual receding of the second wave of the pandemic, states are easing restrictions, and economic activity has picked back up. Per the Nomura India Business Resumption Index (NIBRI), activity jumped to 95.7% of the pre-second-wave level for the week ending July 11, up from 91.6% the week before.
The severity of the second wave brought down the manufacturing PMI to 48.1 in June, after 11 months of growth. The manufacturing PMI in May was 50.8.
The green energy focus of the government continues to attract large, private-sector companies to plan and invest. As per the government’s plan, 175 GW of renewable energy (RE) generation capacity would be added before the end of 2022 (100 GW in solar, 60 GW in wind, 10 GW in bio mass, and 5 GW in hydro). Another 450 GW of capacity would be added by 2030. To meet these targets, $30-50 billion would be invested annually between the government and the private sector.
Overall, vehicle sales grew 23% year-over-year (YOY) in June. Cars had a YOY gain of 43%. Two-wheelers’ YOY gain was 17%. Tractors’ YOY gain was 14%. Commercial vehicle sales were 2.5 times those of June 2020.
Reliance Industries is planning to invest $10 billion in setting up an integrated green energy giga complex in Jamnagar and would be adding 100 GW solar capacity by the year 2030.
JSW Energy, a division of India’s JSW Group, will invest $10 billion to scale up its power generation capacity to 20 GW by the year 2030.
Maruti-Suzuki is planning to invest $2.5 billion for a new car manufacturing plant in Haryana.
U.S. solar technology firm Cubic PV is planning to invest $1 billion for the manufacturing of PV cells and panels.
Nissan Motors is working on plans to manufacture electric vehicles in India, including building a gigafactory for the mass production of batteries.
Triton, the U.S.-based EV company, is investing $300 million to set up an electric bus manufacturing plant in Telangana. The company recently received a $300 million order from one of India’s largest automotive distributors for 2,000 electric semi-trucks.
SpaceX is in talks with local Indian manufacturing companies to manufacture satellite communication equipment, including antennas and user terminal devices.
Hero Electric, India’s largest electric scooter company, will invest $100 million in a new factory with the capacity to produce 1 million units per year.
