India’s industry is humming along at a pre-pandemic pace, if not better. The PMI is above 55. Vehicle sales are up 34% YOY, with commercial vehicles up 165%. The new Vehicle Scrappage Policy was launched, which will attract billions of dollars in new investments. Steel, silver, aluminum, and copper are all seeing serious moneys infused to increase production. Very interesting developments have arisen in e-mobility, and batteries in particular, including the possibility of a magnetless powertrain. For more industry intel and other tidbits, read on.
The manufacturing PMI bounced back to 55.3 in July from its contraction level of 48.1 in June. This was the steepest rise observed in the last three-month period.
The business resumption index rose to 101.2 for the week ending 15 August, up from 99.6 the week prior. This is a return to pre-pandemic level.
The Index of Industrial Production had a YOY increase of 13.6% in June, and unemployment fell to a four-month low of 6.95% in July.
Also in July, YOY overall vehicle sales rose 34% to 1,556,777 units. Two-wheelers rose by 28%, tractor sales were up 7%, and commercial vehicle sales increased by 165%.
The much-awaited Vehicle Scrappage Policy launched mid-August, which will further boost automotive sales and attract an estimated $1.5 billion of new investments in the automotive sector.
According to the recent study jointly conducted by the Society of Indian Automobile Manufacturers Association (SIAM), the Auto Components Manufacturers Association (ACMA), and Ernst & Young, the auto industry has identified 12 key components to focus on for local production. The idea is to reduce imports, supply local consumption, and increase exports to the global auto parts sector. These items include drive transmission and steering, engine and engine components, electrical and electronic components, and iron and steel, which together account for more than 75% of auto parts imported into India. The Production Linked Incentive (PLI) scheme package of around $1 billion offered for producing speciality steel will provide the necessary incentives to attract the necessary investments.
India’s auto component manufacturer ANAND Group and Korea’s Mando Corp. announced a new joint venture to supply components for the two- and three-wheeler e-mobility market.
India’s mining company Vendanta Group is planning to invest $20 billion over the next five years across its businesses, doubling its steel and silver production and further enhancing the capacity of aluminum production.
In line with its previous announcement to invest $10 billion in the green energy sector, India’s Reliance Industries made a $50 million investment in U.S.-based energy storage company Ambri Inc. and is in talks with them to manufacture batteries in India.
India’s TVS Motor Company is investing $150 million in a new vertical to manufacture electric two-wheelers.
India’s lithium-ion battery maker and battery recycler Lohum Cleantech has firmed up plans to expand its manufacturing capacity of lithium-ion batteries from 300 MWh to 1000 MWh (1 GWh) and its recycling capacity 10 times, from 1,000 tons per annum to 10,000 tons per annum. The expansion should be completed in 18 months.
Indian aluminum and copper company Hindalco will invest around $1.5 billion over next five-year period to expand its aluminum flat-rolling capacity at three of its extrusion plants.
U.S.-based First Solar Inc. is planning to invest $700 million to set up a fully vertically integrated photovoltaic thin film solar module manufacturing facility in Tamil Nadu.
India’s Sona BLW has partnered with Israel’s IRP Nexus Group in a joint development project to create a revolutionary high-efficiency, low-cost, magnetless powertrain (motor and controller) for the global electric two- and three-wheeler vehicle market.
India’s Tata Advanced Systems Limited (TASL) was awarded a contract to manufacture and supply Boeing 737 fan cowls at its facility in Hyderabad.