AUTO COMPONENTS INDIA DECEMBER 2022

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Content Cover Story december 2022 COMPONENTS

Strengthening The Mix Of E-Components

Flash Electronics has partnered with Polish Group Elimen on technical grounds. Ashish Bhatia looks at the scope, expected to strengthen its mix of e-components.

FPT Industrial India Foray

FPT Industrial, the IVECO Group company has grand plans for India. Prateek Pardeshi assesses the gas engine as the foundation of this strategy.

AUTO COMPONENTS INDIA

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Executive Editor

Ashish Bhatia

Correspondent: Prateek Pardeshi

Contributors: Deepti Thore, Sumesh Soman

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Ajit Manjrekar

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Changing Landscape

he low entry barriers of the e-mobility segment have shown how tech companies can turn into automotive companies with the right collaborations. Their go-to-market strategy has in turn forced the purebred automotive companies to rethink or join hands with these new entrants. Some have even opted for incubators to support the larger cause of helping new technologies to see the light of day. It’s no secret that to stay ahead of the curve one must invest in technology from either side. It is also to stay relevant. This has brought about high levels of disruption in products, processes, and services. It has changed the competitive landscape. However, a 360-degree change is ill-advised for component suppliers just yet unlike the case with Original Equipment Manufacturers (OEMs). With 30 per cent of the vehicle directly under the threat of change, new-generation businesses are increasingly defining the future. There are opportunities on many fronts like connectivity and services, CASE, and with ICE. Global opportunities are high too. A total of USD 95-100 bn is at stake. The companies that will take ownership of the process and evolution of the automotive landscape are likely to gain an upper hand.

Bhatia

Editor | a.bhatia@nextgenpublishing.net

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 Uchitha Graphic Printers Pvt. Ltd., 65, Ideal Industrial Estate, Mathuradas Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400013, India., 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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Editor Ashish Bhatia

Ashish

Executive

companies that will take ownership of the process

evolution of the

Newscast

L Ganesh receives the Deming Prize

L Ganesh, Chairman of the Rane Group of companies has bagged the prestigious Deming prize in Japan. He becomes the third Indian and fifth globally to receive this highest award for Total Quality Management (TQM). The Deming Distinguished Service Award is given

to individuals with outstanding contributions to the dissemination and promotion of TQM. The winner receives the Deming Medal with an accompanying Certificate of Merit from the Deming Prize Committee. L. Ganesh commented, “Commencing

New CTO at Covestro

Dr Thorsten Dreier has been appointed as the new Chief Technology Officer (CTO) of Covestro. He will replace the current CTO, Dr Klaus Schäfer from July 01, 2023. After taking over as CTO, Dreier will assume responsibility for the corporate functions including

Covestro and HASCO Vision partner

Covestro and HASCO Vision have collaborated for recycling post-industrial used plastics. Both entities have formed a closed-loop recycling business model that would guarantee high quality and traceable plastics recycled from the manufacturing of automotive lamps. The new agreement was signed at Covestro booth at the China International Import Expo. As a part of the agreement, Covestro will zero in on partners in the recycling industry to retrieve used plastics from HASCO’s manufacturing sites before turning them into high-quality Post-Industrial Recycled (PIR) polycarbonates and

Process Technology, Engineering, Group Health, Safety and Environment and Group Procurement. According to Dr Richard Pott, Chairman of the Covestro Supervisory Board, said, over the last 20 years, Dr Dreier has demonstrated his technological expertise,

from 2003, five of our Rane Companies have won the Deming Prize and three of our Group companies went on to win the Deming Grand Prize. It has been a phenomenal journey and I consider myself fortunate to have been part of this journey.”

customer focus, market orientation and management qualities. “He is therefore the ideal successor as CTO and will continue to successfully drive our transformation heading towards a circular economy as we aspire to achieve climate neutrality,” he added.

polycarbonate blends. “This innovative cooperation breaks the convention in terms of raw materials supply as it focuses on using PIR materials to create a circular economy,” Jinlong Ao, Deputy General Manager and Chief Technology Officer of HASCO Vision, said.

New Kennametal India facility

Kennametal India Ltd. (KIL) has inaugurated a new stateof-the-art metal cutting inserts facility, in Bengaluru. Inaugurated at the hands of Sanjay Chowbey, Vice President, Kennametal Inc. and President for Metal Cutting Segment, and Vijaykrishnan Venkatesan, Managing Director, KIL, the new manufacturing facility, is expected to help the company meet the growing domestic and global customer demand for Kennametal and WIDIA brand inserts. Speaking about the facility, Chowbey said, “Through expanded capacity, advanced equipment, and a highly skilled and talented workforce, we will bring improved quality, product performance, innovation and delivery to our customers.” The new facility incorporates intelligent manufacturing systems and helps meet the need for diverse and highgrowth market segments in India including transportation, aerospace, general engineering and energy.

MT Autocraft and Korean EMTC JV

Cummins and Tata Motors MoU

MT Autocraft, the parent company of the MTA E-Mobility (MTA EV) has tied up with the Korean technology major EMTC to manufacture automatic powertrains for electric two-wheelers and three-wheelers. The former aims at expanding its local Electric Vehicle (EV) manufacturing ecosystem through this JV. “We will be the first to manufacture and introduce a multi- speed powertrain for EVs in India,” claimed Vivek Jakhmola, Co-founder, MTA EV. He informed that the automatic powertrain will enhance the efficiency by at least 20 per cent. These indigenous powertrains will be manufactured at MTA EV’s newly-started manufacturing facility at Palwal in Haryana.

Cummins Inc. and Tata Motors Ltd. have signed a Memorandum of Understanding (MoU) to design and develop zero-emission propulsion technology solutions for commercial vehicles. This includes hydrogenpowered internal combustion engines, fuel cells, and battery electric vehicle systems. Speaking of the partnership, Tom Linebarger, Executive Chairman, Cummins Inc. said, “Our collaboration in India is an important milestone for Cummins and Tata as we work together to accelerate the shift to a carbon-free economy and a zero-emissions world.” India will be one of the first markets to receive Cummins’ hydrogen engines, the company stated. N. Chandrasekaran, Executive Chairman, of Tata Sons, and Chairman, of Tata Motors added, “Working with partners who share the same vision is essential for this transition. The tie-up will strengthen a long-standing relationship with Cummins for their next-generation, hydrogen propulsion systems.”

New Valvoline compressor oil

Valvoline Cummins Private Ltd. has introduced its ‘Switch to Synthetic’ value proposition and campaign to all passenger car customers in India. The portfolio of full synthetic engine oils that has the ‘All Climate Advanced 5W30’ and ‘All Climate Premium 10W40’ are claimed to have democratised access to high-performance engine oils. Sandeep Kalia, Managing Director, Valvoline Cummins India, said, “We are committed to researching and developing innovative industry-first products and are an agile customer-centric brand that is quick to meet customer demands through our classleading products.” This new oil line has strong and uniform molecules that provide high thermo-oxidative stability, longer drain intervals, and lower engine maintenance costs. Furthermore, excellent low-temperature properties are said to aid cold starts and extend battery life.

New GHSC at Apollo Tyres

Apollo Tyres has appointed Rajasekhara Reddy as the Group Head of Supply Chain (GHSC) for the Asia Pacific, Middle East & Africa (APMEA) region. While providing leadership and direction to the regional SCM function, Rajasekhara would be working with various

Apollo Tyres bags Deming Prize

Apollo Tyres’ Chennai plant has bagged a Deming Prize, one of the highest awards on Total Quality Management (TQM). The award was received by C Thomas Mathew, Unit Head, Chennai Plant, Apollo Tyres Ltd. from the Deming Prize committee in Tokyo, Japan. The Chennai plant was bestowed upon this award for showing outstanding

stakeholders like sales, marketing, commercial and manufacturing in order to improve customer service levels, reduce costs and deliver supply chain cross-functional projects. Based out of Apollo Tyres’ corporate headquarters in Gurugram, NCR, Rajasekhara will report to

Satish Sharma, President, APMEA. Rajasekhara Reddy, GHSC, SOMES, Apollo Tyres Ltd. expressed, “In addition to the digitalisation of the supply chain, I would also be focusing on the increased usage of environmentally responsible practices within the overall supply chain network.”

performance by practicing Total Quality Management (TQM), utilising statistical concepts and methodologies based on the company’s excellent business philosophy and leadership. Highly automated and equipped with advanced manufacturing practices, Apollo Tyres’ Chennai Plant is servicing multiple Indian and global OEMs.

86%

TRUST

Advertising in traditional media continues to enjoy high trust amongst consumers, with 86%* expressing confidence in print making it the most trusted medium.

* ASCI - ISA Report Findings

New CMO at CEAT

Lakshminarayanan B has been appointed as the Chief Marketing Officer (CMO) at CEAT Ltd. He will lead the charge of the marketing initiatives across all passenger vehicles, trucks, and buses expected to bolster the tyre OEMs position. With over 18 years of experience in sales and marketing, he previously worked with organisations like

TotalEnergies EV fluids in India

Asian Paints, Samsung India Electronics Ltd. Commenting on the appointment, Arnab Banerjee, Chief Operating Officer at CEAT Tyres said, “He is a highly experienced professional with a strong track record of building brands. His experience in the consumer marketing space as well as deep insights into the consumer psyche will

play a pivotal role in shaping our marketing strategy and reinforce our position as a provider of safe and smart mobility.” Lakshminarayanan B expressed, “I am excited to lead and drive new frontiers with CEAT Tyres. I have seen the evolution of the brand over years amongst both key OE manufacturers as well as consumers.”

Tirex EV chargers for IOCL

TotalEnergies Marketing India Private Ltd. (TEMIPL) brings in the EV Fluid range in India for electric and hybrid cars. It is also extended to electric bikes. The Quartz EV fluid for cars and Hi-Perf EV fluid for bikes are the new product lines designed specially for drivetrain reducers, e-motors, e-transmissions, and batteries. These customised fluids are claimed to offer an improved electrical property against short circuits and static electricity. Speaking on the sidelines of the launch, Syed Rahman, Chief Executive Officer of Lubricants South Asia, TEMIPL said, “With the launch, we bring our global experience and technical expertise to the Indian market. Our products have been specially developed to meet the cooling, insulating and lubrication needs of all types of electric and hybrid vehicles to ensure that they remain primed throughout their life.”

To support EV charging infrastructure at petrol pumps, Tirex Transmission Pvt. Ltd. has won the contract from Indian Oil Corporation Ltd. (IOCL) to supply EV chargers at the latter’s retail outlets. According to Arth Patel, Chief Executive Officer, of Tirex Chargers, through this contract, the company plans to achieve the target of 30 MW capacity of charging pan India. The company will supply 25 DC fast chargers of various capacities with connector CCS2 IOCL allowing them to charge with shared capability.

Infineon and Stellantis MoU

Infineon Technologies AG and Stellantis have signed a non-binding Memorandum of Understanding (MoU) for the multi-year delivery of Silicon Carbide (SiC) semiconductor chips. As a part of the deal, Infineon would reserve manufacturing capacity and supply CoolSiC™ ‘bare die’ chips in the second half of the decade to the direct tier1

Schaeffler acquires CERASPINS

suppliers of Stellantis. The potential sourcing volume and capacity reservation has worth of an over Euro one billion.

Peter Schiefer, Division President Automotive of Infineon expressed how compared to traditional power technologies, SiC increases the range, efficiency and performance of electric vehicles. “With our leading CoolSiC™

technology and continuous investments in our manufacturing capacities, we are well positioned to meet the growing demand for power electronics in electromobility,” he commented. Infineon and Stellantis are in talks to deliver the CoolSiC Gen2p 1200 V and CoolSiC Gen2p 750 V, chips for electric vehicles under the Stellantis brand.

MoU for battery cell production

Schaeffler AG has acquired CERASPIN from the CERATIZIT Group. Headquartered in Livange, Luxembourg, the latter brings to Schaeffler an 25 years of experience in the development and production of premium ceramic products. A majority of which are processed into rolling elements for various bearing applications. The European supplier that has been supplying to the Schaeffler Group since 2004, strengthens Schaeffler’s position in key, future strategic areas of interest. “CERASPIN’s expertise in ceramic components for rolling bearings is critical to Schaeffler,” averred Dr Michael Pausch, Chief Technology Officer (CTO) at the Schaeffler Industrial division. He further added, “We are strengthening our supply chain, particularly in Europe, by acquiring CERASPIN, while also establishing a strong position in high-value components for strategically important growth sectors.” The transaction, which is subject to customary closing conditions, is expected to close before the end of the fourth quarter (Q4-FY23). The parties have agreed not to reveal any information about the transaction.

The UK Battery Industrialisation Centre (UKBIC) and Germany’s Fraunhofer Research Institution for Battery Cell Production (FFB) have signed a Memorandum of Understanding (MoU) to focus on future collaboration. This joint participation in European research and development consortia and strategically important projects, that entails the development of a European battery technology roadmap, the sharing of best practices and experience in cell production will extend to the championing of innovation and technology in battery cell production. Jens Tübke, Chief Executive Officer of the Fraunhofer Research Institution for Battery Cell Production FFB, added, “UKBIC and Fraunhofer FFB have a common goal, namely, to provide innovations for efficient and sustainable battery cell production for European industry.”

Upfront | Exclusive

Rane Group Is Leveraging

QCT

In an upfront conversation, Vinodh Kumar, Assistant General ManagerOperations at Rane Brake Lining Ltd. speaks to Ashish Bhatia. The company bagged a QCT excellence award at the ACMA Annual Summit 2022 and subsequently the Group bagged the Deming Prize .

Upfront | Exclusive

Q. What is your take on the upbeat sentiment of the auto components suppliers that work behind the scenes?

A. After two to three years it’s good to see the supplier community coming into their own. Looking at the roadmap for the next five years and the growth potential, the upbeat sentiment is justified. E-mobility is one of the key focus areas for the supplier community. The Group

management is watching the developments closely to turn the adversities into opportunities.

Q. How is the Group balancing its core revenue streams with its non-core revenue streams? Is it difficult to stay true to the DNA with the fast paced shifts?

A. Yes, its a dilemma for the entire industry and a juggling act that has to be done. We are investing in our core strengths and developing new capabilities at the same time. At Rane, the focus though is strongly on leveraging the core strengths to fuel our growth plans.

Q. What did it take for Rane Brake Lining to optimise its QCTbased operations and emerge a winner? Has supply chain transformation accelerated in a post-pandemic era?

A. Make in India is a major priority for us at Rane. We have focused a great deal on best manufacturing practices across our divisions and shopfloors. The major project undertaken by us is on enhancing efficiencies by a margin of 20 per cent which in turn enabled us to get the topmost recognition. The transformation has been at an accelerated pace in a post-pandemic era. The efficiencies across the value chain

Make in India is a major priority for us at Rane. We have focused a great deal on best manufacturing practices across our divisions and shopfloors.

include using sustainable power and high localisation content where the cost of production is reduced. Automation has enhanced overall productivity too.

Q. What is the road map for the foreseeable future?

A. The industry despite its set of challenges is moving in the right direction. The industry as a whole is undertaking multiple projects to iron out the creases in the value chain and that continues to be a priority for us too. We are confident that we will be able to leverage our strengths and grow at an exciting pace. ACI

Upfront | Exclusive BMW India Hails Supplier Support

In an upfront conversation Vikram Pawah, President and CEO at BMW India spoke to Ashish Bhatia where he hailed the supplier support for higher localised content per vehicle led growth.

Q. How do you gauge the industry sentiment against the backdrop of volumes reaching pre-pandemic peaks?

A. The real sentiment that has been coming to the surface is quite strong. After the two pandemicmarred fiscal, to be heading in the pre-pandemic direction hints at a very steady and reverse recovery in demand. Especially, our segment or our sales have seen a quicker recovery. It is really good to see that we haven’t seen that kind of demand for a long time. The growth has been solid in our segment where we’ve grown by ~51 per cent in the first eight months of the year for our two brands BMW and Mini. In others, we have grown by ~48 per cent. These record numbers that we’ve seen is an outcome of our operations over the last 15 years. It augured well for the festive season too. This is of course due to a lot of exciting products

By 2023, the Group will have 12 pure EVs on sale worldwide. We are trying to raise some initial production levels so we’ll be aggressive.

which have generated excitement. It reflects on our domestic sales that appear robust. If I look at it geographically as well there is a good distinction between tier1s, tier2s, and the tier3s. So it’s not that only the main metros are growing, it is that all the markets are growing at a really fast pace.

Q. How do you look at the progress made on e-mobility and how have your suppliers supported you in this journey?

A. BMW has led in the EV space. In 2013, we launched the BMWi and even in 2022, we have again proven that we are the leaders in e-mobility because we are the only manufacturer in the country to

offer three different distinct models. I don’t think any other manufacturer is offering that kind of variety. So be it the mini hatch or the i4 sedan or the iX Sports Utility Vehicle (SUV), you know the customer can choose either one of those variants to attach to e-mobility. We are experiencing good demand for our launches for the whole year. By 2023, the Group will have 12 pure EVs on sale worldwide. We are trying to raise some initial production levels so we’ll be aggressive. We are also celebrating fifteen years of product development including our manufacturing operations in Chennai. So we recently delivered one lakh units for our customers who are a very important part of this success story. From day one we started increasing our production. I am really happy to share that 98 per cent of the sales that we do today are actually locally produced in India. That clearly

shows it’s a fruitful collaboration with our supplier partners who are very important stakeholders across axles, seats and other parts.

Q. Does the emobility portfolio live up to the performance motto of the brand? How has the powertrain evolved?

A. For us at BMW, I think when we’re looking at the EV space, we want to make sure that the BMW is a fun-todrive option for our customers. That’s the core of our brand and driving dynamics is very critical for us. We want to ensure when we’re launching an EV, the friendly dynamics remain intact. So what comes along with that is the power, the torque that you get for the EVs and also the range that comes with it. We’ve taken into account the feedback from our customers on these. In India, typically the range requirement is shorter. Through i4, we are offering the longest range in the country.

Q. What are the government interventions desired by you and how do you plan to cope with a dynamic business environment?

A. Anything that government can do to boost the segment is welcome. Their intent is clear to have 30 per cent conversions by 2030. Their vision on making the country a five trillion economy is clear. From our end, of course, it’s a constant endeavour to look at how we can gain efficiencies at our plants, for example. So the idea is to create more capacity for the investment first because

we’re able to set some of the pricing over the years, working on improved efficiency. For example, we have a capacity on a single shift basis with two lines of power units so we’ve been enhancing that over the years and we expect to be able to cater to the demand. We are watching the geopolitical developments and logistics very closely to align with these new developments. We have been able to offset price increases to an extent. As BMW, we started in the EV space in 2013 so it’s been about nine years now. That’s the process for us so maybe we’re a little bit more experienced in our generation. We want to be at the forefront of new technologies! We have 24 launches and five bikes lined this year. Looking forward to an exciting year ahead.

Q. What are the growth and challenge areas for BMW and the industry as a whole?

A. The growth areas are there for all to tap. Stability of the policy is perhaps one challenge where we want a clear road map on the next 10-15 years.

Q. A word on ensuring occupant and pedestrian safety against the backdrop of an avoidable road mishap that has forced a rethink?

A. Safety is a top priority. We ensure all the boxes are ticked. From seat belts to air bags to reinforcing the vehicle structure. Pedestrian safety is part of the overall designing. We always follow the rule of the land and try to stay ahead of the curve. ACI

We want to be at the forefront of new technologies! We have 24 launches and five bikes lined this year. Looking forward to an exciting year.

Stability of the policy is perhaps one challenge where we want a clear road map on the next 10-15 years.

Cover story

Strengthening The Mix Of E-Components

Flash Electronics caters to big names like Bajaj Auto, Volkswagen, Jawa, KTM, Audi, Eberspacher, BMW, Mahindra, Bosch, Nissan and Yamaha, Piaggio and Greaves Cotton. The company continues to be persistent with its EV aspirations as it was during the raging pandemic. Emerging stronger, albeit, with delays, out-of-control, it stayed put on the route of collaboration with niche EV companies. Aimed at enhancing and strengthening its EV component offerings to customers. The recent collaboration with Polish Group Elimen is a testimony to the company building a stronger foundation for its business prospects across the Passenger Vehicle (PV) and

Flash Electronics has partnered with Polish Group Elimen on technical grounds. Ashish Bhatia looks at the scope, expected to strengthen its mix of e-components.

Ashish Bhatia

@atashishbhatia

Cover story

Commercial Vehicle (CV) segments. Averred Sanjeev Vasdev, Managing Director of Flash Electronics, “We are going to be the only company in India to be producing motors from four kW to 300kW along with high-end electronics.” At Flash Electronics, Vasdev stated, the focus is on enhancing the product horizon from being the first to start parts production for electric twoand three-wheelers to catering to e-buses under the ‘Make in India’ programme.

The company wants to further enhance this mix of e-components, from having a large number of parts like the traction motors, controllers, DC-DC converter and

Brushless DC motors (BLDC).

On the infrastructure side, the company offers private charging station cooling applications. The new partnership with the Elimen Group will aid its progress on the CV mix of e-components, in particular.

With the new Polish partner offering Flash Electronics highly specialised engineers, the

High Voltage e-Motors (180 kW i 360 kW).

cover story

company is confident of developing new-generation products to meet the requirements of its Original Equipment Manufacturer (OEM) customers. Vasdev revealed, of these, some were already being tested by a few domestic OEMs across the PV and CV segments. The new partnership comes close on the heels of another technical collaboration with the French company ‘Energy Stone’ on Battery Management Systems (BMS). These were displayed at Auto Expo 2020. Having selected India as the exclusive manufacturing base, the company wants to meet both domestic and global sets of customer requirements.

q Revenue targets and challenges

Through its mix of e-components, the company has raised its pre-Covid-19 projection of 10-15 per cent revenue contribution from the EV segment to an estimated 25-30 per cent. This translates into a total turnover of approximately Rs.100 crore, Vasdev clarified, at an estimated seven to eight per cent of the overall turnover for the company. Flash has drawn an aggressive investment

plan with an additional investment outlay of Rs.150 crore over the next two years. To attain these targets, the company must overcome the semiconductor chip shortage that is a bottleneck for its peers globally too. I think by mid-2023, things should reach a certain normalisation level and then we expect the next growth phase of Flash to commence, opined Vasdev. “We will be able to go much higher on our current production volumes but are nowhere close to the scale needed to fulfil the order book as a result of the shortages,” he said. The company hopes to further tap into the design work flow of its customers as it does on electronics and BLDC motors out sourced to it for manufacturing.

q Diverse offerings

With partner Askoll, the company is developing custom products in the lower segments. Claimed to be at various customers for testing, it has proposed an option to exit the respective current motor designs. This , in effect, means that the customers are working towards incorporating the Askoll motor. Vasdev explained, the company is on the verge of setting up those lines which will only be

operational by the latter part of 2024 given that the current priorities centre around India-specific segments to fulfil a large order book. This entails work on a low-speed EV variant. With partner Enerstone, the company is developing a new Battery Management System (BMS) at its Pune plant to align with the new battery norms introduced by the Government of India as well as to meet global customer requirements. “It is a big boost to our plans because Enerstone is already meeting the majority of those requirements being an European company,” he mentioned. This will make Flash Electronics the first company in India to meet the complete requirements as per the BMS specifications laid down by the government and expected to come into force by April 2023. The company, as per Vasdev, will be in a position to comply with the stipulated norms as early as January 2023. Hinting at a further diversification, Vasdev concluded, “We are going to go much beyond the EV range of products to various other technologies. The company is looking at entering the advanced stages of artificial intelligence and telematics in the future too.” ACI

High Voltage Performance e-Motor controllers.

Upfront | Exclusive

EV Capabilities And Beyond

In an upfront conversation, Sanjeev Vasdev - Managing Director at Flash Electronics (India) Pvt. Ltd. spoke to Ashish Bhatia about the company strengthening its capabilities for realising projected growth.

Q. What is the direct bearing of the collaboration with Polish Group Elimen on your growth aspirations across the PV and CV segments?

A. Flash is one of the first companies in India to have started producing parts for electric two-wheelers. And we are already having a large number of parts right down from a traction motor to a controller to a DC-DC converter, and private charging station cooling applications. Having invested in EVs a lot over the last few years and also embarking on a very aggressive growth plan moving forward, we wanted to expand our product horizon to passenger cars and buses. The collaboration with Elimen makes us a company where we can start producing a motor and a controller not only for two-wheelers but also for e-buses. We are going to be the only company in India to be producing motors from a four-kiloWatt or two-three kiloWatt range up to a 300 kW range along with high-end electronics. That is why, we are very excited about this development

We are going to be the only company in India to be producing motors from a fourkiloWatt or two-three kiloWatt range up to a 300 kW range along with high-end electronics.

Upfront | Exclusive

itself for the segments relevant to you?

A. Within the first year of the launch of the EV product, there was a delay due to Covid-19. We had expected to touch a turnover of Rs.100 crore coming in from the segment and which will constitute nearly seven to eight per cent of our overall turnover. We now expect nearly 25-30 per cent of our turnover to come in from EVs by 2025 so I’d like to believe we are right on track and maybe a little ahead of our projections.

Q. How strong has the recovery been on a YTD basis and in the last fiscal when compared to previous fiscals?

with Elimen, a very strong company on the design front.

Based out of Poland, they have highly specialised engineers, a couple of them PhD holders, so we have a very strong connection with them now. And they are now going to be developing all these new-generation products to meet the requirements of our OEM customers with some of our products already being tested by a few domestic OEMs in the PV and CV segments. It’s an exciting period for us. Elimen has been our second collaboration in this field with the partnership earlier on in 2021, where we tied up with a French company called Energy Stone for Battery Management Systems (BMS). In fact, we displayed the products from that collaboration at Auto Expo 202. Flash also picked up significant minority equity in the company in September 2021. We are now developing products for various global requirements and India is going to be an exclusive manufacturing base. So India will meet not only the domestic requirements but also the global requirements.

Q. When we last met at Auto Expo 2020, you were buoyant about boosting EV revenues by 202425 and then came Covid-19. Has that altered the course of your projections (~10-15 per cent from EVs back then) and the execution

A. Well, if I look at the first half of FY23 which we ended in September 2022, our profitability has gone up by 3x compared to last year (H1FY22). Our sales have gone up by about 48 per cent and we are very well on the verge of recovery. For us, we have lost the people. But I think, we have no more challenges as far as the sales side is concerned. But yes, challenges are there on the execution front because of the semiconductor shortages. In our opinion, we feel that the next threequarters should see the semiconductors issue being normalised. The situation is improving gradually but of course, not to the extent we would like it to. I think by mid-2023 things should reach a certain normalisation level and then we expect the next growth phase of Flash to commence. We will be able to go much higher on our current production volumes but are nowhere close to the

scale needed to fulfil the order book as a result of the shortages.

Q. How have the technical integrations with Italy-based Askoll and Francebased, efficient energy-storage company Enerstone progressed? Are there any more partners that have come on board since then?

A. With Askoll, we are now developing certain customised products in the lower segments. These products are already at various customers for testing and we would like you to know, the customers have the option to come out of the current design of the motor they are using and work towards the Askoll motor. That product currently is not being produced in India yet. We are on the verge of setting up those lines which will only be in the latter part of 2024 because we are concentrating more on India-specific segments to fulfil a large order book right now. That will be on a low-speed EV variant. There’s too much current development going on with Enerstone with the development of the new battery BMS against the backdrop of the new battery norms which have come in by the Government. It is a big boost to our plans because Enerstone is already meeting the majority of those requirements being a

We will be among the first in India again to meet the complete requirements as per the BMS rules specified by the government which has a deadline of April 2023 to be met.

We now expect nearly 25-30 per cent of our turnover to come in from EVs so I’d like to believe we are right on track and maybe a little ahead of our projections.

European company. We will be among the first in India again to meet the complete requirements as per the BMS rules specified by the government which has a deadline of April 2023 to be met. I think we will be ready with that complete requirement model as early as January 2023.

Q. Is the retrofit segment of interest to you? What is the current progress level on the design front of EV motors and controllers?

A. No, the retrofit market is not a business case for us. Currently, we are designing all the electronics and the BLDC motors given to us for manufacturing. And now some are being designed by our collaborator Elimen. So, we have various business models in place, and today customers are also taking up a lot of design work. We would like Flash to produce this part of the business set of requirements. We are very open to such collaborations, and it’s a win-win situation between the customer and us. When we work on such models, we follow a very specific flow.

Q. Is there an interest in the afterlife of batteries given the demand for energy storage systems?

A. We are not looking at any recycling at this moment in time because that is a different domain altogether. We want

Upfront | Exclusive

to remain very specialised. We’ve been manufacturing electronic products for the past three decades, and we want to stick to our expertise. To make sure that we take this to the next level. Our presence in the passenger car market was negligible. Whatever passenger car market presence we had was mainly attributed to our German subsidiary. Out of India, it was next to negligible and it was either through one of the big boys where we supplied certain components to them. Today it is easier as everything has changed for us. We will be building our exposure to the PV and CV segment to a respectable scale.

Q. How do you look at your foray into purebred CVs in a cyclical upturn as of the present?

A. We are looking at electric buses. We feel that with the current set of problems, many cities are weighed down by high pollution levels. There is a business case for us and we see white spaces that can be addressed. The collaboration with Elimen introduces us to that range of motors, for instance, the 300 kW capacity and above. This will give us a complete upper edge over the competition in terms of meeting that demand with a made-in-India focus. Flash has really focused on the made-in-India initiative of the government and I will say that we follow that in letter and spirit.

Q. A word on International markets like California finding it hard to tune the power grids to meet the daily EV needs? This is when ~30 per cent of their needs are met by renewable energy.

A. You’re absolutely right! I think there are many technological changes to be undergone before we are able to shift to a particular system which will be widely accepted by every manufacturer on the charging side. Things will get more clear over the next couple of years. Right now, I think we are not fully equipped at all to come anywhere near the requirement of the charging infrastructure that should have been in place.

Q. What is your assessment of the market sentiment with a healthy festive season and high investments committed by the components segment alone?

A. The PLI scheme is more for the OEMs, right? You cannot have a double benefit doled out to the OEM as well as to the auto suppliers for the same, its the product owner that can claim the benefit. I think PLI will mainly benefit those exporting their products or selling to customers who are in turn not covered under the PLI scheme. We haven’t qualified for PLI or have not opted for it. I think we have various state subsidies and incentives which have been given to us. We are quite satisfied with those.

Right now, I think we are not fully equipped at all to come anywhere near the requirement of the charging infrastructure that should have been in place.

I think PLI will mainly benefit those exporting their products or selling to customers who are in turn not covered under the PLI scheme.

When it comes to EVs specifically, there are a lot of supplier investments that the customers value. It is backed by a long-term understanding.

Upfront | Exclusive

Especially the new technologies, for whatever ambiguities there are currently. Some of them are there and they should be thrashed out so the sub suppliers know exactly what they need to do to benefit from, setting up an industry in a particular state.

Q. Do you wish for the entry barrier to be lowered under the PLI scheme?

A. Our investments are going to cross Rs.250 crore. We didn’t see any value in those schemes. You can’t when it’s not a double incentive. These incentives should not last forever as they are value-based incentives. They can be there for one year, two years, three years, or four years depending on the sustainability. It’s the right approach for the government for kickstarting the investment cycles. I cannot build up a business model based only on certain incentives. It has to be sustainable without incentives.

Q. Is there a level playing field in the OEM and supplier contracts?

A. I think OEMs have been very supportive. We have really had a lot of support from all our customers. We really value the relationship and I think it is something which can only develop more, going forward. When it comes to EVs specifically, there are a lot of supplier investments that the customers value. It is backed by a long-term understanding.

Q. Any particular trends that have the potential to trickle in maybe in the next half a decade or so?

A. I think clean fuel is going to be

continuously evolving. And I think the next step is going to be hydrogen for the country. Companies like Flash have already started working on products for hydrogen vehicles. So that is done through our German subsidiary, their R&D vertical is working specifically on such products. You will see a lot more products coming in the near future. And India can also be a major manufacturing hub for larger auto components suppliers worldwide for those kinds of products out of India because the cost competitiveness will be required for such products.

Q. A word on the government interventions on your wishlist?

A. The Centre needs to define clearly the infrastructure roadmap. But I think the state governments also need to define it from their perspective. Especially the new technologies, for whatever ambiguities there are currently. Some of them are there and they should be thrashed out so the sub suppliers know exactly what they need to do to benefit from, setting up an industry in a particular state. And so I think clarity is very important.

Q. To sum it up, what are the growth and challenge areas for the foreseeable future for Flash Electronics?

A. I think our challenge right now is only semiconductors. So I think, other than semiconductors, I don’t see any challenges that are not applicable to everyone, globally. Secondly, we have an exciting time ahead as far as flash is concerned in terms of new product launches and new product announcements. We will make a few more announcements under the new partnerships spoken of. We are going to go much beyond the EV range of products to various others, in the advanced stages of artificial intelligence and telematics in the future. ACI

We are going to go much beyond the EV range of products to various others, in the advanced stages of artificial intelligence and telematics in the future.

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FPT Industrial India Foray

FPT Industrial, the IVECO Group company has grand plans for India. Prateek Pardeshi assesses the gas engine as the foundation of this strategy.

Fiat Powertrain Technologies (FPT) Industrial was formed as a combined entity with the best of IVECO, CASE IH, and NEW HOLLAND engine, transmission, and axle technology coming together. It is known to have leveraged the expertise and capacity to be at the forefront of new engine technology. With patented technology for Direct-Injection Diesel engines, the company traces its roots back to 1934. In 1938, the first turbocharger was used with a diesel truck engine. The company’s presence in India can also be traced to brands like CNH Industrial in 2013. With its recent partnership on the Blue Energy Motors, for the 5528 LNG truck, the company with a projected capacity of 10,000 units per annum has set the ball rolling again.

@Prateek2101

Prateek Pardeshi

N67 NG Engine

Torque: 1000 Nm

Power: 280 hp

Weight: 548 kg

The company is known to have tasted its first success with alternative fuel technology when it introduced Compressed Natural Gas (CNG) engines on Light Commercial Vehicles (LCVs), in 2002. The agreement that has the company own a minority stake in Blue Energy Commercial Vehicles Pvt. Ltd., a zero-emission truck technology company headquartered in Pune, Maharashtra is the base it hopes to build upon. Commenting on the India foray, Sylvain Blaise, President-Powertrain Business Unit, Iveco Group, said, “It is a great honour for us to serve Blue Energy Motors with our N67 NG supply engine

agreement, and at the same time enlarge the scope of our partnership confirming our commitment as a technology provider to fully exploit our capability in alternative propulsions.” This agreement is the first step in a potential long-term partnership, based on the specific characteristics of the Indian commercial transport market.

q Committed to growth

During the recent ‘BEYOND - Iveco Group Days,’ FPT Industrial announced the official establishment of the first Blue Energy Motors assembly plant at Chakan, in Pune, for the production of the first

LNG trucks. The investment is a part of a more ambitious plan to play a key role in India’s decarbonisation aspiration. Although the collaboration is currently focused on NG fuel applications, the company doesn’t rule out the support and joint development of future e-mobility related projects.

q Global benchmarking

Compared to Europe, North America, and China, engines in India are often deemed underpowered. It is only recently that the power-to-weight ratio is being revisited with engines capable of developing 300 hp at 2300 rpm and

In-line six-cylinder

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460 hp at about 1900 rpm. A leading OEM had demonstrated performance variants of 1000 hp engine on its tractor in the distant past. This is a long way from the erstwhile 180 hp heavy-duty trucks. With roadtrains being looked at as a viable option for India and LNG engines optimised to munch 1000 km plus miles, FPT Industrial wants to offer an ideal solution to start off with. It is claimed to have cracked a lower Total Cost of Ownership (TCO) with the N67, a six-cylinder 6.7-litre engine that is claimed to develop 280 hp and a peak rated 1000 Nm torque.

This was possible after a two-year development cycle with the added USP of the engine being compatible with CNG and bio-methane. Blaise confirmed, the company has pioneered this type of technology in Europe where it was able to build a market-leading position. He explained, the company has leveraged this and over the last 18-24 months adapted the technology with specific tweaks to suit the needs in India and still make it at par with the diesel engines in operations.

q Why LNG?

China launched LNG trucks for the first time in 2015-16. They were estimated to have sold 15,000 trucks in the first year, considering the market was much larger. Today they are selling 150,000 trucks representing 14 per cent of the market. This was made possible only because the LNG was made available around the coastline, not so much inland. Okay. If you use that as an example, in India, we believe the operating economics of LNG is superior to China. So depending upon the proliferation of the LNG network with an estimated 1,000 outlets expected to cater to the demand over the next five years, the company, found it fit to commercialise a new range of alternative solutions first showcased at Fenatran 2022, held in São Paulo Expo, Brazil. The engine range consists of the F1, NEF and CURSOR models from a 97-600 hp capacity in options of LNG, CNG, Diesel and Bio-methane.

q India Outlay

To attain economies of scale in India, the company will first test the waters with CBUs imported to India from Italy. Based on the acceptance in the market, the company could look at assembly and eventually higher localisation content. Blaise mentioned that the industrial setup in India is quality-conscious courtesy of a full ecosystem around the automotive and truck industry.

So, for FPT Industrial, to start in India, was akin to a plug-and-play effort which allowed it to scale up its footprint, to begin with. In the next phase of growth leading up to 100 per cent localisation over the long term, he explained, that progress depends on the maturity of the market and the volumes the company is able to build up over time. “We’re already leveraging some Indian local sourcing for starters and hope to build on it as we go ahead,” he concluded without delving into specifics on the outlay of the engine business leaving it for another opportune time. ACI

Trending Chinese LED Ambient Lights

Made in China ambient lights are finding takers in the Indian aftermarket. Ashish Bhatia and Prateek Pardeshi look at their growing attraction.

The bug of customisation has bitten Indian vehicle owners for long. So much so, that even a new vehicle on delivery instead of making its way to the owner’s parking lot finds itself being driven into the workshops offering modifications or enhancements. Here interior ambient lights have come to become a big rage with owners of even the top-of-the-line, fullyloaded premium Sports Utility Vehicles as a testimony. They prefer to roll down their fully air-conditioned vehicles to bask in the glory of unique interiors as they seek gratification from onlookers. Despite the growing calls for using local products available in the market, the plug-play solutions on offer from Chinese manufacturers seem to be a hit with enthusiasts. Even the high import duties and stringent customs checks have seemingly failed to deter their widespread distribution. On the whole, China leads the imports accounting for ~30 per cent of the total imports ahead of Germany (11 per cent) by a big margin. FY2022 also marked a 33 per cent increase in imports on a Yearover-Year (YoY) basis. Electricals and Electronics as a whole accounted for 14 per cent with interiors (non-electronics) at eight per cent.

Perhaps attributed to the quality of make and the fit and finish by local workshops here in India, there is enough and more uptake in the aftermarket. The Indian aftermarket is pegged at an estimated Rs.74,203 crore (USD 10 bn) and witnessed a steady 15 per cent growth in FY2022. This compared to Rs.64,524 crore (USD 8.7 bn) in the previous fiscal.

Sunjay Kapur, President of the Auto Component Manufacturers Association (ACMA) has in the recent past hailed the contribution of the aftermarket to the record turnover registered by the sector in FY2022. The growing traction in vehicle sales backed by the increased movement of vehicles postpandemic coupled with the surge in demand for used vehicles is expected to hold the aftermarket in good stead ahead too. It will be interesting

Ashish Bhatia

@atashishbhatia @Prateek2101

Prateek Pardeshi

to see the developments going forward as the Product Linked Incentive (PLI) scheme trickles in over the next half a decade. The market is also shaping up with the emergence of new sales channels like online e-tailing and Multi Branded Outlets (MOBOs) and the growing trend of Do It Yourself (DIY) boosting the demand for such lights.

q SellingUnique Proposition

CARDI Tech, Guangzhou Cardi Auto Parts Co. Ltd. (Cardi) have been in the market for years. Right from the first generation of pipe-type LEDs where the finished product started as an aftermarket accessory to the newest generation of Cardi Symphony Streamer K4 ambient LEDs. The new generation light looks sleek enough and can be mistaken for an OEM finished product if not looked at closely. The K4 lights have gained traction in just a matter

of around four months of going on sale. The lights can be installed on almost all types of vehicles having 12V batteries both in the PV and CV segments. Imagine a truck or tourers like the new Force URBANIA featuring the K4 or similar options. These ambient lights come with Bluetooth-enabled connectivity.

The smartphone app. called ‘LED Lamp’ is readily available on Android and iOS devices. This mobile app. helps to change patterns, and flow of lights, with nearly 64 colour tones to choose from depending upon customer preferences. These lights come with universal fitments and can be cut at any length depending on the chosen circumference and detailing. These are its Unique Selling Propositions (USPs). Moreover, the cardi lights also come with pieces ranging from four- to 22. A customer recently opted for a 22-piece set of lights for a top-of-the-line SUV model. Their use included illuminating the surface underneath the glove box, on the dashboard, door handles, bottle holder, within the speaker assembly, and under the seat to give a perspective. A complete ambient illumination minimises the darkness inside the cabin which is the larger objective beyond just aesthetics. Moreover, these lights are bright enough, with a glow effect enabling

them to hold their own even in broad daylight. One can procure these at a ballpark figure of Rs.13,000 onwards depending upon the region of purchase. They come with a one-year replacement warranty like at DJ’s Automotive, Delhi. Imported from China, the life of the product is estimated at ~10,000 hours, informed Dheeraj Kumar of the company.

q Installation

The installation of this light takes an estimated five to six hours. While there are enough use cases for DIY, it is not as simple as sticking a LED strip. The installation is a bit tricky. These lights are installed without tampering with

the OE fit and finish of the wiring harness. They are connected to the headlight switch using clips. These can operate on various other electric utilities like the central locking system, interior lighting etc. Alternatively, a dedicated switch on the dashboard can govern these. The LED strips are sleek and easily sneak into the panel cavity. Each strip has a control circuit that goes onto the door trim. For installation of the bottle holder lights, one needs to drill a hole to hide it from direct exposure. This lends a passive fade-out effect. The ambient LEDs do take the interior aesthetics a notch higher for those looking at custom options with a warranty. ACI

Sunjay Kapur, President of the Auto Component Manufacturers Association (ACMA)

special reads

The Automotive New Product Development (NPD) ecosystem is one of the most complex environments. Suhas Kini writes how a finished automobile at the backend has manufacturers toiling away to achieve a complex and audacious end goal.

The Components

The New Product Development (NPD) comes with its share of challenges. This complexity can be attributed to factors like many parts developed by different auto component manufacturers that must not only come together in the final vehicle, but also function together flawlessly as a system. While developing auto components is important, it is equally important to deliver them through a process that is robust, precise, and repeatable at scale. Thus, while the end customer gets to see a stylish highperformance automobile, what they don’t see is the back end where numerous auto component manufacturers toil to achieve this complex and audacious goal.

q A saga of skips and misses

The automotive landscape is changing. Electric Vehicles (EVs) are

Conundrum

Suhas Kini

Conundrum

predicted to take over the industry - IC engines will eventually become extinct. The advent of EVs and the elimination of the IC engine, the most complex part of erstwhile vehicle design, has democratised the industry. With entry barriers being razed to the ground and new EV players entering with advanced technologies, the existing auto OEMs are feeling the heat like never before, to be the first to market in the EV segment! As a result, there is an urgency to move amongst the OEMs, from the drawing board to the market, at a faster rate than before.

There is pressure from the top management to move the project to the tooling development

q Four simple rules to increase NPD productivity

The best an auto component manufacturer can do is to ensure that they provide the fastest response to OEMs from their end. This will help make them a “Preferred Supplier”. In order to achieve this, they are required to take full control of the flow within their NPD organisations, irrespective of what is happening externally. The solution for faster lead times is to follow these four simple rules:

1. Respect Full kits/Design Gates

Do not start the development phase of a project until the full kit of interacting designs has been completed and verified (“gating” rules). This way, there will be minimal interruptions (and iterations) during development. Managers are aware of the benefits of gate control, but they break this rule owing to time pressure. However, if the design phase for an auto component can be completed quickly, it would be easier to abide by the gating rules.

2. Limit WIP with clear priority

The time taken to complete the design phase can be reduced if multi-tasking can be avoided, and the designers are able to work uninterrupted to the best extent possible. And this is possible if Work in Progress (WIP) is limited, and clear priority is assigned to all the tasks. This can bring the focus back to the closure of projects in the desired sequence and quicker issue resolution. The outcome as a result would be a reduction in lead times as well as higher capacity in design!

3. Follow high-frequency management

To speed up the process further, the management must observe the workflow at a pre-defined frequency (daily at the execution level, weekly at the department and or section level, etc.), and proactively intervene to address any interruption to the flow. Take needed decisions, provide help, and resolve any collaboration issues.

4. Buffer the project and not the tasks

Traditional project planning, with its emphasis on task deadlines, hides buffers in each task. These buffers usually get wasted during the execution phase. A changed planning approach would be where the tasks are first stripped of their buffers to get an aggressive estimate of project completion. Then the information about the buffers is used intelligently to predict the most likely completion date and Expected Time of Completion (ETC). This visibility into the ETC at any given time can give out periodic signals that will help auto component manufacturing companies’ top management understand where their intervention may be needed.

special reads

phase. This often prompts OEMs to persuade vendors to concurrently start development with final tooling, even as the prototype is being finalised. The assumption is that this will help save time. This wishful thinking, however, never materialises. The components manufacturers proceed to hard tooling only to realise later that there are glaring gaps in design and or cost estimations. Any changes made to the hard tools are expensive and consume a lot of time. This leads to a series of actions in the advanced stages of development to minimise changes in design or even attempt to get some leeway from OEMs to accommodate whatever best can be achieved.

q The juggernaut rolls

The situation is aggravated by the fact that any change made in an auto component can have a big impact on other interfacing components in a vehicle. One small late change in a component can therefore create urgencies for many auto-component vendors supplying for the same OEM. Invariably, the auto component manufacturers’ engineering teams find themselves juggling urgencies in the development work of different OEMs that they cater to. The Result – elapsed time in part development increases by leaps and bounds.

Also, each component may have multiple child parts coming from different (tier2) vendors - electrical, mechanical or electronics. The adhoc urgencies and escalations experienced by the component vendors trickle down to their tier2 vendors in turn supplying the child parts. This leads to de-synchronisation in the arrival of

child parts and consequently leads to delayed testing. But since they have to meet the timeline expectations of OEMs, components are often mass-produced prior to completion of testing and full production stabilisation. Not only does this lead to a loss of production capacity, but many issues continue to remain unresolved since both the design and development teams are now forced to shift their attention to other new development projects.

q What managers think!

This perpetual struggle of balancing the coordination issues and frequent delays makes the managers yearn for more detailed planning and scheduling. They also tend to believe

that design mistakes are due to a lack of skill and or experience of designers. Frustratingly, however robust the plans are, and however skilled the designers are, neither of these helps the stakeholders in sticking to their plans or preventing re-work in design. This is because a large proportion of the planned timelines are under the ambit of OEMs. Variability in the timeline of a single task tends to have a cascading effect on all the subsequent tasks of the auto-component NPD team. Even a highly skilled designer will tend to have skips and misses in an environment of expediting citing urgencies. Under these circumstances, there must be a way out!

q Conclusion

Adopt these four simple rules of having a design full kit before development,

special reads

control WIP, performing high-frequency management, and monitoring projects ETC. In this manner, one can experience the lead time for NPD going down drastically (50 per cent improvement, at the least) while also leading to significantly better output (more than 100 per cent) in your organisation! ACI

Suhas Kini (XLRI) is a Project Manager with Vector Consulting Group. The company consults with auto, and auto component companies to solve chronic industry problems using a systems approach and by applying first principles thinking.

The opinions expressed within the content are solely the author’s and do not necessarily reflect the opinions of ACI Magazine.

Fast-paced Developments

At BorgWarner

BorgWarner is taking a holistic approach to emobility. Ashish Bhatia checks on the latest in creating a pull for its offerings.

The recent BorgWarner developments are centred around emobility. These are fast-paced developments. From inaugurating new plants to bagging new orders to new acquisitions to the delivery of critical components, the company has also worked on building a robust infrastructure. In India, the company inaugurated a new plant in Thiruvallur District near Chennai. Most recently, the company at its sites celebrated the production of ten lakh Inverters at the Suzhou facility and the 1.35 crore Viper power switches at the Singapore facility. It also won the contract for the delivery of battery systems for electric commercial vehicle systems. The company secured the contract for two additional high-voltage coolant heater technology wins. The company also acquired Rhombus Energy Solutions. It then went on to build the supporting infrastructure for fastcharging stations in Italy. Such comprehensive and wide ranging efforts meant the company instilled confidence in its customers. It secure the second Integrated Drive Module Award with the Hyundai Motor Company, for example.

Ashish Bhatia

@atashishbhatia

q Capacity addition

BorgWarner inaugurated a new plant in the Thiruvallur district near Chennai, India in September 2022. The added capacity with a total expanse of 83,600 sq. ft. brings in manufacturing and assembling capabilities with additional warehouse space to cater to the order book. Planned to be near its existing facility, the new plant is expected to help increase production efficiency and further strengthen the company’s dominance in the region. “The current expansion was necessary. We needed the extra space to meet our increasing customer demand in India as a major local manufacturer,” said Pei Wang, Vice President and General Manager of Asia, BorgWarner Morse Systems . He explained that the need to have two plants in the same vicinity stemmed from the need to optimise logistics and improve the supply chain. At the new facility, the focus is on the assembly of BorgWarner’s highperformance engine control and Variable Camshaft Timing (VCT) systems. The latter is claimed to optimise efficiency and contribute to emission reductions in the ICE range of vehicles. This is in line with the larger vision of contributing to sustainable mobility. The plant besides catering to the demand from India will also be a hub for the entire Asian market. It is a step in the direction of enhancing

localised sourcing and a high-degree, localised manufacturing setup crucial to building a competitive edge in the Indian market.

q Production milestones

It’s raining milestones at BorgWarner across two production facilities. The Suzhou facility produced its 10,00,000th inverter. The Singapore facility

produced its 13,500,000th Viper power switch. These milestones are deemed to have underscored BorgWarner’s strong capabilities in innovation and production in line with the ‘Charging Forward’ strategy aimed at driving the trend of electrification in the global automotive industry. “We are proud of these milestones that our facilities have achieved. This emphasises the superior performance and premium quality that our e-drive products deliver and showcases our employees’ teamwork and professionalism,” stated Dr Stefan Demmerle, President and General Manager, BorgWarner PowerDrive Systems. “Moving forward, we will continue to invest in innovation and development for new high-value product technologies, optimal production processes, and satisfied customers,” he mentioned. The Singapore facility began producing small batches of the firstgeneration Viper power switches in 2014. The Suzhou facility has produced more than 1 million inverters since September 2017 when it rolled off its line the very first inverter. A testimony to realising economies of scale. The success is known

At the new plant - (LtoR): R.Murali, Plant Manager and Director, BorgWarner Morse Systems India, Olivier Diss - VP-HR, BorgWarner Morse Systems, KW Choi, Plant manager, BorgWarner, Korea and Mishima Kunihiko, Plant Head.

Globe Scan

Magnet (IPM) electric motor of 146mm stator outer diameter equipped with High Voltage Hairpin (HVH) technology claimed to offer a high power density and efficiency. Suited to 400V systems, it is claimed to churn out a peak power output of 135kW, with the modular design making it possible to tweak power and torque output for custom requirements. Besides the technology, the order win can also be attributed to its prior iDM win with HMC on another A-segment electric vehicle besides a longstanding relationship shared by the two companies. “Our partnership with the Hyundai Motor Company spans two decades, and we’re delighted to continue our relationship by supplying our latest technology for the company’s newest electrification project,” said Dr Demmerle. “Our iDM proved an ideal fit for the electric propulsion system during our first EV collaboration, and we look forward to contributing industryleading electrification solutions to assist the company in meeting its future sustainability goals,” he elaborated.

to have instilled the confidence to launch the Suzhou Plant Phase II and expand the inverter production capacity. This capacity enhancement makes the facility BorgWarner’s second-largest Viper production site around the globe (the Singapore site being the largest).

The inverters are said to be unique given their application of silicon carbide power switch to an 800V platform using the patented Viper dual-sided cooling technology. The enhanced cooling as a result aids the power switch in the reducing the use of silicon carbide materials. The company claims, it has helped deliver improved performance and system efficiency compared to conventional silicon-based inverters. The focus is on developing inverter products featuring higher performance, reliability, and scalability with a strong value proposition.

q New advancements and orders

The iDM146 integrated Drive Module

(iDM) got selected by Hyundai Motor Company (HMC) to power an additional A-segment EV platform. The production is scheduled to commence in the third quarter of 2024 (Q3-2024). As per Dr Stefan Demmerle, President and General Manager, BorgWarner PowerDrive Systems, the new business is a result of the advanced iDM technology. It

The company also bagged business with a global automaker and one Chinese automaker for its advanced High-Voltage Coolant Heater (HVCH) technology. The 800V HVCH is said to complement the existing 400V coolant heater. It features enhanced electronics and is claimed to be a reliable design. “We are honoured to

BorgWarner_ integrated Drive Module.

High Voltage Coolant Heater for two global OEM customers.

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supply our innovative heater technology to these two major automakers, further supporting our commitment to meeting the latest clean mobility trends,” averred Joe Fadool, President and General Manager, BorgWarner Emissions, Thermal and Turbo Systems. The extensive range of advanced battery and cabin heater systems is deemed critical to improving the battery-operated range as it is claimed to keep the battery temperature at an optimal level thereby offering an ideal interior climate for passenger comfort. In addition, they allow comfortable cabin temperatures to be generated in a short amount of time enabling a better driving and passenger experience. The coolant heaters feature a compact modular design with reduced packaging size and weight.

By offering consistent temperature distribution inside the battery pack and its cells, these heaters can be used for improving battery energy performance in EVs and HEVs. With high thermal power density and a fast response time due to their low thermal mass, these heaters also extend pure electric driving range as they use less power from the battery. In the HVCH, the latest Thick Film Element (TFE) technology is known to have been used. It is to deliver a high degree of flexibility in terms of the dimension

High energy flat battery system.

and size of the heating elements. Developed to meet the demand for high-performance systems vulnerable to heating up, the HVCH heating elements are immersed in coolant to aid an efficient heat transfer. These are suited to applications with supply voltages between 250 and 800 volts, with a power range of three to 10 kW. The new EV models equipped with the 800V and 400V HVCH can be expected to go into production by the end of 2023 and early 2024, respectively.

In another significant development, BorgWarner showcased its commercial vehicle electrification portfolio at IAA Transportation 2022 in Hanover, Germany. Dr Paul Farrell, Executive Vice President and Chief Strategy Officer, and Harry Husted, Chief Technology Officer

Akasol battery pack.

drew attention to the ‘Charging Forward’ business strategy with the electric Commercial Vehicle (e-CV) innovations. The new lineup signifies the streamlining electrification of commercial vehicles. At BorgWarner, it encompasses electric propulsion including battery systems, electric motors, integrated drive modules, power electronics, and thermal management solutions. The company also showcased the high-energy flat battery system said to feature what the company refers to as a novel flat module architecture. With a less than 120mm height, it can adapt to the underbody architectures of electrified Light Commercial Vehicles (LCVs) and buses. A new modular high-voltage e-Fan system can be combined with both existing cooling fans or new customised fan designs in order to achieve the highest level of efficiency and the lowest noise output. The heavy-duty electric motor works in combination with an inverter is to provide a continuous output of 40kW between 550V and 850V to cool components such as the fuel cell, traction motor, electric brake, or the battery pack in battery-electric or fuel-cell commercial vehicles as per company claims. It is specifically designed to offer reliable long-term operation in extreme conditions. Medium- and Heavy-Duty (M&HCVs) trucks and off-highway applications are claimed to already have been made available to customers. Others are being subjected to customisations.

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vehicle portfolio in North America and complements our existing European charging business. This transaction supports our Charging Forward strategy and strengthens our electric vehicle positioning as we look to power the entire propulsion system from the grid to wheels,” states Frédéric Lissalde, President and CEO of BorgWarner. “As a supplier to the automotive and commercial vehicle markets, we are not only delivering innovative technology for electric drivetrains, but we are also focused on supporting certain key elements of the infrastructure for electric mobility, including charging,” he emphasised.

q A stronger ecosystem

BorgWarner acquired Rhombus Energy Solutions of San Diego, California. The new acquisition gives the company access to Vehicle-to-Grid (V2G) and Underwriters Laboratorycertified charging. The latter is known to supply the patented technology to EV OEMs, including Proterra, and charging and grid service providers.

Notably, the estimated enterprise value of up to USD 185 million in this transaction is said to have been funded primarily with cash balances. While USD 130 million was delivered at closing, USD 55 million could be paid in the form of contingent payments over a three-year timespan. “The technology that Rhombus brings expands BorgWarner’s electric

The company has installed the first units of a new fast-charging station. The Iperion-120 is known to have been installed by the Italian service provider Route220. The DC device is claimed to benefit both users and operators alike with its fast-charge options, and ease of use. It is claimed to be compatibile, versatile and offer longevity. “We are very pleased to see our fast-charging solution in operation,” said Davide Girelli, Vice President and General Manager, BorgWarner Morse Systems. The DC fast-charger, Iperion-120, is equipped for various applications to meet the different demands of charging station operators, transport companies, and other utilities. It is capable of charging one car very quickly at 120 kW or charging two vehicles in parallel at a peak power of 60 kW each with high efficiency levels and optimal load management. It boasts of an output voltage up to 900V and can charge 800V BEVs. It can also double up for power requirements of next generation of batteries. Compliant with standard European charging protocols it brings in standardisation on different types of vehicles and plug configurations. The company assures an average life span of 10-years on the charging station with withstanding capabilities of temperatures between (-) 30-50-degrees Celsius and up to 4,000 m altitude. It also offers a low TCO. ACI

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