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Indian electric vehicle sales to touch 10m units by 2030

Mohammed Fahad
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Indian electric vehicle sales to touch 10m units by 2030
  • Collective efforts of government policy, infrastructure development and consumer engagement will be critical in establishing India as a major player in the burgeoning global EV market.

The Indian electric vehicle (EV) market is on the cusp of rapid growth, with projections indicating sales may reach between 3 to 4 million units by 2025 and approximately 10 million units by 2030, as reported by Niveshaay.

The anticipated growth reflects a compound annual growth rate (CAGR) of 35 to 40 per cent until 2027, positioning India as a significant player in the global EV landscape.

Currently, the market landscape in India is predominantly focused on the two and three-wheeler segments, which collectively constitute about 80 per cent of the total EV market.

The concentration underscores the demand for affordable and efficient electric mobility solutions in a country where a large portion of the population relies on these types of vehicles for daily transportation.

PLI schemes

The Indian government has proactively sought to strengthen local manufacturing and diminish dependency on imports through initiatives such as the Production Linked Incentive (PLI) schemes and the reduction of customs duties on essential minerals.

According to Arvind Kothari, the Founder of Niveshaay, the balanced approach to policy formulation is essential in navigating the challenges posed by limited charging infrastructure while facilitating market development.

As consumer awareness grows and fuel prices rise, it is estimated that EVs will account for 10 to 15 per cent of new vehicle sales by 2030.

The growth trajectory includes significant advancements in electric buses, commercial vehicles, and personal transportation. Furthermore, the prediction of over two million public charging stations pan-India highlights a commitment to developing robust EV infrastructure, which is crucial for widespread adoption.

Government’s commitment

The seismic shifts in budget allocations over recent years further demonstrate the government’s commitment to enhancing the EV sector.

Funding has risen dramatically, with allocations increasing from Rs10,000 crore in FY2019-20 for the FAME II scheme to Rs19,744 crore for the Green Hydrogen mission in FY2023-24.

The Union Budget for 2024-25 includes Rs2,671.33 crore under the FAME initiative and an additional Rs500 crore earmarked for the Electric Mobility Promotion Scheme (EMPS), specifically targeting the proliferation of electric two- and three-wheelers.

Additionally, the recent expansion of the PLI scheme for automobiles to Rs3,500 crore, alongside exemptions in customs duties for crucial battery production components such as lithium and cobalt, is anticipated to enhance the affordability of electric vehicles.

The government initiatives not only promote domestic manufacturing but also pave the way for India to emerge as a formidable contender against established players in the EV market.

InMobi raises $100m in debt financing

Mohammed Fahad
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InMobi raises $100m in debt financing
  • Funding to enhance immersive and personalised experiences it offers to brands and consumers, extending well beyond traditional advertising units.
  • InMobi eyes an initial public offering in India in the latter half of next year, with aspirations of achieving a valuation of $10b.

InMobi, a prominent player in the mobile advertising network sector, has successfully secured $100 million in debt financing from MARS Growth Capital, collaboration between MUFG and Liquidity Group.

The substantial investment marks a pivotal moment for the company, propelling its ambitions in artificial intelligence (AI) development and strategic acquisitions.

According to the company, the funding is designed to enhance the immersive and personalised experiences it offers to brands and consumers, extending well beyond traditional advertising units.

The financing comes as InMobi seeks to raise new capital after a five-year hiatus; however, it has experienced a continuous influx of investment for its mobile-first content platform, Glance, from key players such as Jio and Google.

Innovative approach

Established in 2011, InMobi holds the distinction of being India’s first unicorn, a testament to its innovative approach and early market entry.

The company provides a diverse array of products, including mobile display ads, native ads, and app install campaigns; all powered by sophisticated machine learning and AI technologies to optimize ad performance.

With a global presence spanning over 165 countries, InMobi effectively connects businesses to their target audiences across various mobile platforms, thus driving user acquisition and engagement.

Headquartered in Singapore, InMobi also has a significant operational base in San Francisco and maintains a worldwide footprint.

Naveen Tewari, CEO of InMobi, articulated the company’s commitment to innovation, stating, “AI is the cornerstone of our technology. With MARS Growth Capital’s support, we can accelerate our efforts to revolutionise digital interactions and advertising.”

Looking ahead, media reports suggest that InMobi is preparing for an initial public offering (IPO) in India in the latter half of next year, with aspirations of achieving a valuation of $10 billion.

Furthermore, the company plans to relocate its domicile from Singapore back to India in the coming months, reinforcing its strong ties to its home market.

India eyes electronics sector to be worth $500b by 2030

Ana Mary Joseph
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India eyes electronics sector to be worth $500b by 2030
  • Indian administration has already approved investments exceeding $15b in semiconductor initiatives.

In a significant address at a chip conference on the outskirts of New Delhi, Prime Minister Narendra Modi articulated a bold vision for India’s technological future, asserting the nation’s ambition to elevate its electronics sector to a staggering $500 billion by the end of the decade.

The proclamation underscores India’s strategic intent to position itself as a global hub for semiconductor manufacturing, a critical component in an increasingly digital and interconnected world.

Currently, India’s electronics market is valued at approximately $155 billion, presenting a substantial opportunity for growth.

Modi′s government is actively courting chipmakers, emulating successful strategies that have attracted major players like Apple Inc., which has committed to assembling $14 billion worth of iPhones in India.

The Indian administration has already approved investments exceeding $15 billion in semiconductor initiatives, signaling a robust commitment to fostering this vital sector.

Geopolitical tensions

Notable projects include TataGroup′s proposal for the country′s first significant chip manufacturing plant and Micron Technology Inc.′s planned $2.75 billion assembly facility in Gujarat, Modi’s home state.

Additionally, Israel’s Tower Semiconductor Ltd. is exploring a partnership with billionaire Gautam Adani to establish a $10 billion fabrication plant in western India.

Larsen & Toubro Ltd (L&T), a prominent Indian multinational operating across various sectors from technology to construction, has announced a strategic investment of more than $300 million to establish a fabless semiconductor company in India.

The urgency of expanding semiconductor production capabilities in India cannot be overstated, particularly in light of the geopolitical tensions between major global powers, notably the United States and China.

Nations seek to mitigate their dependence on foreign suppliers, especially from regions like China and Taiwan, the demand for domestic chip production has surged.

‘Right time to be in India’

Countries such as the United States, Germany, Japan, and Singapore are investing heavily to bolster their own semiconductor industries, recognising that these components are foundational to a wide array of technologies, from artificial intelligence to electric vehicles.

To facilitate this transformation, Modi said that the government has committed to providing substantial financial incentives, offering up to 50 per cent support for the establishment of semiconductor manufacturing facilities.

Such a strategic investment reflects a comprehensive understanding of the industry’s potential to foster innovation, create jobs, and enhance the nation’s technological infrastructure.

Furthermore, the collaboration with state governments underscores the importance of a unified approach, bringing together resources and expertise to achieve common goals.

By aiming for 100 per cent electronic manufacturing within the country, Modi said that India not only seeks to reduce its dependency on imports but also aims to create a robust ecosystem that can stimulate growth across multiple sectors.

“Our dream is that every device in the world will have an Indian-made chip and 100 per cent of electronic manufacturing should happen in the country,” Modi said.

Modi’s assertion that “this is the right time to be in India” reflects a broader sentiment that the country is on the cusp of a technological renaissance.

The Prime Minister’s confidence is echoed by industry leaders, including NXP Semiconductors NV CEO Kurt Sievers, who announced plans for over $1 billion in investments aimed at enhancing research and development efforts in India.

Such commitments not only validate the government’s initiatives but also highlight the potential for India to emerge as a key player in the global semiconductor landscape.

Meanwhile, Ajit Manocha, the President and CEO of SEMI, has articulated a vision for India that underscores its potential to emerge as a leading semiconductor powerhouse in Asia.

The optimistic outlook is predicated on the confluence of several pivotal factors that are now aligning to foster a robust ecosystem for semiconductor growth, not only within the nation but also on a global scale.

The burgeoning demand for semiconductors, particularly driven by advancements in artificial intelligence (AI), necessitates substantial investment in manufacturing capabilities.

150 new fabs needed

Manocha highlights that to meet the industry’s ambitious target of achieving a market valuation of $1 trillion by 2030, approximately 150 new semiconductor fabrication plants, or fabs, will be essential.

This underscores a critical juncture for India, which must accelerate its growth trajectory to capture an equitable share of this expanding market.

In response to this demand, India is poised to make significant strides with the establishment of five new semiconductor manufacturing facilities, backed by an impressive investment exceeding Rs1.52 trillion.

The investment not only signifies confidence in India’s manufacturing capabilities but also reflects a strategic commitment to cultivating a semiconductor ecosystem that can support both local and global technological advancements.

By fostering collaboration among industry stakeholders and promoting investment, India stands to enhance its position in the global semiconductor landscape.

As Manocha aptly notes, the stars are aligning, setting the stage for India to realise its ambition of becoming a key player in the semiconductor industry.

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L&T plans more than $300m to create chip company in India

Naushad K. Cherrayil
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L&T plans more than $300m to create chip company in India
  • It will spend the money over three years in a bid to capture part of the burgeoning semiconductor market.
  • Its strategy involves creating a fabless model, where the company will focus on designing and selling semiconductors while outsourcing the manufacturing.
  • Move positions L&T alongside other major Indian conglomerates in an ambitious endeavour to build a robust semiconductor industry in India.

Larsen & Toubro Ltd (L&T), a prominent Indian multinational operating across various sectors from technology to construction, has announced a strategic investment of more than $300 million to establish a fabless semiconductor company in India.

The move positions L&T alongside other major Indian conglomerates in an ambitious endeavour to build a robust semiconductor industry in India, a nation that stands on the cusp of becoming a significant player in this critical field.

Historically, semiconductor manufacturing has been dominated by a handful of countries, notably the United States, Taiwan, South Korea, Japan, and more recently, China. These nations have invested heavily in semiconductor technology, resulting in a concentration of advanced manufacturing capabilities.

However, the ongoing geopolitical tensions, especially those between the United States and China, have created a compelling imperative for diversification. Countries like India are viewed as viable alternatives for semiconductor manufacturing due to their expansive market potential, lower production costs, and a developing technological ecosystem.

L&T’s initiative to develop L&T Semiconductor Technologies reflects this global shift, aiming to capture part of the burgeoning semiconductor market.

Ambitious targets

The strategy involves creating a fabless model, where the company will focus on designing and selling semiconductors while outsourcing the manufacturing.

This approach allows for flexibility and reduced capital expenditure, which is particularly beneficial in an industry characterised by high initial investments.

L&T plans to allocate this substantial investment over the course of three years, with ambitious targets set for product development and market entry.

By the end of the current year, the company aims to design 15 different semiconductor products, with plans to commence sales by 2027.

The targeted product segments include power chips, radio-frequency semiconductors, and mixed-signal integrated circuits, which are pivotal for applications in the automotive, industrial, and energy sectors. These areas, undergoing significant transformation with the adoption of electric vehicles and renewable energy technologies, present fertile ground for L&T’s innovations.

While L&T’s investment may appear modest compared to industry titans like Nvidia and AMD, which continually push the boundaries of semiconductor technology, it is a critical step for India’s ambitions in this field.

The emphasis on products that cater to rapidly evolving sectors enhances the potential for success and market capture, particularly as global trends push for more integrated and smarter technological solutions.

Government Support

Integral to L&T’s semiconductor venture is the supportive policy environment established by the Indian government, as part of its broader strategy to bolster local manufacturing capabilities and reduce reliance on imports.

The government has earmarked $10 billion to attract semiconductor manufacturers and suppliers, incentivising companies to set up operations in the country.

Initiatives like this have already garnered momentum, with significant projects launched by entities such as the Tata Group and Micron Technology, which have both established facilities in India, further solidifying the nation’s position in the semiconductor value chain.

L&T Semiconductor Technologies has recognized the importance of government support in this endeavor, advocating for design subsidies and incentives that would bolster the semiconductor ecosystem.

The company’s workforce, currently comprising approximately 250 skilled chip designers, is expected to double by the end of 2024. This growth in human capital is essential for cultivating an innovative culture and developing high-quality semiconductor products that can compete on a global scale.

Future outlook

The establishment of a semiconductor industry in India carries significant economic implications. The move towards self-sufficiency in semiconductor manufacturing not only reduces vulnerability to global supply chain disruptions but also opens avenues for job creation and technological advancement.

The growth of this sector could catalyse ancillary industries and stimulate a knowledge-based economy, fostering innovation and competitiveness in a range of fields.

Furthermore, as the United States, Germany, Japan, and Singapore expand their domestic chipmaking capacities amid concerns over supply chain reliability, India’s proactive approach positions it as a potential beneficiary of this global trend.

The ability to manufacture critical components locally can mitigate the risks associated with geopolitical tensions while providing strategic advantages in technology development.

Do Chinese car makers see a bright spot in Saudi Arabia?

Naushad K. Cherrayil
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Do Chinese car makers see a bright spot in Saudi Arabia?
  • Saudi sovereign wealth fund is expected to open offices in Beijing, Shanghai and Shenzhen.
  • Saudi Arabia is the fifth-largest destination market for Chinese car exports and has become a logistical hub for re-exporting imported cars from China.
  • As price sensitivity grows among consumers, who are now gravitating towards smaller, more economical engine options, the Chinese manufacturers appear poised to capitalise on this trend.

The recent hints by China’s Ambassador to Saudi Arabia, Chang Hua, regarding potential factory setups by Chinese car manufacturers in the Kingdom reflect a significant strategic alignment between these two nations.

The partnership transcends mere economic transactions, illustrating a concerted effort by both countries to navigate the complexities of a rapidly changing global landscape.

As Saudi Arabia strives to diversify its economy, particularly in light of its status as the world’s leading oil exporter, and as Chinese carmakers seek new avenues for growth amidst geopolitical tensions, the implications of this collaboration merit careful examination.

Saudi Arabia, currently ranked as the 22nd largest car market globally, presents a promising opportunity for Chinese manufacturers.

Notably, several prominent Chinese automotive companies—Changan, Geely, MG, Chery, Great Wall Motor, Hongqi, GAC, and BYD—have already established branches in the Kingdom, indicating a burgeoning presence.

The rising sales figures, with a reported 16.9 per cent increase in 2023 amounting to 729,466 units, further underscore the viability of the Saudi automotive market.

Equally important is the dramatic rise in market share for Chinese automakers, which increased from less than one per cent in 2017 to approximately 12 per cent of new vehicle sales in the Gulf Cooperation Council (GCC) region last year.

The trajectory suggests a growing acceptance and demand for Chinese vehicles among Saudi consumers.

China’s automotive expansion into Saudi Arabia is also intertwined with the broader context of the Kingdom’s Vision 2030 initiative, which aims to transform the nation’s economic framework away from oil dependency.

Evolving partnership

Saudi Crown Prince Mohammed bin Salman has expressed aspirations for “Made-in-Saudi” vehicles to populate the streets of the Kingdom, revealing a commitment to building a domestic industrial base.

In this regard, Chinese manufacturers find themselves at a pivotal intersection; they can tap into an emerging local market while participating in the Kingdom’s ambition to become an industrial hub within the Middle East.

The geopolitical climate plays a significant role in this evolving partnership.

 As relations between China and the United States have soured, Saudi Arabia is increasingly looking to strengthen ties with Beijing.

Chinese companies seek to explore new markets in response to growing trade restrictions and tariffs imposed by Western nations. The diversification of portfolios and a strategic pivot towards the Middle Eastern market appear not only pragmatic but essential for sustaining growth in an increasingly competitive automotive sector.

Moreover, the Public Investment Fund (PIF) of Saudi Arabia’s impending establishment of offices in Beijing, Shanghai, and Shenzhen signals a commitment to fostering deeper economic ties with Chinese enterprises.

Investments such as the $5.6 billion deal in 2023 with Chinese electric vehicle maker Human Horizons further illustrate PIF’s strategy to develop a domestic electric vehicle industry, which is critical in today’s environmentally conscious market.

The collaboration aims to leverage Chinese technological advancements in electric vehicles, positioning Saudi Arabia as a significant player in the EV sector.

While the burgeoning presence of Chinese automakers in Saudi Arabia is promising, it is also indicative of a fiercely competitive landscape.

Stealing market share

The enhanced quality and finish of Chinese imports have begun to challenge established competitors from Japan and the United States, highlighting a critical evolution in consumer preference and market dynamics.

Automotive experts have noted that Chinese brands are increasingly capturing market share from established South Korean automakers like Kia and Hyundai, showing that consumer perceptions are shifting in favor of Chinese offerings.

Last week, Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, embarked on a visit to Guangzhou, Hong Kong, and Singapore, aimed at enhancing bilateral relations and exploring joint venture opportunities.

The initiative underscores Saudi Arabia’s commitment to diversifying its economy, with particular emphasis on the automotive sector, a pivotal element of the national industrial strategy.

Alkhorayef highlighted the importance of fostering innovation within the car industry, acknowledging the rapid evolution of the market landscape.

Over the past decade, the emergence of Chinese car manufacturers has significantly altered the dynamics of the Gulf Cooperation Council (GCC) auto market.

Stats say it all

Companies such as MG, Geely, BYD, and Changan have introduced an extensive range of models, catering to diverse consumer demands with remarkable speed and competitive pricing. The proliferation of affordable vehicles has rendered traditional players, particularly American and Japanese manufacturers, increasingly less accessible to large segments of the population.

As price sensitivity grows among consumers—who are now gravitating towards smaller, more economical engine options—the Chinese manufacturers appear poised to capitalise on this trend.

The sustained advance of Chinese automakers is evident in the increasing volume of vehicle imports into Saudi Arabia. From 2019 to 2023, the number of cars imported from China surged from 48,120 to 180,590, reflecting a staggering growth of 275.3 per cent.

The influx has transformed Saudi Arabia into a logistical hub for the re-exportation of Chinese cars to neighbouring markets, further solidifying the presence of Chinese brands in the region.

The market has seen the introduction of models that not only mirror popular brands such as KIA but also challenge European offerings. For instance, the Hongqi H5 sedan, priced at $47,000 with a seven-year warranty, exemplifies the competitive strategy employed by Chinese manufacturers to attract consumers who value both prestige and affordability.

The evolution of the automotive market in Saudi Arabia serves as a testament to shifting consumer preferences, where value for money increasingly dictates purchasing decisions.

The success of Chinese brands within this landscape is a clear indication of their strategic acumen in understanding and responding to the nuances of consumer demand in the GCC region.

As the competition intensifies, it will be critical for traditional automakers to adapt to these changing dynamics, lest they cede further ground to their more agile and cost-effective rivals.

Edge computing gains traction as digital transformation revs up

Naushad K. Cherrayil
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Edge computing gains traction as digital transformation revs up
  • Projected to grow by 14% to reach $228b in 2024 and reach $378b by 2028.
  • Edge computing emerges as a pivotal technology infrastructure that bridges gap between traditional centralised data centres and burgeoning world of distributed computing.

As organisations increasingly transition toward digital transformation, edge computing emerges as a pivotal technology infrastructure that bridges the gap between traditional centralised data centres and the burgeoning world of distributed computing.

According to the International Data Corporation (IDC) Worldwide Edge Spending Guide, global expenditure on edge computing is projected to reach an astounding $228 billion in 2024, representing a remarkable 14 per cent increase from 2023 and expected to reach $378 billion by 2028, driven by a solid double-digit compound annual growth rate (CAGR).

The significance of these projections transcends mere financial metrics; they reflect an evolutionary shift in how businesses leverage technology to enhance operational efficiency and drive innovation.

At its core, edge computing pertains to the technology-related operations conducted outside of centralised data centres, serving as a crucial intermediary between connected endpoints and the broader IT environment.

Decentralised approach

The decentralised approach is essential in addressing the increasing demand for real-time data processing and analytics, particularly as the focus of artificial intelligence (AI) pivots from training to inference.

Dave McCarthy, research vice president at IDC, said that edge computing is vital for mitigating latency and bolstering privacy, thereby optimising operational efficiencies while enabling the development of new business models previously unattainable through centralised infrastructure.

“By distributing applications and data to edge locations, businesses can facilitate faster decision-making processes and alleviate network congestion, rendering operations more agile and responsive to real-time dynamics.”

The breadth of the edge ecosystem encompasses an array of technologies and services, including computing infrastructure—such as servers, storage, and networking equipment—alongside diverse software solutions ranging from system infrastructure to security measures.

Professional services, implementation strategies, and provisioned services delivering cloud-based technologies further enhance the capabilities of edge computing in various sectors.

Use cases soar

Among the various sectors, manufacturing represents the largest share of edge spending, where edge computing facilitates real-time monitoring of equipment and processes.

The capability is instrumental in minimising downtime and optimising operational efficiency. For instance, AI-driven predictive maintenance empowers companies to identify potential issues before they escalate into costly breakdowns, revolutionising maintenance strategies and driving down operational costs.

Similarly, in the utilities sector, edge computing plays a crucial role in the management of critical infrastructure, encompassing electricity, water, and gas utilities. The integration of edge solutions is essential for processing vast quantities of data quickly and securely, thereby supporting the transition toward smarter grids and a more decentralised energy landscape.

The financial services industry has emerged as the fastest-growing domain in terms of edge computing expenditures. With the proliferation of AI-powered services, banks are reimagining their data management strategies, enhancing fraud detection and enriching customer interactions through real-time data processing.

Use cases in banking, such as AI-optimised operations and augmented fraud analysis, exemplify how edge computing fundamentally transforms traditional business processes.

Alexandra Rotaru, manager, Data & Analytics, IDC Europe, said that enterprises are now accelerating their investments in edge and AI to drive real-time analytics, automation, and enhanced customer experiences, particularly in manufacturing, utilities, healthcare, and retail.

Service providers

“Key technologies like AI-powered devices, edge servers with GPUs, and 5G connectivity are gaining traction, enabling organisations to process data closer to the source and achieve higher performance.”

In this journey, he said that service providers will play a critical role by offering tailored solutions, from infrastructure deployment to AI integration and edge management, helping enterprises seamlessly adopt edge and AI and unlock its full potential for advanced innovation.

Regarding technology spending, IDC expects the most significant investment will stay within hardware at the beginning of the forecast, driven by AI processors and accelerators in edge infrastructure systems that are projected to generate increased demand in the coming years. However, provisioned services are estimated to surpass the hardware share by 2028.

Within provisioned services, infrastructure as a service will represent the fastest growth category as a great tool that facilitates rapid development, deployment, and iteration of AI models and edge computing applications.

Although small in terms of overall spending, on-premises software will remain a critical component of edge infrastructure, driven by accelerated demand for analytics and AI software.

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