Indian auto parts cos bet on China amid West's EV U-turn

Ford's brutal EV lesson could further nudge Indian auto component suppliers towards East

- Ayaan Kartik [e-mail]

Western automakers are slamming on the brakes on EVs.

(MINT)

India’s leading auto component manufacturers will look to hitch a ride with Chinese carmakers amid Western auto giants’ faltering electric-vehicle (EV) bets.

The Ford Motor Co. announcement that it expects to write down $19.5 billion in EV investments—the largest impairment taken by a US automaker—has brought into the spotlight the commentary of at least two domestic auto parts makers—Sona BLW Precision Forgings Ltd (Sona Comstar) and Samvardhana Motherson International Ltd—on their ability to win the Chinese business.

In its 13 November investor presentation, Motherson’s leadership noted that the company is already working with seven out of the top 10 Chinese carmakers. "[We are] supplying to seven out of the top 10 local NEV (New Energy Vehicle) Chinese players [and] supporting Chinese OEMs (original equipment manufacturers) in their production outside of China," the presentation noted.