The Indian arm of Taiwanese manufacturing giant Delta Electronics is anticipating its EV business to match or surpass its current revenue share by 2030. Though EV currently contributes only a small portion of the company’s revenue, it is projected to grow at 30 percent year-on-year (YoY), driven by new product launches like the 240kW DC Fast EV Charger, says Niranjan Nayak, Managing Director of Delta Electronics India.
In the near term, the company anticipates higher revenue contributions from data centres and industrial automation, but EV is set to be a major growth driver. “Our initial focus is on two-wheelers, three-wheelers, and four-wheelers, covering both onboard and offboard solutions. Gradually, we plan to expand into e-buses and e-bikes,” Nayak says. Currently, Delta Electronics India contributes around 5 percent to the company’s overall global revenue, a figure Nayak projects will grow to 10 percent in the next five years.
Localisation
On the localisation front, Delta Electronics has localised 60-65 percent. “More than 60-65 percent of what we sell in India is manufactured locally,” Nayak notes. The company has a significant production facility in Krishnagiri, which was established two to three years ago, along with additional factories in Rudrapur (for telecom and UPS) and Delhi (for display solutions).
“We have been able to localise several components, except for semiconductors and a few critical parts. India currently lacks the infrastructure for these, but we are working with partners to bridge this gap,” Nayak says. Delta Electronics collaborates with local vendors and also brings in overseas suppliers, encouraging them to invest in India.
The company has invested $500 million in its operations, with a significant portion allocated to infrastructure, including land, test equipment, and factory expansion. “Building a fully equipped factory requires heavy investments, including SMT lines, which are quite expensive,” Nayak explains.
Beyond infrastructure, Delta Electronics is also heavily investing in research and development (R&D). “The second-largest investment is in building labs, followed by hiring skilled manpower for R&D and other functions,” Nayak adds.