Mitsui, Taiwan's Teco to produce EV motors in India
NEW DELHI, NNA - Japanese trading firm Mitsui & Co. has joined hands with leading Taiwanese motor manufacturer Teco Electric & Machinery Co. to produce electric vehicle (EV) motors in the South Asian country which has the potential to become a huge market for EVs.
The partners are looking to jointly invest $14 million to set up a plant in Bengaluru in the southern Indian state of Karnataka by the end of 2020.
The joint venture (JV) is undertaken by Temico International Pte. Ltd., which was established in April last year “to pursue the development, manufacturing, and sales of EV motors and EV powertrains globally,” said Mitsui, which owns a 40 per cent stake in the firm while Teco takes up the larger 60 percent.
The JV has already set up its local subsidiary Temico India Pvt. Ltd in India which has already rolled out various schemes in in its transition to go electric to tackle its worsening air pollution in crowded cities.
“The plant is expected to commence full production by the end of next year, generating 110,000 high efficiency motors per year,” Mitsui said in a press statement issued on Thursday.
A spokesman at the company’s headquarters in Tokyo told NNA in a phone interview that the construction of the plant will start in January next year and it will occupy a space of over 18,000 square meters.
The Mitsui spokesman said two types of motors for the EV and industrial applications will be produced.
“When fully operational, the plant is expected to annually produce 60,000 units of EV-specific motors and another 50,000 units for industrial use,” said the spokesman.
The plant is Mitsui's second major EV venture in India following its investment in Treasure Vase Venture Pvt. Ltd in July which saw the running of SmartE, which is India's first and largest three-wheeler electric mobility service.
Mitsui's previous investments in EV outside of India include EV Connect Inc., a major provider of electric vehicle charging and software in the United States, as well as The Mobility House GmbH, a leading provider of EV charging solutions in Germany.
“Sustainability and mobility are key growth areas for Mitsui and we are investing more in EV businesses as the world moves towards a low-carbon society,” said Shinichiro Omachi, managing director, Mitsui & Co. India Pvt. Ltd., in the press statement.