The FAME 2 policy of the Modi government is germinating a robust ecosystem for electric vehicles as the centre had sanctioned ₹8,596 crore for incentives, of which ₹1,000 crore has been earmarked for setting up charging stations for electric vehicles in India. As a result, many companies like Delta Electronics is leveraging on the massive trust by the current government by offering customised charging solutions for zero emission vehicles. The power and energy management firm, which has so far installed over 700+ charging stations in India, has now firmed up plans to invest US$ 500 million to establish a dedicated facility for vehicle chargers at Krishnagiri in Tamil Nadu. Once established, it would be the company’s third overall facility in the country.
Talking exclusively with BW Businessworld, Niranjan S. Nayak, Business Head, Delta Electronics India said, “For the last couple of years, we have also started developing EV charging technology solutions which are tailormade for India. When we started, it was initially what is called ‘Bharat Chargers’, which we have supplied to quite a few government establishments. We have set up around 700 chargers in different configurations in most of the metro cities,” adding,” We have supplied to Hyundai (for Kona) and MG and are speaking to all OEMs whether they are two-wheelers, three-wheelers, four-wheelers (manufactures). As a technology we are ready, and offer our solutions based on the requirement of that country.”
However, Delta Electronics India has been categorical that it will be selling its chargers or solutions to system integrators or OEMs and will not be investing in development of charging stations.
“Our investment will be purely in terms of technology. To put it the other way, we will set up a charging stations against a purchase order or job order from the customer. Electric vehicles are expected to take a big shape in the future and we have the technology that can take care of a lot of range issues, increase the battery capacity and can decrease the battery cost. I think the government policy in the right direction in terms of FAME and that is the reason we have taken this as our future growth engines for Delta and we are quite prepared for this
When asked about its global presence in the EV charging space, Nayak maintained, “We are a global leader in power management solutions which we offer to our partners or customers either through a direct supply or through an OEM. With that, it was a logical enhancement for us for us to work in the EV segment globally. We have also been working with the world’s leading EV manufacturers by supplying various components in Europe and US. We also thought it was a good opportunity for us to set up the technology for EV charging stations in US, Europe and Japan.
Delta Electronics anticipates its electric vehicle charging business in India to more than 50 percent per annum in the next three years with more car-makers bringing their EVs into the country.
“Being one of the early movers of EV charging solutions providers, we have tied up with quite a few OEMs. The advantage with us is that we have a energy storage solution and can give the end-to-end solutions. This can help us to grow faster than other players in the market. If it was 500 (charging stations) in the first year, it could go up to 2,000' in the subsequent year and the growth will be quite faster. After 5 years, the pace of growth may not be that high.”
Meantime, Delta Electronics India has unveiled its E-Mobility Tech Experience Center aimed at strengthening electric vehicle charging infrastructure of the country. The E-Mobility Tech Experience Center is conceptualised to provide an industry platform that will support all types of ratings and configurations and be an enabler when it comes to understanding the ecosystem of EV charging solutions.
While inaugurating this state-of-the-art Experience Center, Niranjan S. Nayak, Business Head, Delta Electronics India said “Being a leader in the global market, we are working towards bringing our deep industry expertise and engineering capabilities to India to fulfil the highly demanding needs of the EV ecosystem players.”
It may be recalled that Delta Group in India is operating since 2003. Delta Electronics India Private Limited, is a group entity and a leading Power and Energy management company is a 100% subsidiary under the ultimate control of Delta Electronics (Thailand) PCL. Delta operates in three business categories: Power Electronics, Automation and Infrastructure. Currently having a topline of US$ 300 million, the company is aiming to clock US$ 1 billion in the next few years.