Dana invested close to $18 million in July 201 for a one percent stake in Switch Mobility, an electric vehicle company backed by Ashok Leyland.
03 Oct 2022 | 6876 Views | By Shahkar Abidi
Dana, a supplier of energy-management and propulsion systems for the auto segment, and which is banking on the e-mobility segment remains undeterred by the anticipated global recession on the back of robust demand from the domestic market, says Gajanan Gandhe, Country Head & VP, Dana India.
He told Autocar Professional that vehicle electrification is ...
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Dana, a supplier of energy-management and propulsion systems for the auto segment, and which is banking on the e-mobility segment remains undeterred by the anticipated global recession on the back of robust demand from the domestic market, says Gajanan Gandhe, Country Head & VP, Dana India.
He told Autocar Professional that vehicle electrification is only likely to grow more aggressively as almost every OEM will possibly come to have around 25-30 percent of their businesses coming from electric vehicles over the next 5-10 years.
Dana invested close to $18 million in July 2021 for a one percent stake in Switch Mobility, an electric vehicle company backed by Ashok Leyland. The company's objective has been to supply its powertrains to Switch Mobility for the development of electric buses for both India and export markets. The Leyland arm which recently announced its plans to supply 200 electric double decker buses to Mumbai's civic authorities for public transport, has already received interests for similar double decker e-buses from at least half a dozen other civic authorities from across the country.
In its global electrification efforts to date, Dana has made investments worth over $400 million, notably in India, where it was one of the first businesses to set up a high and low voltage motor plant in Pune. The company now leads the market for motors used in electric buses as a result of the invention, Gandhe added. Crucially, Dana, which also uses India as one of its exporting hubs for supplying components to several of its global business units, has also apparently been encouraging its local suppliers to ship their goods to Dana's facilities in other nations. Approximately $250 million, if not more, in components are provided separately by Dana's suppliers to its locations worldwide, according to an internal figure, Gandhe revealed continuing that the company has reached close to 95 percent indigenisation rate for its auto components in India.
Gandhe's faith in the growth potential in the domestic market stems from its local consumption capabilities in addition to the massive funding from government and private sectors. He said that while the domestic consumption in India has been high because of the size of the country's population, the government's expenditures should also remain strong- irrespective of whether it is done from existing funds or by issuing brand new currencies. "At the end of the day, if these two things are going to increase substantially, then you know, you're not going to be as much affected by the global recession". he said citing the example of China which largely remained unaffected by the global recession of 2008 on back of its inherent domestic demand as well as spending by its government. Gandhe further remarked that while indices of the companies may get impacted because of their sensitivity towards global events, from the perspective of GDP, India may continue to hover around 7-8 percent or may even be 10 percent on an annual basis.
US-headquartered Dana reported $8.9 billion in sales for 2021 and has 40,000 employees working in 31 locations.