Latest news with #SachinLawande
Time of India
02-06-2025
- Automotive
- Time of India
Geopolitics, market opportunities drive Visteon to up investments in India
Highlights$3.87 billion automotive electronics major chooses its Chennai plant for its first-ever production lines for camera, and back light unit manufacturing. India to get 'disproportionately higher' investments than other markets for the next few expected to outgrow China in terms of revenue contribution. Growing geopolitical issues make Visteon focus more on India as a strategic base too. Co. looks to invest in a new manufacturing plant, and also set up a JV New JV in India with a Chinese player to also be a global production hub. In a new era of swifter technology trends and hypercompetitiveness on one hand, and geopolitical issues on the other, global organisations have their task cut out for drawing product and investment strategies for sustainable growth. In such a scenario, India seems to be emerging as a safe bet, with a promising market, and as a hub for global trade. For the same reasons, global automotive electronics major Visteon is upping its bet on India. The $3.87 billion automotive electronics major is executing a vertical integration strategy , with a 'pilot' production facility each for automotive camera, and backlight display unit in Chennai as the first cost the company a little over $ 8 million. Relatively small investment in the 'pilot' project, but big gains expected with the planned scale up of the vertical integration strategy. The vertical integration that will start from India can have a massive impact globally, on our operations and our ability to, number one, be competitive number two, to be in much better control of the whole supply Lawande 'The vertical integration that will start from India can have a massive impact globally, on our operations and our ability to, number one, be competitive number two, to be in much better control of the whole supply chain,' Sachin Lawande, President and CEO, Visteon tells ETAuto . Disproportionate growth expected Visteon, a leading player in the global automotive display business, expects the number for automotive displays in India to 'explode'. The growing trend of automobiles becoming like 'mobile phones on wheels', with bigger, and more screens inside them is a key driver. The Indian automotive infotainment market stood at $595 million in 2024, and is expected to grow to over $1.8 billion by 2033, according to IMARC, an American management consulting firm. Also watch: Tariff wars could reshape some dynamics like the pandemic did: Visteon CEO Currently, 600,000 out of Visteon's total annual supply of 15 million displays worldwide are fitted in India-made cars. India contributes 6-7% of the $3.87 billion global major. Relatively small share for India, but Lawande says India will grow 'disproportionately higher than other parts of the world' for Visteon, and increase its revenue share to 10-15% in the next few years. Around 15%, or $600 million, is what China contributes to Visteon's annual revenue currently. The internal projection is that Visteon's India business will be bigger than its China revenue in the next 3-4 years. What fuels the bullishness are growing demand for larger displays, cockpit domain controllers, cameras. New growth areas ADAS (Advanced Driver Assistance System) solutions is the space that Visteon is preparing to enter next. 'It's a new market. As you know, in India, it's just starting to appear. Regulations are also starting to come in, so we expect that to be a driver for us,' says Lawande. Visteon expects the cockpit domain and the ADAS domain in an automobile to come together. 'So we see an integration opportunity and camera capability is integral to be able to offer a competitive solution,' says Lawande, while adding that the challenge for the teams is to innovate and drive costs down simultaneously. With localisation and innovative approaches, Lawande claims that a new Visteon infotainment unit will be 'at least' 20% cheaper than its peers. What is also expected to be a major driver is the India two-wheeler industry, where Visteon currently has a small presence. With a growing trend of display technology migrating from four-wheelers to two-wheelers, the company, which currently supplies a million two-wheeler instrument clusters annually, sees strong growth potential in the segment. 'There are about 25 million wheelers produced in the markets that we serve, excluding China, and India is a big portion of that. And this 25 million is expected to be 30 million by the end of this decade,' says Lawande. Two wheelers today, which represents about 2-3% of our revenue, has the potential to be about 10%.Sachin Lawande Last year, Visteon bagged over $300 million of business in two wheelers globally. It's expecting a better rate this year. 'Two wheelers today, which represents about 2-3% of our revenue, has the potential to be about 10%,' says Lawande. And, this jump is expected in the next 5-7 years. New plant, JV With the growing focus on India, as a growth market and also as a strategic base, Visteon plans to make 'disproportionately higher' investments than in other geographies. The company generally invests $100 - $150 million annually in operations globally. Key projects planned in India for this year are a joint venture with a Chinese player for display technology, and a second manufacturing plant in India, possibly in the Chakan industrial area of Maharashtra. The combined investment for both projects could be in the range of $50 million. Also read: Visteon set to form JVs in India to tap India, and global opportunities better The growth prospects in India makes Lawande make a bet on Visteon's India business, currently 6-7% of its global revenue, to reach up to 15% in the next 3-4 years. 15%, or around $600 million, is what the American major earns annually from China currently. Visteon is among the players witnessing a slowdown in China, reflecting the market share trend of foreign brands who are also customers.A strategy to offset that is to win business from Chinese OEMs. The China factor also influences Visteon's financial guidance for 2025 to be a little lower, $3.65 - $3.85 billion, than last year. In contrast to its overall financial guidance, the outlook is bullish for India.
Yahoo
30-04-2025
- Automotive
- Yahoo
ECARX partners with Qualcomm to expand ECARX product portfolio
ECARX, a provider of automotive technology, has announced an expansion of its collaboration with Qualcomm Technologies to develop a broader range of intelligent vehicle systems. The partnership will focus on integrating ECARX's hardware and software expertise with Qualcomm's Snapdragon Cockpit Platforms to support the development of software-defined vehicles (SDVs). The collaboration builds on ECARX's experience in deploying its technology in over 8.1 million vehicles worldwide and Qualcomm's established presence in the automotive sector through its Snapdragon system-on-chip (SoC) platforms. Together, the companies aim to develop a scalable suite of products for automakers seeking to implement advanced digital cockpit solutions. As part of this partnership, ECARX is increasing its engagement with original equipment manufacturers (OEMs) to bring these technologies to mass production, while Qualcomm continues to provide high-performance, secure SoCs tailored for automotive use. In another development, Visteon, a US based automotive electronics supplier, is also collaborating with Qualcomm Technologies to develop an AI-powered cockpit system for vehicles. The system will combine Visteon's cognitoAI framework with Qualcomm's Snapdragon Cockpit Elite Platform, using a hybrid multimodal AI architecture to enhance in-vehicle user experiences. Visteon president and CEO Sachin Lawande said: 'This technology collaboration marks a pivotal moment in automotive technology, where AI-driven insights will transform the way drivers and passengers interact with their vehicles. 'We are excited to work with Qualcomm Technologies and lead the charge towards creating a truly intelligent cockpit experience.' Separately, an artificial intelligence company, has entered into an agreement with Qualcomm Technologies to jointly develop advanced driver assistance systems (ADAS) and autonomous driving technologies. These solutions will be built on Qualcomm's Snapdragon Ride Platform, particularly the SA8650 model, aiming to deliver high-performance and cost-effective intelligent driving systems. "ECARX partners with Qualcomm to expand ECARX product portfolio" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
