CHINA PLUS ONE STRATEGY Diversify your Business Operations with Expansion in India

The term “China Plus One” coined in 2013 refers to a global business strategy where companies avoid investing only in China and diversify their businesses to an alternative destination. The China-US trade war, COVID-19 global pandemic, supply chain disruption, high freight rates, and rising labour costs have provided a fresh impetus for multinational companies to reduce their overconcentration of business interest in China and diversify it to other developing countries like India, Mexico, Vietnam, Malaysia, Thailand, and Taiwan. A strategy for building collaborative supply chains that would be resilient in the long run was unveiled by a group of 18 economies, including India, the US, and the European Union in late July 2022. Steps to address supply chain vulnerabilities and dependencies were also included in the roadmap. This can be viewed as a component of the larger China-plus-one strategy. India is possibly the next-best prospect to benefit from these shifting circumstances due to its strategic advantage across a variety of industries, excellent production factors, favorable business ecosystem, and supportive government policy initiatives. Campaigns such as Make in India and Production Linked Incentive (PLIs) from India have accelerated the transition, resulting in many global conglomerates from the United States, Japan, the U.A.E., Germany and France being already registered and expanding their investment in India. The Reserve Bank of India is making a key development in international trade by reducing the dependency on US dollars for financial settlement and empowering the usage of Indian Rupees.

TECHNOLOGIES

Instead of an internal combustion engine, electric vehicles have an electric motor. Using a large traction battery pack, the electric vehicle power the electric motor. The large traction battery pack is charged through the electric vehicle supply equipment (EVSE). As the vehicle runs on electricity they generate no exhaust?and are considered as a key technology to decarbonize road transport. Hybrid (HEV), Plug-In Hybrid (PHEV), Battery Electric (BEV), Extended-Range Electric (ER-EV), and Neighbourhood Electric (NEV) are different technologies of the electric vehicle that determine acceleration, capacity and range of the vehicles.

DEVELOPMENTS

New ideas for electric, autonomous, connected and shared mobility are accelerating innovation in the automotive industry. Over the past ten years, the industry has received investments totaling more than $400 billion, with over $100 billion of those investments coming since the start of 2020. Governments across both developing and developed countries are improving their strategies for the development of rapid charging infrastructure and expansion of commercial charging to support HDVs. The expansion of the electric vehicle market is highly driven by high performance, low emission, increased demand for fuel efficiency, strict government pollution restrictions, falling prices of EV batteries, and rising gasoline prices.

MARKET PROJECTION

The market for electric vehicles globally was valued at $178.5 billion in 2021 and is projected to increase at a Compound Annual Growth Rate of 22.5% from 2022 to 2030, reaching $1108.8 billion. The EV charging market was worth around USD 14.5 BN in 2021 & is expected to increase with a CAGR of 28.21% between 2022 and 2030. From a value of USD 77,581.7 million in 2021, the hybrid electric vehicle segment is anticipated to reach USD 301.67 billion by 2030. The year 2026 has been identified as a turning point for an increase in EV adoption that will propel future trends in automotive electrification. Over one in every four newly sold passenger automobiles by 2030 will be electric cars.

WHY INDIA AS THE GLOBAL MANUFACTURING HUB?

• By 2030, India plans to develop exporting capacity of goods worth $1 trillion
• Manufacturing Policy intends to increase manufacturing's contribution for GDP to 25% by 2025.
• The Indian manufacturing sector might boost the world economy by $500 billion a year by 2030.
• India's abundant supply of raw materials makes it a desirable destination for manufacturing companies.
• Electricity expansion, long-term employment possibilities, and a skilled workforce are significant factors in India.
• The manufacturing sector in India is becoming more automated and process-driven.

BECOME SUPPLIER OF GLOBAL COMPANIES

A company's customer funnel and the right customer base are key parameters to define its strength. We at Crescendo Worldwide work with enterprises, right from identifying potential clients to vendor registration. A thorough study is undertaken by the experts of Crescendo with the supplier company before selecting the potential clients as the selection of clients is purely based on the study made by the team which follows.

• Analysis of the needs of suppliers
• Understanding supplier capabilities via audits on manufacturing capabilities, production processes, finances, quality, etc.
• Creating pre-requisites ready for the client approach
• Identification of big potential companies & buyers
• Client communication and supplier introduction
• Filling forms like supplier self-assessment & audit formalities
• NDA signing, RFQ evaluation & feasibility study
• Initiating direct communication between supplier & buyer on commercial & supply terms
• The signing of long supply contracts & purchase orders

Published by

Crescendo Worldwide Pvt. Ltd.

Copyright ? Crescendo Worldwide 2023, All rights reserved by Crescendo Worldwide Pvt. Ltd.