Your April 4th Week Briefing on Automotive, Aerospace and Battery Industry

We're thrilled to present a Special Edition of the Month with market insights about major deals done in the first quarter of this year. Meanwhile, here's what caught Procurabl’s attention this week. Stay till the end to find out the exclusive market insight of the industry this year.?

Automotive

?Tesla's Indian Entry Uncertain as Focus Shifts to Existing Facilities

Tesla's potential entry into the Indian market faces uncertainty as the company shifts its focus away from new factory investments, opting instead to utilize existing facilities for building new and more affordable vehicles. Reports suggest that Tesla may delay plans for factories in Mexico and India, choosing to increase production by 50% by 2023 using current infrastructure. Meanwhile, rival Rivian accelerates production of its R2 SUVs in the U.S., deviating from initial plans for a new plant. Tesla's strategic shift reflects a pragmatic approach to growth and cost-effectiveness amidst evolving market dynamics.

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Ultraviolette Launches F77 Mach 2 Electric Motorcycle with Advanced Features

Ultraviolette has launched the F77 Mach 2, with customers booking opened on April 24. It is an updated version of its electric motorcycle, featuring upgrades primarily in software and electronics. Priced at Rs 2.99 lakh (ex-showroom, introductory) for the first 1,000 bookings, the F77 Mach 2 introduces enhancements such as 10-level regen modes, a 3-level traction control system, Dynamic Stability Control, and a Hill-Hold feature for safety and stability. It also debuts the Delta Watch feature, employing IMU and gyro systems to send alerts to the owner's smartphone in case of any movement.?

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Aerospace?

Drone Destination Unveils Ambitious Plans to Revolutionize India's Drone Ecosystem

Drone Destination unveiled its ambitious #EverythingDrones initiative at a grand press conference, aiming to revolutionize India's drone ecosystem. Their plans include a Pan-India expansion with 250 Drone Hubs in the next 3 months and over 1000 hubs in 2 years, offering integrated drone services, sales, repairs, and training. They introduced Drone Hub on Wheels, a mobile solution providing 'Drone Dost' (services), 'Drone Doctor' (repairs), and 'Drone Guru' (training) through a single touchpoint. Additionally, they announced initiatives like Drone Shiksha & Drone Kaushal to introduce drones in schools for STEM learning and skill students for drone careers. Moreover, they're launching Drone Soccer, in association with Drone Soccer Association India, to send an Indian team for the Drone Soccer World Cup 2025.?

ISRO Advances Airbreathing Propulsion Technology with Extended Scramjet Test

The Indian Space Research Organisation (ISRO) is gearing up for a significant advancement in airbreathing propulsion technology with plans to conduct an extended scramjet engine test in the next two months. Led by Dr. V. Narayanan, Director of the Liquid Propulsion Systems Centre (LPSC), ISRO aims to achieve a targeted flight duration exceeding 300 seconds, surpassing previous milestones in scramjet experimentation. Unlike conventional rockets, ISRO's scramjet engine utilizes oxygen from the atmosphere, enhancing efficiency for hypersonic flight.?

HAL's ALFA-S Drones Set to Revolutionize Indian Air Force's Warfare Capabilities

Hindustan Aeronautics Limited (HAL) has collaborated with Bengaluru-based startup NewSpace Research and Technologies to develop the Air-Launched Flexible Asset (Swarm), or ALFA-S, a next-generation weapon system for the Indian Air Force. These 1 to 2 meters long drones feature folding wings for efficient storage within canisters on aircraft. Once released by the pilot, the drones deploy wings and utilize battery power to reach speeds exceeding 100 kilometers per hour. The project incorporates a unique glider pod concept, housing four ALFA-S drones each, allowing fighter jets like the Su-30MKI to carry five such pods. Scaled models have undergone testing for successful launch without airframe stress, and electric propulsion systems have been evaluated. ALFA-S drones can operate as hunters or defenders, deployed offensively or defensively, showcasing adaptability.?

Energy Storage

Reliance, JSW, and Others Bid for Government Incentives to Establish Battery Manufacturing Units

Seven companies, including Reliance Industries and JSW Neo Energy, have submitted bids for government incentives to establish battery manufacturing units, in response to a global tender issued by the Heavy Industries Ministry on January 24. With an outlay of INR 3,620 crore, the scheme aims to award manufacturing facilities with a cumulative capacity of 10 GWh, although bids received totaled 70 GWh, indicating a sevenfold oversubscription. Other bidders include ACME Cleantech Solutions Private Limited, Amara Raja Advanced Cell Technologies Private Limited, Anvi Power Industries Private Limited, Lucas TVS Limited, and Waaree Energies Limited. This initiative follows the re-bidding of Production Linked Incentives (PLI) for 10 GWh Advanced Chemistry Cell (ACC) manufacturing, part of the National Programme on ACC battery storage, with a goal of achieving a domestic manufacturing capacity of 50 GWh.?

?Mobis Embarks on European Expansion with New EV Battery Plant for Volkswagen

Mobis, a global leader in electric vehicle components, has initiated the construction of a new Electric Vehicle Battery System Plant in Navarre, Spain, marking its strategic entry into Western Europe's automotive market. The plant, slated for mass production by 2026, will be dedicated to supplying Volkswagen, a key client. With an investment of 170 billion KRW (approximately 120 million euros) by 2030, the facility aims to produce up to 360,000 battery systems annually.?

As Promised,?

Special Edition Q1 2024 Market Insights: Automotive Industry Deals

In Q1 2024, the automotive industry saw 24 deals worth USD 357 million, with MaaS (mobility-as-a-service) and EVs (electric vehicles) leading in deal volumes and values. Of these, 6 were M&A activities totaling USD 172 million, while 18 were PE and VC activities amounting to USD 185 million.

Notable deals include:

- Mitsui & Co and VDL Group acquired a minority stake in Eka Mobility (Pinnacle Mobility’s Solutions subsidiary) for USD 100 million.

- Mitsubishi Corp acquired a? 32% strategic stake in TVS Mobility for USD 36 million.

- Magna International acquired a minority stake in Yulu Bikes for USD 14 million

- Bajaj Auto acquiring a minority of 1% stake in Yulu Bikes for USD 6 million

- Mahanagar Gas Limited acquired a minority stake in 3ev Industries for USD 12 million.

Despite a 49% decline in values compared to Q4 2023, the industry remains poised for significant deal activity, driven by global growth projections and resilience in emerging markets like India.

?? By - Aman Vishwakarma