EV sector depends on China, but geopolitics spurs bus maker to start focus on own tech
Electronic bus maker PMI Electro Flexibility Solutions Pvt Ltd (PEMSPL), that includes a technology partnership with China’s Beiqi Foton Motors, is attempting to develop its own technology and integrate that into its products within five-six years, in respect to a senior company established.
The firm’s promoters are also investing around Rs 15 crore on a battery assembling plant at Dharuhera in Haryana so that you can localise more components for its electric vehicles (EVs) in India and reduce dependency on Chinese imports.
“Whenever we went for technology collection, we had two options-either choose the European technology or the Chinese technology. Chinese, as everybody knows, may be the cheaper technology but a stable one aswell. We chose to proceed with Foton back 2017 basis the fact we wished to get items quicker, suitable for India,” PEMSPL Director Aman Garg told PTI.
He asserted that “many people are reliant on Chinese technology (for EV) because this is the only cheaper solution available till now”.
While admitting that the business enjoys the “technological edge riding with Foton”, Garg said, “The scaling up must happen in India. That's what we are sure of. We don’t consider ourselves reliant on Foton because you want to localise the making of the ingredients.”
When asked if PEMSPL is working to develop its technology to lessen dependency in the Chinese partner for future upgrades, he said, “It must be because there is not any sustainable business (if there is dependency)... In as far as technology can be involved, we will work on that front aswell but yes that will take the time... I search at a horizon of five-six years and we'd have the ability to integrate our very own technology.”
Garg as well said PEMSPL complies with the FAME-II scheme rules regarding local manufacturing of pieces, for up to 50 % localisation, although critical pieces like motor and batteries continue being imported.
On electric battery, he said the promoters of PEMSPL have setup a subsidiary which will invest into developing of lithium batteries for EVs.
“We will be creating a battery manufacturing unit at Dharuhera. We happen to be starting small with an purchase of Rs 10-15 crore. We had already acquired terrain in 2017 so we don’t count that as an investment today. The investment isn't coming through PEMSPL but by its promoters,” Garg added.
Dispelling notions that PEMSPL is normally a Chinese company, he explained, “As an enterprise, it really is promoter funded, without immediate or indirect investments from any Chinese company or actually any overseas company.”
Although PEMSPL and Foton India had formed a jv (JV), he said PEMSPL as a majority shareholder ensured a totally Indian manufacturing facility to be established to produce new energy professional vehicles, with technology support from Foton.
As well, he said the buses that PEMSPL offers supplied to state transport units “have been produced by PMI Electro” certainly not by the JV and “there is absolutely no foreign investment mixed up in manufacture of electric buses so far. PMI Electro acquired a technology tie-up with Foton under which they gave us usage of technology. Thus, no international investments are made up to now in investment of electric buses.”
Source: www.deccanchronicle.com
