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Komax India: ready for the electric two-wheeler boom

Trends

Over the next few years, India plans to electrify its huge two-wheeler fleet at breakneck speed. Komax India has been a big contributor to the Indian vehicle industry for 32 years and is ready for this great challenge.

Key insights

  • About 129,000 electric two-wheelers were sold in 2019 and 152,000 in 2020. According to estimations, the yearly retail sales volume will reach more than a million units by the end of 2025.

  • Thanks to government measures, the overall costs will be reduced by 35%-40%.

  • For the growing demand of automatic crimp-to-crimp machines, our Gamma 450 is currently the most suitable model. It guarantees the lowest cost per wire.

Imagine: In India, motorized two-wheelers account for over 80% of traffic. Around one-sixth of global sales are concentrated there. In 2019, 21 million were sold, and even in 2020, the figure was still 17 million. Most of them are of ≤ 125 cc engine capacity.

Ambitious plans up to 2030

Because the government wants to reduce imports of fossil fuels above all, it is consequently steering toward electric mobility. Specifically, the National Institution for Transforming India (NITI Aayog) – a government think tank – proposed that only electric vehicles be sold in India by 2030. To that end, it called for all-electric conversion for two-wheeled vehicles with engine capacity of less than 150 cc by 2025.

India's electric two-wheeler market has been growing steadily since 2014. According to Statista, about 129,000 units were sold in 2019 and 152,000 in 2020. Estimations for this year are 187,000. It is predicted that the yearly retail sales volume will reach more than a million units by the end of 2025, with a compound annual growth rate (CAGR) of 36%. Meanwhile, the retail sales value is expected to rise to over USD 1.0 billion by 2025, corresponding to a CAGR of 63.9% during the 2020–2025 period.

Convincing reasons for switching to electromobility

Why is demand increasing so strongly? For one thing, incomes are rising and young populations increasing; there is also rapid urbanization, and rural economies are expanding. There has also been a massive decline in battery prices from USD 1,160/kWh to USD 156/kWh. Battery costs account for 40–50% of the total cost of a two-wheeler. The operating costs for e-scooters are only one-tenth of those of two-wheelers with internal combustion engines. Add to this the fact that in India the cost of generating electricity from renewable energy sources is lower than the cost of generating electricity from fossil fuels. Battery capacity is likely to be a non-issue for electric two-wheelers, as they are mainly used for inter-city travel/short distances.

The most important growth factor from the government side is the FAME II grants program (Faster Adoption and Manufacturing of Electric Vehicles in India) for all electric vehicles. Besides the possibility of 100% foreign direct investments, additionally, the automobile industry will be the biggest beneficiary with USD 7.81 billion outlay over next 5 years out of the 10 key chosen industries under PLI scheme (Production linked Incentives). In a nutshell, this will reduce overall costs by 35%-40%.

Data Source: SIAM

12 to 30 million units by 2030

With a domestic share of 50% (bylaw on most saleable two-wheelers) the domestic manufacturing sector will develop swiftly. A relative abundance of renewable energy resources and the lower cost of solar electricity generation will significantly impact the developing charging infrastructure.

Especially after the recent revision of the FAME program and with gasoline prices steadily rising, electric vehicle manufacturers are optimistic about growth this year and beyond. The up-front cost of electric two-wheelers and their gasoline counterparts is similar at present, which along with the added advantage of lower cost of ownership make the electric versions more attractive to customers. So important manufacturers believe that as much as 40% of the Indian scooter market could go electric over the next five years, and that this market could be anything from about 12 million units to about 30 million units by 2030.

How efficiently Komax can serve this emerging market

The goals of zero power wastage, safety, additional sensors for AI, and creating wiring harnesses that are compact & lightweight make this new generation of vehicles much more quality-oriented and complex as compared to conventional ICE two-wheelers.

Given such uncompromising quality and special prerequisites, Komax technologies such as ACD (automatic conductor detector), which doesn’t allow even a single tiny nick mark on conductors, will play a prominent role. Hence, Red dot award winner wire strippers such as “Mira series machines” will be most suitable for the multi-core/ multi-layer and sensitive sensors cable stripping.

Undoubtedly, this unprecedented demand for quality will create a desire for greater automation. For example, to process multi-core sensor cables with an insertion length of 7 mm. Here, Komax offers customized solutions on application basis.

Komax Mira 230

Battery wire harness of mid speed range electric two-wheelers

Komax Gamma 450 guarantees the lowest cost per wire

Each two-wheeler typically requires up to 130 wires in its harness with a cross-section range from 0.5 to 6 mm2. However, this depends on the speed range. For mid-range and higher models, high-voltage cables must have larger cross-sections, e.g. 25–35 mm2 (without shielding) to allow the high current flow (not more than 150 A). In addition, almost 50% of the cables are protected with seals.

If the two-wheeler market develops as expected it offers great potential for Komax within the next coming years. The Gamma 450 is currently the most suitable model to fulfill this demand since it guarantees the lowest cost per wire. The most important factors are Swiss technology, the highest throughput, and complete inline quality monitoring. The Gamma 450 easily processes cables with a cross-section of up to 4 mm2. Four process modules can be configured to produce both-side sealed and crimped wires.

The newly developed, unique Komax HMI makes this model even more user-friendly. "Komax Green Button" ensures error-free and efficient production and minimizes the operator's influence on processes.

In addition to crimping, ultrasonic welding technology is also gaining influence, for welding wires with terminals and making wires node. It is also the most suitable solution for battery packs.

Komax Gamma 450

Monitoring machines: anywhere, anytime 

Digitalization is definitely making its way into the manufacturing industry, just as it is changing our everyday lives, our communication behavior, and the way we do certain things. Terms such as Industry 4.0, IoT, and Smart Factory are ubiquitous and inevitably affect wire harness manufacturing as well. The design of the Gamma 450 is based on these megatrends. It meets all cloud connectivity requirements for real-time monitoring.

In this respect, our digital products such as “Komax Connect” connect the customer to production around the clock and provide certified data security. In particular, batch/lot traceability can be achieved effortlessly at any time in the future. Ultimately, this greater transparency of paperless production reduces downtime and significantly improves productivity and quality.

Suppliers to the largest Indian OEMs are in close contact with us to increase their competitiveness. We also provide consulting services in the high-voltage and low-voltage sectors with all our experience from other markets. Komax India is ready for the huge challenges of the next few years.

Komax customers benefit from over 30 years of presence in India

What does all this mean for Komax? We have been present on the subcontinent for over 30 years. In 2008, Komax Automation India Pvt. Ltd. was established as a 100% subsidiary of Komax AG, with head office in Gurgaon (State of Haryana) and branch offices in Ahmedabad, Pune, Bangalore & Chennai. The market knows and appreciates our wealth of technological products and digital services for the entire wire harness manufacturing value chain.

Komax is market leader in India. We grew along with the motor vehicle market, and this growth was rapid. To give you an example: In 1998, the country produced 530,000 motor vehicles; in 2018, the figure was over 5 million, almost ten times more. The overall electric vehicle market is estimated to involve USD 7 billion in opportunities by 2025. We contribute to every vehicle in India. This means that there isn’t any vehicle on Indian roads whose harness has not been processed on Komax machines. There is no doubt that we will play an important role in developing this new market.


Contact

Sidharth SharmaHead of Digital Services & Applications – Asia

Joined Komax in 2016 as Head of Sales & Service – India. After achieving targeted milestones in India, he has overseen the digital services and application business in Asia since July 2021.


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