New Delhi: SEG Automotive, a leading supplier of automotive components such as starter motors and mild hybrid systems, anticipates Asia playing a pivotal role in shaping the future of mobility and driving its business forward.
Globally, SEG is strategically aligning the production base for its products in countries that cater to the majority of demand. China serves as the production hub for high-voltage (HV) systems for passenger vehicles. Similarly, with the majority of demand for light electric mobility (LEM) coming from India, the company plans to make India its global development base for LEM solutions.
“Asia will shape the future of mobility. For the first time in over 50 years, we will see a complete reversal in the automotive landscape where a trend is led by this region,” Ferdinando Sorrentino, Global CEO of SEG Automotive, told ETAuto.
SEG Automotive currently has a presence in 14 countries with 6000 employees serving almost every major automotive OEM. It was earlier part of the Bosch group, and boasts a rich heritage. Its legacy includes groundbreaking innovations such as the invention of the starter motor, and technologies like Start/Stop systems and mild hybridisation.
On average, the Stuttgart-headquartered SEG allocates approximately 10-12% of its annual sales turnover to research and development (R&D) and new technologies.
Last week, the company unveiled new system solutions for both HV and LEM segments, catering to two-, three-, and four-wheelers. For passenger cars and commercial vehicles, it introduced a platform capable of supporting applications up to 800 volts and 300 kilowatts.
Electrification currently accounts for 10% of SEG Automotive’s business in India. Globally, this figure stands at around 7-8%, with the company targeting to increase it to 15-20% over the next five years.
Leveraging India market
Sorrentino highlighted that unlike other regions, India stands out as the only market where the electrification trend is growing across all segments. However, the adoption of electrification is advancing more rapidly in the LEM sector. “Now we want to take this technology to the world,” he said.
India is SEG’s third-largest market globally, currently accounting for 16-18% of its overall revenue. While other markets are also projected to grow rapidly, the company expects India to maintain its strong growth trajectory, driven by “frugal investment and faster development time”.
The global supplier anticipates India’s contribution to surpass 20% of its global revenue in the coming years. Its business in Europe is relatively small, as it is “just getting started” in that market.
Currently, the company has more production capacity than it is delivering to customers. At the Hosur plant, it can produce up to 1 million units of LEM and HV components. “We are confident that volumes will increase in the coming years,” he said.
Wants to be ‘Last Man Standing’
The Bengaluru-based firm will continue to offer solutions compatible with the current range of internal combustion engines (ICE), with India serving as its base for this strategy. The company anticipates that different technology solutions will coexist in India for a longer period, making it a key market for these developments.
“We were the company that produced and sold the first starters into the world, and we want to be the one that will produce and sell the last starter in the world. So we will continue to invest in the ICE segment. We believe that it has another 20 years of life, even though its share will keep shrinking over the years,” Sorrentino said.
However, he acknowledged the challenge of maintaining a resilient supply chain and adapting the portfolio during this process of consolidation.
In addition to India, the company is also adjusting its portfolio in Latin America, which could serve as a foundation for its ICE business in the future.
