Member of Management Board, Business Unit Thermal and Fluid Systems, MAHLE
India Will Lead Electric Mobility Solutions For 2/3Ws: MAHLE
At the Auto Expo 2023- Components Show held in January this year, MAHLE India showcased innovative solutions that are shaping the future of sustainable mobility, including relevant powertrains.
We spoke to Martin Wellhöffer, Member of the Management Committee, Corporate Executive Vice President – Sales & Application Engineering, MAHLE International and Milind Godbole, President, MAHLE Holding (India) on a variety of topics.
Wellhöffer expects great opportunities with EVs, particularly with MAHLE's expertise in the area of thermal management for passenger vehicles. On the 2/3-wheeler sector,...
Transcript (22 segments)
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Interviewer0:00
Hello and welcome to the Mobility Outlook Studio at Auto Expo Components Show 2023. I have the absolute pleasure to have with me today Mr. Martin Wellhoeffer, Member of the Management Committee, Corporate Executive Vice President Sales and Application Engineering at MAHLE International, and also Mr. Milin Gurbani, President of MAHLE Holding India. Gentlemen, welcome.
I'll start with you. Your first impressions of the Delhi show, and considering the transition that we see in the industry...
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Martin Wellhoeffer0:34
Well, first of all, it's great to be back in India. It took some time after COVID, and it's great to have this fair. It's really so busy, so crowded, which is great. I think everybody was eager to come back to look at the newest technology. And looking at our current transformation, this is really the spot to be. It's so great to see that also in India, electrification is picking up, technology is picking up, and that's exactly the spirit we're experiencing here today.
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Interviewer1:03
Right. So again, just getting a little deeper into this transition that we see from ICEs to EVs and of course to future technology, how are you looking at the opportunity in the Indian market for MAHLE?
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Martin Wellhoeffer1:16
Well, of course, ICE will remain a major technology and we will further invest in it. Power 6.2 is now coming in, further power 7 is coming. However, with EVs coming, this is really a great opportunity for us on two sides. One is for the passenger cars, where we have a strong foothold in thermal. We see great opportunities because cell management will be a key technology for EVs in the future — battery cooling, heating of the interior — it will all go together because you need the best cell management for the longest battery range. But secondly, also on the two-wheeler and three-wheeler side, we have established as I think the first foreign company in 2020 already a plant in India where we are into traction motors and motor controllers for two and three-wheelers, electric mobility. And everybody knows India is a place to be for two-wheelers, so we are really, really appreciating this development and going forward with it.
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Interviewer2:16
Considering what India is doing for MAHLE, what are some of the learnings that you can possibly take to other markets globally?
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Martin Wellhoeffer2:25
Well, first of all, we're very happy that with all our big four business units we are well established in India. We've been in India since 1958, so a really long-term presence. I have a long-term relation with India. And what we learn is to be quick, to be of course price competitive, and what we also foster is a great talent pool we have here. This is really something we can expand more and even not only for the India market but a large extent of our IT capabilities we are having here is for other regions. This is something we really can take out of India. And software as well, which is coming more and more important now in the vehicle and also automotive industry, this is something where India can really contribute.
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Interviewer3:12
Do you look at India as a potential hub for a certain area of expertise that you bring in to the industry? Would you like to take this one?
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Milin Gurbani3:22
So I think one of the things that Martin already mentioned is the two-three-wheeler side. We are today the center of excellence to that extent for the two-three-wheeler electrification and all the electromobility development there. Also, I would say from the thermal management side, solution development and the speed at which some of the local OEMs are moving forward — India has a step in the door today to be faster than probably anywhere else in the world to really get into the solution development side of e-mobility on the thermal management. So these are the two key areas that we really focus on. And to add to what Martin already said, for success here it's also the localization as well as local R&D that we are bringing here so that we can match the speed as well as taking a lot of the technology that we have in the other parts of the world quickly.
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Interviewer4:18
When you look at the future of mobility, we talk about the different mega trends that are driving the industry. Where do you think India could contribute the most for MAHLE in terms of growth?
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Milin Gurbani4:32
So it's across the board. For example, if you just see this year, we've had a record growth. Moving from 270 to 280 million euros, we are now nearly 400 million euros — that's what we clocked last year. So we see huge growth even in the traditional businesses. And as Martin said, we've been here since 1958 when we set up our footprint here, and we have a footprint in every business unit. We see a lot of growth especially on the thermal side and also on the electromobility side. These are the two key areas where we see a good amount of growth.
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Martin Wellhoeffer5:15
And what I'd like to add — we've said it before, but for two-wheelers, three-wheelers, this is really, really unique in India. It's the biggest market. This is really the core for us: two-wheelers, three-wheelers, electric mobility. The origin will be India, and we will extend from India to the world. That's really unique for two and three-wheelers.
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Interviewer5:36
Okay. While you're looking at expanding, what are the kind of capabilities that the Indian operations will have to develop in terms of capacities, people, R&D, engineering? How do you look at that?
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Milin Gurbani5:51
So clearly, as I said, it's not one answer to everything, but it starts with having a footprint. We were the first to set up a footprint in terms of manufacturing for two-three-wheelers, for example. We saw this early and set this footprint up first. Then the second part is the R&D and the development which we need to do, which obviously we are expanding at a rapid rate now — not only for India but also for the globe. As Martin said, we have more than 100 people now working on the India piece on the R&D side, but we have four times that, about 400 people, working for the global R&D. So it also helps us in terms of technology transfer and transitions between these two units. And then in terms of investment, of course, we back up the units very well with the investments and what's required for them to manage the growth that really comes forward.
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Martin Wellhoeffer6:44
And maybe one thing to add — what could be an accelerator is ease of doing business. It has improved — if you look at the rankings, it's really improved — but there's still room left, I would say, to get Western companies more engaged, to spend more capex. But still, it's quite complicated to be honest.
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Interviewer7:03
Quite complicated. Any fresh investments that you're looking to make in India?
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Martin Wellhoeffer7:07
Well, what we're still focusing on is increasing our headcount on the R&D side, increasing our headcount on the shared service center side — this would be the next big step. And then in the midterm, with thermal management becoming more and more important for electromobility, there will be some investment necessary in terms of new technology areas.
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Interviewer7:33
Alright, so my final question — we're talking sustainability, we're talking about carbon neutrality. From a MAHLE perspective, if you could give us a sense of the kind of initiatives you're doing.
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Milin Gurbani7:42
Yeah, it's a great question. I would take the India one and probably Martin can add from a global standpoint. This is really important for us, driven both in our wholly-owned units as well as our joint ventures here. We have run a lot of projects in terms of renewable energy and completed some of them, especially on the solar side — not only in the facility but also procuring solar electricity so that we can have carbon neutrality. In addition to that, energy management projects are something we keep a very close tab on with all the units we work with.
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Martin Wellhoeffer8:23
And globally, of course, we are following the Paris Agreement. Until 2040, CO2 neutrality is our goal. Until 2030, we are going to minus 65 — not 50, we've said a little bit of a stretch on it. So that is our goal. And India in particular, as Milin said already, is a front runner in solar energy. We build our plants with solar energy to get really CO2 efficiency and neutrality accomplished.
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Interviewer8:49
Wonderful. I appreciate you talking to us. Thank you so much.
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Martin Wellhoeffer8:52
Thank you. Thanks so much.