Contract Manufacturers Expand into Components and Auto Parts

Top contract manufacturers in consumer electronics, now entering component production, along with automotive parts makers, are seeking to expand beyond their primary focus. Due to government incentives and the requirement for optimal capacity use.

Executives from consumer electronics companies such as Dixon Technologies, Amber, and Epack Durables stated they plan to enter the automotive sector with offerings like automotive displays, printed circuit boards (PCB), and printed circuit board assemblies (PCBA). It was also referenced during the investor calls in recent days.

Likewise, auto parts producers such as Lumax Industries, Uno Minda, and Hella India Automotive have recently been chosen in the government's third phase of the white goods production linked incentive (PLI) scheme to manufacture components for LED lighting.

Dixon Technologies' managing director Atul Lall informed analysts that the company aims to venture into automotive displays and is currently in negotiations for collaboration. This will be launched from the display fabrication plant that the company aims to establish with an investment of $2.7-3 billion.

India’s largest contract AC manufacturer Amber Enterprises chief executive officer Jasbir Singh said the company is supplying PCB applications and assembly boards for four and two wheeler industries. “So, there is a cross deployment of customers in botḥ, PCBA and PCB. And I believe we will be able to do that,” he told analysts.