1.4 Billion Population, New Joint Entry into India's Home Appliance Motor Market with Mahindra
Seeking Long-Term Partnership as Collaborative Partners
[Asia Economy Reporter Hyungsoo Park] SPG, a precision geared motor manufacturer, announced on the 19th that it has officially signed a Memorandum of Understanding (MOU) with Mahindra Intertrade, part of the Indian Mahindra Group, to jointly enter the Indian high-efficiency motor market for home appliances.
Currently, India imports AC motors for home appliances. The Indian government has recently reiterated its strong commitment to the localization of core components for home appliances.
An SPG official explained, "SPG, which possesses world-class high-efficiency BLDC technology, and Mahindra Intertrade, a leading company in the Indian home appliance parts sector, have sought a partnership to produce top-tier BLDC motors within India and have signed an MOU."
The business the two companies will jointly pursue primarily considers high-efficiency BLDC motors to be applied to air conditioners for the Indian domestic market. High-efficiency BLDC motors have comparative advantages over conventional AC motors in terms of efficiency, lifespan, and noise.
SPG CEO Younggil Yeo said, "India, with a population of 1.4 billion, has a relatively low penetration rate of home appliances," and added, "The air conditioner penetration rate is low, making it an attractive market." He further stated, "The signing of the MOU with Mahindra, which has large-scale production plants and facilities, is a great opportunity for our entry into the Indian market."
CEO Yeo also emphasized, "Starting with collaboration on high-efficiency BLDC motors for air conditioners, we will explore business plans that allow both parties to achieve a win-win by leveraging SPG's reducer and motor technology and Mahindra's market dominance in India across various new fields in the future."
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