Kumho HT Completes Establishment of Indian Subsidiary... Aiming to Supply Products in First Half of Next Year

Kumho HT has completed the establishment of its Indian subsidiary to prepare for the increasing demand for electric vehicle parts in India.

On the 28th, Kumho HT announced that it has completed the establishment of a local subsidiary in the Chennai area of India and is preparing to secure factory land and buildings as well as invest in SMT factory equipment. The Chennai area hosts production facilities of domestic automakers and major partners, and with the Indian government launching a mega incentive program to promote electric vehicle production, investments related to electric vehicles have been continuously increasing recently.

The company’s Indian SMT factory is planned to have five LED module production lines installed, and sufficient factory space has been secured considering future equipment expansion. Equipment construction and setup are expected to be completed in the first half of 2024, and automotive LED module products will be supplied to customers. This factory is expected to achieve annual sales of $30 million.

Kumho HT aims to strengthen the production and supply of products applied to both internal combustion engine vehicles and electric vehicles through local production in India. Additionally, through close local sales activities, the company anticipates an increase in supply volume to meet continuous new model parts demand from customers in the future.

The company has been maintaining steady growth by fully launching the supply of electric vehicle battery parts in the second quarter. Due to the boom in the upstream industry, it recorded consolidated sales of 250 billion KRW and operating profit of 6.7 billion KRW in the third quarter. The company explained that with the automotive industry expected to remain strong in 2024, sales growth is anticipated to continue next year.

Meanwhile, Kumho HT’s largest shareholder is Ecovolt, an automotive electronics company holding a 29.61% stake. Ecovolt has shown improved performance with steadily increasing sales of vehicle headlamps.