Domestic EV motor maker eyes Turkey and Indonesia after Indian-market success

TECO, a major electric motor manufacturer, plans to replicate its manufacturing experience in the Indian market and enter the electric vehicle market in Turkey and Indonesia. TECO currently has orders for smart energy exceeding NT$10 billion, citing a lucrative opportunity in scaling up its operations in the EV industry.

In response to the market's concerns regarding when TECO becomes profitable in the field, TECO's general manager Lian Chao-chi said in an online conference on Nov. 12, that the Indian plant had received an order for EV power trains in EV passenger cars. The company estimates mass production to begin as soon as next year. Based on this experience, TECO is eying similar opportunities in Turkey and Indonesia.

In terms of the company's plans in the smart energy sector, Lian said that TECO is currently managing its entry into the Google Data Center (IDC) supply chain, and it is estimated that it will receive another NT$2 billion in orders. TECO has also received orders from major factories for smart factories turnkey solutions. The company's smart energy order scale exceeds NTD$10 billion.

Looking forward to next year's operations, TECO's Chairman Chiu Chun-zhi said that TECO's smart energy business group is set to see performance growth, notably its smart home appliances business will grow steadily next year in commercial air conditioners and inverter air conditioners.

Chiu added that their main markets include China, the United States, and Europe in the electromechanical business. Next year, China's economic predictions may be revised, and orders are expected to remain flat or grow slightly; the US market is expected to grow by 30% to 40% annually by the end of this year. The results are expected to present next year; the European market is not weak in the off-season this year, and orders are also growing.

Recently, the US House of Representatives passed an infrastructure bill of approximately US$1.2 trillion (approximately NT$33.6 trillion) on the 5th. Lian said that this posed good news for TECO Motor products; in addition, the energy-saving and carbon-reduction trend also jump-started the demand for electrification of oil and gas pipeline pressurized stations.

From the perspective of the three major product lines, TECO's electromechanical system performance accounted for 49.9% in the first three quarters of this year, smart life accounted for about 26.3%, and smart energy accounted for about 13.1%. Among them, electromechanical systems accounted for about 49.7% in the third quarter. Smart life accounts for about 27%, and smart energy accounts for about 14.4%.