TECO, a major electric motor manufacturer, offered future estimates that the performance of the electric vehicle power system will increase by 30% annually today. However, TECO believes the performance of the electromechanical system will fall flat next year, with smart energy expected to grow significantly and smart life solutions expected to rise steadily. TECO also revealed plans that the new plant in India is expected to be implemented in the first quarter of next year, potentially adding electric vehicle capacity in India.
During TECO's virtual corporate briefing session, the company had expressed expectations towards its Q4 performance, estimating that the revenue of electromechanical systems will increase by 7% to 11% annually, the revenue of smart energy will increase by 33% to 37% annually, and the revenue of smart life may decrease by 12% annually.
When asked how Taipower's power grid resiliency plan has contributed to its performance, Fan Xin, general manager of TECO, said this is an excellent opportunity for TECO. TECO has developed large-scale power solutions and can participate in projects like Taipower's decentralized and strong power grids. Fan said there are hopes that the company's product lineup next year will correspond to Taipower's framework to improve overall performance.
Looking forward to next year, Fan said that the traditional motor frequency conversion solutions of the electromechanical system business group have slowed down in the Chinese and Taiwanese markets, but they continue to grow healthily in the North American market. In the energy-saving solutions, the global response to climate warming will help TECO's performance steady out, as it is estimated that the performance of the electromechanical system will be flat next year.
In smart energy, Fan Xin predicts that the performance of the smart life business will grow significantly next year; as for the home appliance business of smart life, it may be under greater pressure, mainly because the demand in mainland China and Taiwan began to slow down in the fourth quarter, but the performance of the smart life business is expected to be stable next year. Upward, mainly because the demand for commercial air conditioners is still solid.
In the layout of the new plant in India, Fan Xin says they are expected to start production in the first quarter of next year. The initial annual production capacity of the new plant is estimated to be 50,000 motors. TECO is also discussing cooperation plans with Indian electric vehicle manufacturers, and may add electric vehicle production capacity in India.
In terms of electric vehicle power system, Fan Xin expects that TECO's performance in related fields will increase by 30% compared to last year. The trial mass production and shipment of electric trucks will begin in the fourth quarter. It is estimated that the performance of electric trucks will grow slightly next year.