MARCH 20258ABB: INDIA POISED TO BECOME OUR THIRD-LARGEST MARKET FOR ELECTRIFICATIONLENOVO TO MANUFACTURE AI-POWERED PCS IN INDIA, TAPPING INTO PLI SCHEMELenovo aims to produce AI-powered PCs in India this year, highlighting its efforts to expand and diversify its supply chain in the world's fastest-growing major economy."It's in the early stages, but we need to first comply with the local government policy," said Ivan Cheung, Vice President & Chief Operating Officer, Asia Pacific, TOP STORIESLenovo (AP) to Indian Express at an event in Yokohama, Japan. "We need to focus on manufacturing and serving the Indian demand first before expanding the plant and manufacturing capability."The world's largest PC maker already produces some of its commercial PCs in India at a facility in Puducherry, while contract manufacturer Dixon assembles Motorola smartphones. However, Lenovo is now looking to manufacture advanced AI-powered PCs in the country, aiming to expand its local production footprint and leverage the government's production-linked incentive scheme."Besides just manufacturing for India, we are also looking to leverage India as a manufacturing hub. For smartphones, we are already doing this; we manufacture smartphones in India and export them to North America. For PCs, we also have a similar plan, leveraging India as part of our diversification strategy," Cheung added.Cheung declined to reveal whether the company plans to manufacture entry-level AI PCs or premium ones but mentioned that they are looking at high volumes. "I think it will be quite comprehensive, and the expectation for us to meet the new manufacturing requirements is quite high. The volume will be substantial, and I would say across both commercial and consumer products as well". A senior executive from Swiss-based ABB stated that India is set to become the company's third-largest market for its electrification division. The executive also noted that India and China are expected to grow at similar rates.Giampiero Frisio, president, electrification business area, and member of the group executive committee of ABB, said, "India is going to become our third-largest market (for the electrification business)," he added, "it could become either this year or next year."The senior executive expects India to also develop as a hub for ABB's re-exports to "some Middle East and some parts of Asia and Africa." At present, these re-exports from India are about 10-15 per cent. Frisio added that catering to India's own demand remains the focus. "After the pandemic, we are seeing that the Indian market is picking up in a very, very good way," he added.Frisio also remains unfazed by the new presidency in the US and the likely de-focus from energy transition. He said, "There is a lot of investment that was coming from the Inflation Reduction Act, done by the previous administration, that is still there. It was not cancelled. There will be, for sure, more gas, and what we can do is to help the oil and gas industry become leaner and cleaner. Eventually, from the electrification standpoint, there will also be a balancing from the gas economy companies". TOP STORIES
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