MARCH, 20269TVS MOTOR CEO PREDICTS 8-9% CAGR FOR TWO-WHEELER INDUSTRY GROWTHHCL-FOXCONN VENTURE SETS UP OSAT UNIT IN NOIDAThe two-wheeler market is about to grow strongly, having a CAGR of 8-9 percent in the long term. KN Radhakrishnan, CEO of TVS Motor Company, has indicated that the government investment in infrastructure, reduced GST rate and the general growth of the economy will cause this growth.Radhakrishnan noted that the sales would experience high growth in the first half of the coming fiscal year as the impacts of the GST rate cut will still be felt in the industry.On the positive side of the two-wheeler sector, he indicated that 8 per cent to 9 per cent as a CAGR, one can look at it on a long-term basis. These gains should be realized in the Q4 performance and further enhanced by the GST cut, which will take effect on September 22, 2025.One of the reasons behind this optimism is that road connectivity in rural, urban and semi-urban regions has been enhanced and the issues of public transportation continue to pose a problem. Furthermore, the self-employed category that comprises a good percentage of the Indian population is also best fitted with two-wheelers because they are affordable and convenient in providing mobility to them.Radhakrishnan predicted that the market of two-wheelers will grow in FY27 and the reduction in the GST rate will not only favor the two-wheelers but also other industries. He projects a possible growth rate of above 15 per cent in the fourth quarter, which is one of the best performances observed in the industry. India Chip Private Limited on Saturday laid the foundation stone for its new OSAT facility in Greater Noida, marking a major step in India's semiconductor push.Prime Minister Narendra Modi joined the event virtually as the joint venture between HCL Group and Foxconn unveiled plans to invest Rs 3,700 crore in the project.The upcoming unit, located at the Yamuna Expressway Industrial Development Authority in Jewar, will manufacture display driver chips and is expected to be operational by 2028. With a capacity of 20,000 wafers per month, the OSAT facility is projected to create over 3,500 direct and indirect jobs while boosting local supply chains and strengthening India's semiconductor ecosystem.India Chip Pvt Ltd is structured as a 60:40 partnership between HCL and Foxconn. Speaking at the event, PM Modi said semiconductor plants spark innovation and startup growth. Referring to the Global AI Impact Summit held in Delhi, he said, "Today, India is rapidly progressing towards its goal of development. I have also said from the Red Fort that India has no time to pause or slow down. Since the beginning of 2026, India has accelerated its progress... and now this week is also proving to be historic for India."HCL Chairperson Roshni Nadar Malhotra said the company plans to build and train talent with Foxconn's support, adding it will need 600 to 800 high-tech engineers. Backed by the India Semiconductor Mission, the project reflects renewed momentum in a sector that once struggled due to skill gaps and limited resources. TOP STORIESMARCH, 20269
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