Consumer Electronics Manufacturers Expand Horizons, Leverage Government Incentives
- Chinmay
- February 6, 2025
- India, News
- Amber Enterprises, automotive, Consumer Electronics, Dixon Technologies, Indian Industry Growth, IoT, Localization, Lumax Industries, manufacturing, PLI Scheme, Uno Minda
- 0 Comments
India’s consumer electronics and automotive component industries are witnessing a strategic shift as leading manufacturers expand into new domains, driven by government incentives and increasing localization efforts.
Contract manufacturers such as Dixon Technologies, Amber Enterprises, and Epack Durables are diversifying into automotive component manufacturing, while auto parts giants like Uno Minda, Lumax Industries, and Hella India Automotive are expanding their footprint in electronics manufacturing.
This cross-industry convergence is fueled by the Indian government’s Production Linked Incentive (PLI) schemes, aimed at strengthening local supply chains and reducing import dependency.
Electronics Meets Automotive: A Converging Landscape
With overlapping components like PCBs, sensors, LED drivers, BLDC motors, and semiconductors, electronics and automotive manufacturing are merging into a multi-sector growth opportunity.
- Dixon Technologies is in talks to venture into automotive displays, planning to set up a $2.7-3 billion display fab.
- Amber Enterprises is supplying PCB applications and assembly boards for both two-wheelers and four-wheelers.
- Epack Durables is tapping into automotive clients for PCBA components, optimizing its spare capacity for non-seasonal business.
Why This Shift?
- Utilizing Existing Capacities – With seasonal demand cycles in consumer electronics, expanding into automotive ensures year-round utilization.
- PLI Scheme Boost – Government-backed incentives are making local manufacturing cost-competitive.
- Common Components – PCBs, LED modules, and battery components are used in both industries, enabling seamless cross-deployment of technology.
Government Support and Investment in Localization
The Indian government is actively promoting domestic manufacturing, announcing new PLI schemes for electronics and automotive components.
- Uno Minda has secured PLI approval and invested ₹20 crore to scale production and reduce import dependency.
- Lumax Industries & Hella India are investing ₹60 crore & ₹18 crore, respectively, to manufacture LED drivers, PCBs, and LED modules.
- Upcoming PLI Scheme – The government is set to announce incentives specifically for electronic components, further boosting domestic production.
Expert Insight:
Hemal Thakkar, Director at Crisil Intelligence, highlights that both electronics and automobiles are high-growth sectors, making diversification a logical step for manufacturers looking to scale.
The Future of Cross-Industry Expansion:
What’s Next?
1. More Electronics Companies Entering Auto Manufacturing – With PLIs making localization profitable, more consumer electronics firms will move into EV and automotive components.
2. Increased LED & Semiconductor Production – Auto component suppliers like Uno Minda, Lumax, and Hella India will expand into advanced electronics manufacturing.
3. Smart & Connected Technologies – The rise of IoT-enabled appliances and connected vehicles will blur the lines between electronics and automotive even further.
A New Era for Indian Manufacturing:
This cross-sector integration is boosting India’s self-reliance, creating a more competitive, scalable, and resilient supply chain for electronics, auto parts, and future technologies.
