Automotive electronics is a rapidly-growing segment which is expected to play a key role in meeting the megatrends in the automotive sector. With the Indian auto industry currently witnessing a revolution in automotive electronics, Infineon, a global front-runner in the field, has aggressive plans to tap the huge growth potential in the sector. We learn more through an exclusive interaction with Mr. Hans Joachim Schatz, Head – Automotive Sales & Marketing, and Mr. Vishal Malhotra, Country Head – Automotive Sales, Infineon Technologies India Pvt. Ltd.
Excerpts:
To begin with, please give us a brief background on Infineon and your presence in India. When and how did you enter the Indian market and what solutions do you offer your customers at present?
Infineon has an established track record in semi-conductors since last 50 years. We have long distributed and sold components in India while we were part of the Siemens Group. In the mid-1990s we set up in Bangalore our second Asian R&D centre for chip design and product development. A little later we began to build up a local sales team. Today, Infineon India represents all of Infineon business divisions – Automotive, Industrial Power, Power Management and Multi-market, as well as Chip Card and Security. We have now expanded our local sales offices in Delhi, Pune and Chennai while maintaining Bangalore as our headquarters in India. With about 200 people the R&D center in Bangalore is focusing on Automotive & Chip Card software development and semiconductor validation.
Infineon offers innovative semi-conductor solutions for automotive electronics systems, renewable energy sector like solar and wind power, power management for a wide range of power ratings covering HVDC transmissions, traction for locomotives, UPS, telecom infrastructure, power supplies in white goods and consumer electronics, as well as hardware security solutions for electronics identification and payment.
We have also established a wide network jointly with both local and global players who have set up their operations in India. Especially in the automotive field, we have created a strong presence in both two- and four-wheeler markets by offering smart and efficient semi-conductor solutions directly to the OEMs and Tier 1 suppliers.
Automotive electronics is a field which has matured a lot in developed markets like Western Europe. How has the growth in this sector been in countries like India over the last few years? What role has Infineon played in this development?
Infineon has been in the forefront of the automotive electronics domain in the developed markets like Europe, North America, Japan and Korea. We introduced a lot of innovative solutions, apart from developing semi-conductor solutions to address challenges like CO2 reduction and energy efficiency for the automotive market in the West.
With respect to adapting to prevalent automotive technologies, India has a much greater potential. Looking at the uniqueness of the Indian automotive space with respect to the two- and four-wheeler division and also the cost sensitiveness of the market, Infineon has developed optimized semi-conductor solutions. Apart from this, we had played a major role in educating the market players on the benefits and advantages of semi-conductors vs. the existing mechanical and hydraulic systems. Be it powertrain, body, safety or EDT, Infineon is the only semi-conductor player with a range of products and wide market reach to leverage the potential that the Indian automotive market currently offers.
Infineon’s focus on system solutions rather than single components makes us a strong partner to collaborate on alternative energy vehicles, lowering emission in engines to meet legislative curbs, and meeting the affordability criterion.
The penetration of new technology and solutions in automotive electronics is generally considered to happen in cars and two-wheelers. How does the commercial vehicle (CV) space (trucks & buses) fair in this regard? What are the products you offer under your division ‘Vehicle Solutions for Truck, Agriculture & Transportation’?
There is a lot of scope in this space as commercial vehicles are an integral part of our industry. In India, safety and emissions in commercial vehicles are a larger concern for the regulatory authorities. This might result in setting new mandates in this segment. For example, ABS is becoming mandatory for commercial vehicles, which may be followed by regulations in TPMS (Tire Pressure Monitoring System). All these will eventually result in increasing the electronic content in commercial vehicles too.
Emission and CO2 reduction also pose a major challenge for the Indian commercial vehicle manufacturers, and regulations with respect to emission like BS4 and BS5 would be made mandatory in India soon. This would provide an impetus for growth in the Indian automotive segment, especially in powertrain and transmission.
Another area which might see additional content of semi-conductors will be in Body Control Modules (BCM), an integrated system for controlling various body peripherals like lighting, wipers, HVAC, etc. Infineon offers a wide range of products like microcontrollers, MOSFETS, CAN/ LIN transceivers, etc.
With modernisation of the commercial vehicle industry, newer technologies for cabin comfort, entertainment, communication, telemetry, etc., will be introduced sooner than later, opening up more avenues for electronic content.
We understand that vehicle safety is an important focus area for Infineon. Could you share details of your offerings in this field? Keeping the Indian market in mind, do you think safety is being given the degree of importance it deserves by various stakeholders – component/system suppliers, vehicle makers and end customers?
In the West, we see vehicle safety is been given the top priority. All cars come with safety features like airbags, anti-lock braking system (ABS), electronic power steering (EPS), electronic stability program (ESP), etc. This is not the case in India. These are available only in high-end cars. So, to answer your question, safety is not given as much importance as it deserves.
Having said that, safety applications in India are currently very policy-driven, possibly due to cost considerations. The several experts in the safety segment in India, are mostly focusing on international markets today, particularly engaging themselves in the service area, i.e., the ground work for a safety applications industry is laid in India, and the country should be able to build up such an industry relatively quickly if and when respective policies evolve.
Electronics plays a key role in improving road safety. Nowadays, both customer demand and government legislations continue improving traffic safety. In addition, electric power steering is a good example of how safety application perfectly combines with enhanced fuel efficiency and comfort.
In terms of our applications, we would like to focus on ABS (Anti-lock Braking System), TPMS (Tire Pressure Monitoring System) and EPS (Electronic Power Steering).
Who are your major customers in the Indian market? Do you work directly with any of the commercial vehicle OEMs or do you function as a Tier-II (or lower) supplier to other component and system manufacturers?
Traditionally semi-conductor businesses had an interface with electronics modules/system manufacturers, i.e., with Tier 1’s/2’s. However, in order to develop an industry segment further, a semi-conductor solution provider working directly with OEMs can offer additional value through system-oriented design and product development. We also work with preferred design houses on specific applications.
Automotive electronics being a highly competitive field the world over, what do you consider as your USPs that set Infineon apart from the rest of the pack?
Infineon is an industry leader, a complete automotive system provider with a product portfolio in hybrid and electro mobility. We have the most comprehensive quality program for the auto industry that fully complies with ISO2626 – functional safety standard for road vehicles.
One of the few broadband suppliers, our product portfolio extends from intelligent sensors and micro-controllers through automotive power standard products and application-specific standard products (ASSPs) to highly integrated customized application-specific ICs (ASICs). This comprehensive product portfolio, combined with more than four decades of automotive system and application expertise, has helped us add value to the automotive eco-system at large.
From a geographical standpoint, where are you present across the country? Also, do you work with your customers in developing customized solutions to meet their requirements? If yes, could you pick up one or two cases from the CV segment, if any?
Infineon is aggressively supporting the OEMs and Tier-1s in developing solutions to meet today’s and future requirements, as we endorse our corporate philosophy of sustainability. Infineon components are key enablers for vehicle manufacturers to meet the challenge of CO2 emission reduction, thereby reducing carbon footprints. These solutions are indigenously developed, something we are proud of. Battery Management System (BMS) is another application we would like to focus on, keeping in mind the future of the automotive industry.
Infineon is currently working with the two-wheeler segment to develop products for body applications. Considering the growth in the domestic market for two-wheelers, we are also developing solutions for fuel injection.
Could you briefly outline how auto electronics can transform the automotive sector in a growing market like India in the next few years?
Semi-conductors have always been pivotal in bringing new technology into the automotive segment. Our enduring success in this area is due to a clear strategic focus on automotive applications and standards, the understanding and insights that have come with almost 40 years of dedicated experience and our ability to continually innovative in product development.
Going further, the use of electronics will accelerate new norms. One classic example is the development of power train electronics. We have initiated discussions with various OEMs and Tier 1s to develop the EGI system for two-wheeler applications.
With the growing domestic market demand and our continuous endeavour to cater to the needs of our customers, we are well poised for growth in the coming years. Our focus is very clear – developing solutions for a safer, more eco-friendly environment for future generations.