In a recent interview with TimesTech, Vijay Kumar, Co-founder of TSUYO Manufacturing Pvt Ltd, shared insights into the company’s 300% growth in FY22-23 and its strategies for entering global markets. He highlighted their focus on powertrain solutions for the evolving Indian EV market and the challenges and opportunities that come with scaling manufacturing facilities and expanding overseas. With a planned $2.0M investment in Capex and R&D, Tsuyo aims to target $5.0M in revenue next year, further solidifying its position in the electric vehicle industry.
Read the full interview here:
TimesTech: How is Tsuyo positioning itself in the evolving Indian EV market’s demand for powertrain solutions?
Mr. Vijay: Tsuyo primarily started with Mid Drive Solutions for Three-Wheeler and Four-Wheeler while for last one year, the effort has already been unfolded in the other categories like Two-Wheeled, Four Wheel Heavy commercial and also into off-road applications as well with industrial solutions like Electric Forklift.
Moreover, applications specific demand has already been take care into consideration while there are several other aspects in terms of below perspectives, where Tsuyo is currently involved with and trying to make this more and more stronger through their internal execution strategy like:
After Sales & Service: With the advent of EV, the demand of after sales & service, road side assistance and availability of genuine spares and workshop station have taken a centre stage of requirement. Company has already taken this need of hour as key introduction as standard practice and support for all of their customers and also as open support platform for all kind of EV users which will surely augment the adoption of EV more faster and eliminate the existing deep apprehension towards riding and using EV against the sudden breakdown with no instant service or availability of spares.
Customization: Evolving demand in EV has pushed many vehicle manufacturers to come up with specific design and utility while cornering the scope of using off-the-shelf product where customization, boutique manufacturing solution or fresh design from scratch and faster prototype development are the key to success. Company has extensive holistic solution towards providing customization with in-house R&D and product development assistance and also extending On-Site installation and validation exercise of the complete vehicle.
Integrated System Solution Provider: With the incessant improvisation of EV demand, most of the OEMs want a seamless experience in vehicle solution for their respective target B2C or B2B customer. Considering this intent, most of the serious and sincere OEMs prefer to keep as their vendor as system solution provider to integrate the relevant parts together and validate the kit at their end and extend as solution provider rather giving as component solution provider. In Powertrain space, preferable solution is seeking as keeping Motor, Controller, Gearbox, Axle, DC-DC converter, VCU, Display, Wiring harness and sometimes accessories like IoT solution as integrator like OTAs. The company has developed and also partnered with strategic other specific solution provider in the space like OTAs, VCU and other to make the whole offerings as System solution provider.
Futuristic Products Offerings: Tsuyo has already been instrumental in creating always product and services one step ahead from the existing other peers. Currently Tsuyo has already introduced never like 18months and 2 years of manufacturing warranty in L3 Segment with their new IPM launch, bringing 2in1 and 3in1 solutions in Powertrain space and launching the same in Dec’2023 EV Expo (Pragati Maidan, New Delhi) and also launching Display and new type of Controllers with on-board IT interface and also own displays(OBD/Cluster) for L1/L2, L3 and L5 initially and also L3 and L5 Axle solutions in the month of Jan’23.
Conversion Market (ICE Engine to Electric): The company is already working on TATA Ace Conversion, 3T Mini Excavator (Electric fully), ICAT approval underway for BAJAJ RE and also working on Wheel Loaders and Mining Dump Trucks conversion projects.
Industrial traction Solutions: In Dec’23, Tsuyo is already launching their esteem solutions for the Electric Tractors which are first time in India and also has files several Patents in same.
TimesTech: What were the pivotal factors behind Tsuyo’s remarkable 300% growth in FY22-23 and how do you plan to build on this success?
Mr. Vijay: The pivot behind this aggressive growth is the excellent Tsuyo Family and in-house R&D effort and impeccable product quality and service in this market where providing a full line solution is quite rare.
Going forward, impetus on building strong pool of resources and best EV team and also seeding R&D to make a self-independent as most young and innovative EV components team to foster a futuristic frontier new technologies in the EV space enabling to provide critical solutions to most of the EVs problems and solving the latent need of the end users.
TimesTech: Could you share your strategies for entering overseas markets and your future expansion plans?
Mr. Vijay: Tsuyo is currently already present in overseas market like Bangladesh, Sri-Lanka, Nepal and Philippines while going forward the impetus on extending the solutions and expanding the customer base is quiet in consideration. With the growing demand in overseas and frequent enquiries in-flow to us for powertrain support and also for design solutions, the company is already in underway to put some satellite offices and also extensively working on resources to extend the solution more faster and to meet most of the requirements as what currently coming. Market like, Bangladesh, Nepal, Indonesia, Vietnam, Thailand, Philippines and Africa are key to progress. The company has many enquiries to work on currently and trying to build the enough resources and bandwidth to manage these requirements in more constructive way.
The company is also in look out of right channel partners in these countries to extend and establish the network for easy deployment of solutions and also to keep a close support to end users for a seamless and easy experience with trouble-free realisation.
TimesTech: With your upcoming high-power motor offerings, what opportunities and challenges do you anticipate?
Mr. Vijay: Most key challenges towards high power motor offerings are mainly towards like managing the cost of the product as per the OEM expectation and matching the benchmark prices to the imported products. Keeping in consideration of immature EV components supply chain as localised support, less volume and also huge integration and validation exercise, the price expectation is a big key challenge.
Furthermore, Testing and validation and also having experienced resources are another challenge in this area which poses lot of constraints. Keeping future demand in place, the requirement of putting of right and balanced expansion keeping overheads and facility utilization is also a big key to look at. Delay in ICAT and ARAI approval process at components level also posing a big challenge towards implementation and improvisation.
TimesTech: What are the key areas of focus for Tsuyo’s planned $2.0M investment in Capex and R&D, as you target $5.0M revenue next year?
Mr. Vijay: The primary phase-I expansion to support the growing numbers in L3 and L5 volume and also to support upcoming L1/L2 supplies where capex has been planned around where most of the equipment are around the corner and underway for installation and ramp up in coming few months. Initial N1 category expansion to support the ready ramp up volume and also future plans are also on card to meet the bigger N1 category support. New factory place and capex have also been planned and kicked off.
In R&D many capex towards new software, licenses, prototypes development, testing and validation platform and also new research based expenditures are underway. Resources are key and investment towards the learning and development of resources have also been planned and also getting utilized for same.
TimesTech: What are the main challenges and opportunities as Tsuyo scales its manufacturing facilities and expands overseas?
Mr. Vijay: Main challenges during the scale up and building new manufacturing facilities are timely execution, resource deployment, incentives support from government and banking support in time. There are several other nuances towards project management in view of sudden erupt in OEMs demand and also new product certification and licenses and approval requirement. Getting factory approval and other quality approval and government based approvals on new factories in time and timely execution at all fronts to keep the pace in check, are real and momentous challenges to deal with.
Currently overseas expansion is mainly in the capacity of mere satellite offices and touch points in expanding along with our channel partners are the only way out and the key challenges resort with the identification of initial right partner so that the planned expansion shouldn’t get compromised.
