EQS-News

FRIWO AG: FRIWO adjusts annual outlook based on declining demand – Joint venture in India on track following start of production - Seite 2

From 2024 onwards, earnings are then expected to pick up significantly due to the expected substantial profit contributions from the booming e-mobility business in India and a significant pick-up in business activity in Europe and North America.

"As anticipated, demand from the e-mobility sector this year cannot match the boom year of 2022. After the second quarter developed weaker than expected, we have to adjust our annual forecast for 2023. However, in view of a generally positive trend towards e-mobility solutions and earnings contributions from our joint venture in India expected from 2024 onwards, as well as growing business from North America, FRIWO is very confident of returning to a sustainably profitable growth path from the next financial year onwards," comments Rolf Schwirz, CEO of FRIWO AG.
 

Production for e-mobility solutions in India started in the second quarter

The basis for the great optimism is the continuing very high demand for e-mobility solutions for the dynamically growing market in India, which is served via the joint venture with UNO MINDA through a production plant near New Delhi. As previously announced, the production facility went into operation in the second quarter of 2023 and supplies the first Indian two- and three-wheeler manufacturers with e-drive solutions. These include the necessary hardware as well as a suitable software architecture. The joint venture, in which FRIWO holds a 49.9% stake, has already received its first order from a Japanese customer, in addition to incoming orders and letters of intent in the mid three-digit million euro range from regional customers. Further contracts are expected to be signed in India and with Japanese producers in the coming quarters. The joint venture is aiming for a market-leading position in the booming Indian e-mobility market for two- and three-wheeled vehicles, through which a large part of mobility in India takes place. Industry experts estimate the addressed market volume at around 4.5 million vehicles by 2027.