SOE (6283.TW) announced the establishment of a joint venture with India-based Sensetek Optical Private Limited in the state of Haryana, India. This investment marks SOE’s strategic entry into India’s automotive electronics market and represents a key milestone in the execution of the Company’s long-term global expansion strategy.
The joint venture is located in the IMT Industrial Area of Manesar, Gurugram, Haryana—one of India’s major industrial clusters. The operation has successfully secured its first designated production project, with the end customer being a leading Japanese automobile manufacturer operating in India. Mass production is planned to commence in July 2026. Through this joint venture, SOE will provide automotive electronic products and solutions to customers in India and international markets, further strengthening its global manufacturing and customer service capabilities.
Strategic Rationale: Leveraging India’s Structural Growth Opportunities
SOE’s expansion into India is based on a comprehensive assessment of the country’s long-term automotive industry fundamentals and growth potential. India is increasingly recognized as a core driver of future global automotive demand, supported by the following structural factors:
1. Large and Expanding Market with Favorable Demographics
India, the world’s most populous country with over 1.4 billion people, continues to benefit from a rapidly growing middle class and a predominantly young consumer base. These demographic advantages support sustained growth in vehicle demand. India is currently the world’s third-largest automobile market, with annual vehicle sales exceeding 5 million units, and market volumes are expected to continue expanding over the medium to long term.
2. Supportive Policy Environment and Electrification Trends
The Indian government has implemented a series of initiatives aimed at strengthening domestic manufacturing and accelerating transportation modernization. Programs such as “Make in India” and the National Electric Mobility Mission Plan (NEMMP) provide policy incentives and tax benefits for localized production of automotive electronic components, creating a favorable operating environment for long-term investment.
3. Localized Operations to Enhance Competitiveness
By partnering with Sensetek, a local company with established operational experience, SOE is able to effectively localize manufacturing and operations, optimize supply chain efficiency, and reduce potential trade and cost barriers. This approach enhances operational flexibility, improves cost competitiveness, and supports timely response to customer demand.
4. Strengthening Global Presence and Long-Term Value Creation
The establishment of the joint venture represents an important step in SOE’s global manufacturing footprint and serves as a strategic platform for future growth in high-potential markets. Management expects this investment to contribute positively to the Group’s long-term revenue growth, operational diversification, and overall corporate value, reinforcing SOE’s sustainable growth trajectory over the coming decade.
