Igarashi Motors set to accelerate its growth mainly due to the increased focus on fuel efficient technologies. The company supplies motors which help automakers reduce emission in their vehicles. With many countries focusing on climate change and to make higher fuel efficient vehicles, Igarashi Motors is set to gain.
The Chennai-based company manufactures motors used in electronic throttle control (ETC), exhaust gas recirculation (EGR) and turbochargers which put together is called as torque actuator motors (TAM). Since power electronics play a pivotal role in adherence to contain emissions the importance of TAM has only increased.
Nine countries which account for nearly 80 percent of world's total passenger car market have set guideline to reduce emissions by 20 - 50 percent in the next five years. The global market of TAM is nearly 90 million motors annually and is set to grow to about 200 million by 2021 with increasing focus by automakers to produce fuel efficient vehicles.
Igarashi Motors account for nearly 21 percent of the global market share in the TAM segment. The EGR and turbochargers have less than 30 percent penetration in the automobile sector, this is indeed an opportunity for the company to grow. The company is one among to produce low-cost DC converters, due to which it was able to expand its margins despite severe competition.