Focus Area

Advancing Innovation in Automotive, Machinery, and Electronics Manufacturing Sectors

IFC collaborates with companies in the automotive, electronics, and machinery manufacturing sectors to enhance manufacturing complexity in developing countries, leveraging the significant employment multiplier effect and benefits to small and medium sized enterprises (SMEs).

Why Prioritize Growth in Electronics, Automotive, and Machinery Manufacturing Sectors?

Manufacturers in these sectors are central to modern life — producing vehicles, electronics, machines, and household goods used by billions. In emerging economies, these industries are also key drivers of job creation, export growth, and economic resilience.

IFC helps these sectors become more:

Integrate LEAN process excellence with fit for purpose Digital and Automation solutions — derisked by IFC financing options and partner ecosystem
Provide better, and longer tenor, access to capital and global markets to strengthen global supply resilience
Adopt clean production practices and circular economy principles to reduce environmental impact
De-risk investments in Emerging Markets
Encourage clients' suppliers to reduce scope 3 emissions through initiatives like the Global Trade Supplier Finance program.

Through innovative financing and advisory support, IFC empowers companies to grow responsibly, reduce emissions, and contribute to local development while maintaining global competitiveness.

IFC’s Work in Action

Automotive Manufacturing: IFC invested in a last mile e-mobility company wholly owned by Mahindra & Mahindra. The transaction was aimed at scaling up the manufacturing of electric three-wheelers that are more affordable and will help the country reduce the emissions that contribute to air pollution. The investment has been a boost for microentrepreneurs in India, who rely on lower-cost vehilces, and is paving the way for the auto industry's shift from fossil fuel to electric vehicles. Already, vehicles produced by the car have cumulatively led to large reductions in emissions, equivalent to the impact of planting 4.3 million trees, according to the company.
Semiconductors and Electronics Manufacturing: IFC signed a $250 million sustainability-linked loan with AT&S Austria for their semiconductor substrates plant in Malaysia. This investment supports the construction of a greenfield integrated circuit substrate manufacturing plant in Kulim, Malaysia. The project will create 6,000 skilled jobs and is part of AT&S's larger plan to invest $3 billion over the next three years to become one of the top three integrated circuit substrate manufacturers by 2027.
Machinery Manufacturing: IFC committed an investment of up to EUR 150 million in Arcelik A.S. and its subsidiaries, including Singer Bangladesh Limited. This investment supports Arcelik’s working capital needs in Turkey and the construction of a greenfield home appliance plant in Bangladesh. The project aims to enhance Arcelik’s production capacity and promote sustainable practices in the manufacturing of household appliances.

Driving Technological Innovations

The integration of artificial intelligence (AI) and digitalization in manufacturing processes is increasingly a necessity with respect to maintaining competitiveness through enhancing efficiency, reducing operational costs, and promoting sustainability. AI-driven solutions can complement best practices such as LEAN, in predictive maintenance, quality control, and supply chain optimization. These advances are enabling manufacturers to improve productivity and adapt to changing market demands. IFC offers a LEAN Advisory program to complement finance offerings.

The shift towards electric vehicles (EVs) is a once-in-a-generation transformation of the automotive sector, allowing new companies to challenge legacy automakers and increase competition. EVs offer an alternative to traditional fossil fuel-powered vehicles, reducing greenhouse gas emissions and dependence on non-renewable energy sources. IFC supports the development and expansion of manufacturing through the EV value chain, helping to accelerate the transition to cleaner transportation solutions, and enhance supply chain resilience.

Tychy, Poland - June, 16th, 2011: Cars production line in Fiat factory in Poland. Photo:iStock (657996382)

World Bank's RISE Program

RISE is a global initiative that provides knowledge, technical assistance, and finance facilitation to

create an enabling business climate generating new opportunities for developing inclusive supply chains of clean energy products in targeted low- and middle-income countries, bringing value addition and benefits of diversified economies; and
support global decarbonization efforts through more diversified and inclusive supply chains of clean energy products for the global economy.

Learn more

How IFC Delivers Impact in the Manufacturing Sector

Sustainable Industrialization Knowledge Source

IFC is committed to building sustainable markets and supply chains that prioritize environmental responsibility while unlocking economic opportunities.
Global Trade Supplier Finance

IFC provides short-term financing to small and medium-sized suppliers in emerging markets. The program helps improve supplier cash flow, build more resilient supply chains, and support the integration of smaller businesses into global trade networks.
Project Preparation & Advisory

IFC offers tailored project preparation and advisory services that complement its investments — helping manufacturers improve performance, enter new markets, and adopt sustainable, inclusive business practices.
Circularity

IFC helps companies design out waste and improve resource efficiency by rethinking how materials are sourced, used, and reused — advancing circular economy practices across key manufacturing sectors.