Indian automotive component supplier, Uno Minda has decided to enter into a Joint Venture (JV) agreement with Germany’s supplier of customized mechatronic drive solutions, Buehler Motor (Buehler) to develop, manufacture and market traction motors in India and other SAARC nations.
After announcing a record quarterly revenue and plans to invest Rs 400 crore towards setting up of lighting business for four wheelers Uno Minda is all set to expand its offerings for the electric vehicle segment.
The JV will offer traction motors for battery-driven electrified two- and three-wheelers.
Uno Minda will hold 50.1% stake in the JV while the remaining stake will be held by Buehler.
Buehler is 165 years old organization currently headquartered in Nuremberg, Germany with manufacturing facilities in Germany, Czech Republic, USA, Mexico and China. It supplies parts for automotive, aviation and other industrial applications. Its expertise goes beyond DC and BLDC motors, gear motors and pumps.
The joint venture plans to incur capital expenditure of Rs 110 crore including sustaining Capex over a period of next six years, the investment will be scheduled to meet the demand.
The company will be investing around Rs 17 crore as an equity investment in JV to part finance the above capital expenditure, while the remaining will be funded through a mix of debt and internal accruals of the joint venture entity.
Nirmal K Minda, CMD, Uno Minda Group said, “Uno Minda has been in a continuous pursuit for new and advance technologies facilitating smarter, cleaner and safer transportation. We are extremely delighted to partner with Buehler to enhance our electric vehicle offerings. This partnership will help us combine our engineering expertise and technologies to accelerate the localisation and manufacturing of traction motors for Indian automotive market.”
Mark Furtwangler, CEO, Buehler said, “We are delighted to partner with Uno Minda, a leading player in automotive components and systems, to foray in one of the largest automotive markets: India. Our combined strengths – Uno Minda’s expertise in value-focused engineering, manufacturing process and customer connects and Buehler Motor’s technical expertise, global experience in motors and access to future technology – are a potent recipe for success in growing electric vehicle markets in India.”
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