Uno Minda Limited, a leading Indian auto components manufacturer, announced today the formation of a strategic joint venture with China's Suzhou Inovance Automotive Co. Ltd. to manufacture high-voltage electric vehicle components in India. The joint venture marks a significant step in Uno Minda's expansion into the growing electric vehicle market.
The partnership will leverage Inovance Automotive's technical expertise in EV powertrain systems and Uno Minda's strong manufacturing presence in India. The joint venture will focus on developing and manufacturing critical EV components including combined charging units, e-axles, inverters, and motors for four-wheeler passenger and commercial vehicles.
Under the agreement, Inovance Automotive will acquire a 30% stake in Uno Minda Auto Innovations Private Limited, a wholly-owned subsidiary of Uno Minda, through its Hong Kong-based investment arm. Uno Minda will retain a 70% controlling stake in the joint venture company.
The joint venture demonstrates both companies' commitment to the Indian EV market, with India designated as the exclusive territory for manufacturing and distribution. The agreement includes provisions for the joint venture to sell products under both the Uno Minda and Inovance brands, as well as to original equipment manufacturers.
The governance structure reflects the strategic nature of the partnership, with Uno Minda appointing five directors, including one independent director, while Inovance will nominate three directors, including one independent director. A Uno Minda nominee will serve as the Chairman of the joint venture's board.
This collaboration follows a technical license agreement between the two companies announced in June 2024, indicating a planned progression toward deeper strategic cooperation in India's evolving automotive sector.
The joint venture represents a significant development in India's EV component manufacturing landscape, combining local manufacturing capabilities with international technical expertise to serve the growing domestic electric vehicle market.