Uno Minda Limited (formerly known as Minda Industries Limited), an automotive component manufacturer, has entered into a technical license agreement with Suzhou Inovance Automotive Company Limited.
The agreement pertains to the development and manufacturing of high-voltage powertrain components for electric passenger vehicles (PV) and commercial vehicles (CV), such as combined charging units, e-axles, inverters, and motors.
In addition to the technical license agreement, the Board of Uno Minda has also given in-principle approval to enter into a joint venture with Inovance Automotive or any of their affiliates, subject to necessary approvals.
The joint venture agreement is yet to be finalized and executed, but it is expected to further strengthen the partnership between the two companies and facilitate the manufacturing of EV products in India.
The proposed joint venture is in line with Uno Minda's strategy to expand its presence in the EV segment and capitalize on the growing demand for electric vehicles in the country, said the Indian company. The company has been investing in research and development to develop innovative solutions for the automotive industry and has a strong presence in various product categories, including switching systems, acoustic systems, alloy wheels, and lighting systems.
The technical license agreement and the proposed joint venture with Inovance Automotive are expected to help Uno Minda enhance its product portfolio, improve its technological capabilities, and strengthen its position in the EV market.
The agreement aims to localize high-technology EV components in India, enabling Uno Minda to develop, manufacture, and sell these products domestically. The Indian company said the collaboration is expected to provide Uno Minda with access to cutting-edge technology and expertise in the rapidly growing EV market.
The disclosure from Uno Minda comes at a time when the Indian automotive industry is witnessing a significant shift towards electric mobility. With the government's push for EVs and the increasing focus on sustainability, the demand for EV components and powertrain solutions is expected to grow substantially in the coming years. Uno Minda's collaboration with Inovance Automotive is a strategic move to address this growing market opportunity and contribute to the development of the EV ecosystem in India.