UNO Minda collaborates with Suzoh Innovance to manufacture electric vehicle components in India. Stock surges by 18% post-deal, signalling a push into electric four-wheelers.
Uno Minda Limited (formerly Minda Industries Limited), an automotive component manufacturer, has signed a technical licence agreement with Suzhou Inovance Automotive Company, China, to produce and sell high voltage categories for passenger and commercial vehicles in India.
After announcing a technical licence agreement (TLA) with Suzhou, China, shares of UNO Minda surged by as much as 18.09 per cent to reach a new 52-week high of Rs 1,018.75 per share.
The electric vehicle products include a Charging Control Unit (CCU), an EV inverter, EV motors, and next-generation 3-in-1 electric drive systems (e-Axle). This partnership significantly expands Uno Minda’s e-4W product portfolio, effectively catering to the growing Indian EV market.
Founded in 2003, Inovance is a global provider of products and solutions in the general industry, intelligent elevators, rail transit, and new-energy vehicles (NEVs), with over USD 4.2 billion in revenue in FY23.
Suzhou Inovance Automotive Co., Ltd., a subsidiary of Inovance, has operations in several countries, including Germany, France, the United Kingdom, Switzerland, Norway, Hungary, India, Japan, Thailand, and China. Inovance Automotive supplies intelligent components and systems for electric and hybrid vehicles to major Chinese and Global PV and CV OEMs.
India’s passenger electric vehicle (EV) market experiences rapid growth, with sales nearly doubling in FY24 despite limited model availability. This trend is expected to accelerate with new vehicle launches and the entry of global OEMs.
Nirmal K Minda, CMD, Uno Minda Group, asserts the company’s dedication to leading electric vehicle transformation across all vehicle categories. He also mentions their success in e-2W and their building a strong portfolio for e-4W. Through this collaboration, they aim to enhance their EV product range for four-wheeled vehicles, accelerating India’s shift towards a sustainable and electrified future.
Li Juntian, CEO of Inovance Automotive, expresses the company’s commitment to delivering top-notch solutions for the New Energy Vehicle market. He highlights their motive to grow their presence in India’s expanding EV market while developing innovative integrated electric drive units for the next generation of electric and hybrid vehicles.
UNO Minda, a global manufacturer and supplier of proprietary automotive solutions and systems to OEMs as Tier-1, sees its consolidated net profit rising 58.3% to Rs 289.11 crore in Q4 FY24, compared with Rs 182.65 crore in Q4 FY23.
Revenue from operations increases 31.3% YoY to Rs 3,794.02 crore in Q4 FY24. The counter jumps 22.2% to end at Rs 862.65 on Wednesday, 5 June, 2024.
