Shares of Uno Minda Ltd climbed 2% to Rs 909 in morning trade on 18 February after the auto components manufacturer revealed a joint venture (JV) agreement with Suzhou Inovance Automotive Co Ltd and its wholly-owned subsidiary, Inovance Automotive (HK) Investment Co Ltd.
The partnership aims to develop and manufacture high-voltage EV powertrain products for both passenger and commercial vehicles.
As part of the agreement, Inovance Automotive (HK) Investment Co will acquire a 30% stake in Uno Minda Auto Innovations Private, currently a wholly-owned subsidiary of Uno Minda. This subsidiary will be converted into a joint venture, with Uno Minda retaining a 70% stake. The new entity will focus on producing key EV powertrain components, including combined charging units, E-axles, inverters, and motors.
Operating in India, the joint venture will market its products under both the Uno Minda and Inovance Automotive brands. Its governance structure will include eight directors, with Uno Minda appointing five (including the chairman) and Inovance Automotive appointing three. The agreement also outlines governance protocols such as board representation, share transfer restrictions, and capital structure provisions.
This collaboration builds on Uno Minda’s existing relationship with Inovance Automotive, following a technical license agreement signed in June 2024. By leveraging Inovance Automotive’s expertise in EV powertrains, the venture aims to strengthen Uno Minda’s footprint in the electric vehicle components market.
However, at 12:02 pm, the shares of Uno Mind were trading 2.36% lower at Rs 869.50 on NSE.
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