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Uno Minda, a top tier-1 supplier, has announced that its Board approved entering into a Joint Venture agreement with Buehler Motor, a Germany-based company, which is a global leader in customized mechatronic drive solutions. The aim of the joint venture agreement is to develop, produce, and market traction motors for India and other SAARC countries.
The JV will provide traction motors to power battery-driven electrified two and three-wheelers. Uno Minda will own 50.1% of the JV, while Buehler will retain the rest.
Buehler, a 165-year-old company, is currently based in Nuremberg in Germany. It has manufacturing facilities in the Czech Republic, Germany, the USA, China, and Mexico. It supplies parts for aviation, automotive, and other industrial applications. Its expertise extends beyond DC and BLDC motors, pumps, and gear motors.
The capital expenditure for the joint venture is estimated at Rs 110 crore which includes sustaining Capex for the next 6 years. This investment will be made to meet demand. To finance the capital expenditure, the company will invest around Rs 17 crore in equity. The remaining amount will be paid through debt and internal accruals.
Nirmal K Minda, CMD, Uno Minda Group said, “Uno Minda has been in continuous pursuit of new and advanced 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 localization and manufacturing of traction motors for the Indian automotive market.”
Mark Furtwangler, the CEO, of Buehler, said, “We are delighted to partner with Uno Minda, a leading player in automotive components and systems, to foray into 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.”