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News: Uno Minda in a regulatory filing on stock exchanges, has announced that it has entered into a Technical License Agreement (and eventually a JV) with Suzhou lnovance Automotive Co., Ltd., China for manufacture and sale of select high voltage category electric vehicle products for passenger vehicle and commercial vehicle in India. The select electric vehicle products include Charging Control Unit (CCU), EV inverter, EV motors and next generation 3-in-1 electric drive systems (e-Axle).
Views: Increase in content/vehicle is a constant penchant at the company with this new partnership expected to significantly expand Uno Minda's e-4W product portfolio, enabling them to effectively cater to the growing Indian EV market. Uno Minda continues to be aggressive on the capacity expansion plans. It anticipates to grow >= 1.5 times the industry growth rate over long term. We expect the company to maintain its outperformance trend due to its persistent focus on increasing content and tangible work being done on the EV .components front. Consequently, we hold a positive view on the stock.
Impact: Positive