Shares of Uno Minda saw an uptick of up to 2 percent, reaching Rs 909 during morning trade on February 18. This rise marked a break in the company’s three-day losing streak, following the announcement of a strategic joint venture.
The auto components manufacturer revealed that it has entered into a partnership with Suzhou Inovance Automotive Co. Ltd., along with its wholly-owned subsidiary, Inovance Automotive (HK) Investment Co. Ltd. The primary objective of this collaboration is to develop and manufacture high-voltage electric vehicle (EV) powertrain products. These advanced powertrain solutions will cater to both passenger and commercial vehicles, aiming to enhance the efficiency and performance of next-generation EVs.
The announcement has sparked positive investor sentiment, reflecting confidence in Uno Minda’s expansion into the fast-growing EV segment. The move is expected to strengthen the company’s position in the evolving electric mobility market by leveraging Inovance Automotive’s expertise in powertrain technologies.
As part of the agreement, Inovance Automotive (HK) Investment Co. will acquire a 30 percent stake in Uno Minda Auto Innovations Private Limited, which is currently a wholly-owned subsidiary of Uno Minda. Following this investment, the subsidiary will be restructured into a joint venture, with Uno Minda retaining a majority 70 percent ownership.
The newly formed joint venture will focus on the development and production of key high-voltage electric vehicle (EV) powertrain components. Among its core offerings will be advanced combined charging units, E-axles, inverters, and electric motors—essential technologies that play a critical role in the performance and efficiency of modern EVs.
By leveraging the technical expertise of Inovance Automotive and Uno Minda’s manufacturing capabilities, the venture aims to cater to the growing demand for high-performance EV powertrain solutions in both passenger and commercial vehicle segments. This collaboration represents a strategic step in advancing electric mobility solutions, reinforcing the partners’ commitment to innovation and sustainability in the evolving automotive landscape.
The newly established joint venture will be based in India, with its products marketed under both the Uno Minda and Inovance Automotive brand names. This dual-brand approach aims to leverage the strengths and market presence of both companies while catering to the growing demand for high-voltage EV powertrain components.
The governance structure of the joint venture will consist of an eight-member board of directors, ensuring balanced decision-making and strategic oversight. Uno Minda will have a majority presence on the board, appointing five directors, including the chairman, while Inovance Automotive will designate the remaining three directors.
Additionally, the agreement incorporates key governance mechanisms to maintain stability and transparency in operations. These provisions include board representation rights, ensuring that both partners have a voice in key decisions. The agreement also outlines share transfer restrictions to safeguard the interests of both parties and maintain the intended ownership structure. Furthermore, there are predefined regulations concerning any changes to the joint venture’s capital structure, ensuring that financial decisions align with the long-term vision and strategic goals of both companies.
Through this structured governance framework, Uno Minda and Inovance Automotive aim to foster a strong, collaborative partnership while effectively navigating the evolving landscape of the EV industry.
This joint venture marks an expansion of the existing collaboration between Uno Minda and Inovance Automotive, building upon their previously established relationship. The foundation for this partnership was laid in June 2024 when the two companies signed a technical license agreement. That agreement allowed Uno Minda to leverage Inovance Automotive’s expertise in EV powertrain technology, setting the stage for deeper cooperation in the electric mobility sector.
With this new joint venture, both companies aim to strengthen their foothold in the rapidly growing EV market. Uno Minda seeks to enhance its presence in the electric vehicle component industry by tapping into Inovance Automotive’s advanced technological capabilities and extensive experience in developing high-voltage EV powertrain solutions.
By combining Uno Minda’s strong manufacturing and market reach with Inovance Automotive’s specialized knowledge in EV powertrain systems, the partnership is positioned to deliver high-quality, innovative solutions tailored to the evolving needs of both passenger and commercial electric vehicles. This collaboration is expected to accelerate the adoption of cutting-edge EV powertrain technologies, reinforcing Uno Minda’s commitment to advancing sustainable mobility.
Gurugram-based auto component manufacturer Uno Minda reported a strong financial performance, recording a 20 percent year-on-year growth in net profit. The company’s net profit for the latest quarter stood at Rs 157 crore, up from Rs 131 crore in the same period last year.
In addition to profit growth, Uno Minda also witnessed a 20 percent rise in revenue. The company’s total revenue for the quarter reached Rs 3,136 crore, a significant increase from Rs 2,611 crore reported in the corresponding quarter of the previous year.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the quarter was recorded at Rs 301 crore. However, the EBITDA margin experienced a slight adjustment, settling at 9.6 percent compared to 10.2 percent in the same period last year. This indicates a marginal dip in profitability despite the overall revenue and profit growth.
At around 9:40 am, Uno Minda’s shares were trading at Rs 900 on the National Stock Exchange (NSE), reflecting a 1.2 percent increase from the previous closing price. However, despite this short-term recovery, the stock experienced notable declines in recent weeks, having fallen over 8 percent in the past week and a steep 17 percent over the last month.