Uno Minda, a leading player in the automotive components sector, has recently announced a significant development in the electric vehicle (EV) space. The company revealed on April 30, 2025, that its board of directors, along with its joint venture (JV) partner, has approved a detailed project report (DPR) for the development and manufacturing of high-voltage powertrain products. This new initiative, which is set to be a cornerstone for the company's EV business, comes with an investment of ₹423 crore.

JV Partnership with Innovance Automotive

This investment is part of Uno Minda's partnership with Innovance Automotive, a leading name in the global EV solutions sector. The collaboration aims to produce advanced high-voltage powertrain solutions specifically for electric four-wheeler passenger vehicles (4W PVs) and commercial vehicles (CVs). Some of the key components under this initiative include combined charging units, e-axles, inverters, and motors.

This JV follows a previous announcement made in February 2025 where Uno Minda entered into an agreement with Uno Minda Auto Innovations Pvt Ltd, Suzhou Innovance Automotive Co Ltd, and Innovance Automotive (HK) Investment Co Ltd to push forward the development of these high-voltage solutions. As part of the agreement, Innovance Automotive, through its subsidiary Innovance Automotive (HK) Investment Co Ltd, will invest in 30% equity shares in Uno Minda Auto Innovations Pvt Ltd, which is already a fully owned subsidiary of Uno Minda. This will result in the formation of a joint venture company dedicated to the manufacturing of powertrain solutions.

Investment in the JV and Future Prospects

Uno Minda has committed to investing ₹114 crore into the equity capital of this joint venture, equating to 70% of the stake. This investment will be made over the next three years, further solidifying the company’s push into the high-voltage EV powertrain market. Initially, Uno Minda will hold 100% of the equity in the JV until regulatory approvals, including PN3 and other necessary clearances, are obtained. After this, Innovance Automotive will acquire a 30% stake in the venture.

This marks a major strategic move for Uno Minda, positioning the company as a key player in the rapidly growing electric vehicle market. The development of high-voltage powertrain products aligns with global trends towards electrification in the automotive industry, and the JV is expected to play a significant role in supplying essential components for electric vehicles in India and beyond.

Stock Performance and Market Impact

Despite the promising future prospects of this collaboration, Uno Minda's stock showed a slight decline, with shares down by 0.22% at ₹892.6 per share by 12:05 PM on April 30, 2025. The stock has faced challenges over the year, with a 15.7% drop in value year-to-date. This highlights the market's cautious sentiment amid broader market conditions, though the long-term potential of the JV in the electric vehicle sector remains a positive signal for the company’s future growth.

Strategic Focus on EV Powertrain Manufacturing
Uno Minda’s foray into the high-voltage powertrain segment demonstrates its commitment to electric vehicle (EV) innovations and sustainability. The focus on high-voltage solutions for 4W PVs and CVs is aligned with the global shift towards electric mobility, which is expected to witness significant growth in the coming years. As more OEMs (Original Equipment Manufacturers) and vehicle owners look towards sustainable solutions, Uno Minda’s investments in high-efficiency powertrain products are likely to make it a key partner in the supply chain for electric vehicles.

By increasing its stake in the JV and moving forward with this major investment, Uno Minda is setting itself up to be an important contributor to the electric vehicle ecosystem, helping to address both the passenger vehicle and commercial vehicle markets with cutting-edge, high-voltage components.

Conclusion

Uno Minda’s latest venture into high-voltage powertrain solutions is a crucial step in its strategy to capitalize on the growing electric vehicle market. The ₹423 crore investment, backed by the JV with Innovance Automotive, promises to deliver innovative and efficient solutions for electric vehicles in India and abroad. With this venture, Uno Minda is positioning itself to play a key role in the EV powertrain sector, contributing to the future of electric mobility and sustainable automotive manufacturing.

This development not only strengthens Uno Minda’s position in the automotive industry but also marks a significant milestone in the company’s long-term strategic goals for growth and sustainability in the global automotive landscape.

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