Saietta Group PLC (AIM:SED) said it has now confirmed its partnership for electric-powered vehicles in India with AVTEC.
Motors and inverters will be supplied by Saietta with AVTEC providing the transmissions for the e-Drives, which are optimised for light-duty applications including scooters, motorbikes, rickshaws and urban delivery vehicles.
AVTEC will have a master supply agreement, with the chain also involving tier-1 companies for key components including the gearbox and power electronics.
Production for a contract with one of the largest OEMs in the Indian light-duty mobility market is on track to start in the third quarter of 2023, Saitta added in a statement.
Over the course of the initial five years of the master supply contract, Saietta and AVTEC will produce a minimum of 150,000 complete e-Drive units for customers globally with 80,000 units already reserved for the confirmed launch OEM in India.
AVTEC's transmissions and Saietta's motors and inverters will both be made in India, with the agreement also for the two companies jointly to promote e- Drive technology to other prospective customers.
More than one million eMobility vehicles were registered in India last year.
In the statement, Tony Gott, Saietta’s executive chairman, said: "When bringing any new technology to the mass market, it's critically important to work with supplier partners who have a proven track record of delivering at the required scale, on time, on cost and on quality. AVTEC undoubtedly ticks every one of those boxes.
“Working in partnership with AVTEC, we will benefit from their transmission expertise while we focus on our core competencies of motor and inverter development."