Saietta Group PLC (AIM:SED) said it has hit an "inflection point", securing an order worth up to £11.2 million from a leading Indian manufacturer in the light commercial vehicles (LCVs) sector.
The company's Indian joint venture, Saietta VNA, will supply the complete electric drivetrains, known as eDrives, which feature Saietta's proprietary Axial Flux Technology (AFT) motors.
The deal establishes Saietta VNA as the exclusive eDrive supplier for one of the client's LCV product lines and is set to generate a minimum of 40,000 complete systems over a five-year period.
The Saietta eDrive
Saietta anticipates a second order for another product line in the coming months, potentially doubling the total volume to 80,000 systems over five years.
The initial contract, covering the first three months of production, is worth around £420,000.
Engineers at Saietta's Global Technical Centre in Silverstone, UK, designed the eDrives.
The company will manufacture them at a new 33,000-square-foot facility in Delhi, India. Production will commence in the coming weeks and the first vehicles featuring Saietta's technology are slated to hit Indian roads by the first half of 2024.
Chairman Tony Gott told investors: "Saietta has reached the point of inflection as we go into series production at our all-new production facility in Delhi, India.
"This purchase order received from a global manufacturer of one of the leading light commercial vehicles in India, validates the market pull for our modular products and services in this very demanding and cost-competitive market."