Saietta Group PLC (AIM:SED), the electric drivetrain technology specialist, has landed a second deal via its Indian joint venture worth around £12.7 million from an existing manufacturing (OEM) client.
The agreement involves the supply of complete electric drivetrains (eDrives) for a new model of light commercial vehicle (LCV).
"This is the second order secured by our Indian JV in quick succession from the same mainstream Indian lightweight vehicle manufacturer which demonstrates the success of our technical collaboration," said chairman Tony Gott.
"We have solutions for two further product lines for them also under development which we expect to mature into orders in time. We believe this confirms market pull for our modular products and services in this highly demanding, cost-competitive market."
The initial pilot order, valued at around £106,000, sets the stage for a larger production scale. Saietta anticipates ramping up production to achieve a target volume of approximately 60,000 units over the next five years, beginning in the second quarter of 2024.
Its latest success is anchored in its innovative radial flux technology (RFT) motor, combined with a custom controller, transmission, axle, and vehicle control unit.
It represents the first major contract for their new RFT eDrive, validating the vast commercial potential of this technology.
It also follows a previous order - for £11.2 million - from the same OEM for Saietta's axial flux technology (AFT) motor, confirming the company's growing influence in the Indian electric vehicle market.
The development and design of these eDrive solutions were conducted at Saietta's Global Technical Centre in Silverstone, UK.
Production will take place at Saietta VNA's new 33,000 sq-ft facility in Delhi, India, leveraging a predominantly local supply chain.
With the AFT eDrive already in production and the RFT system set to begin in Q2 2024, Saietta is poised to make a significant impact on the Indian LCV market. Vehicles equipped with these advanced eDrives are expected to hit Indian roads in the first half of 2024.
In light of these developments, Saietta is actively seeking additional funding to bolster working capital and seize the evident opportunities in the Indian lightweight vehicle sector.
On Monday it confirmed it is in "advanced discussions" with key stakeholders and anticipates providing further updates as these negotiations progress.