Even though the last six months have seen a flurry of technological MoUs, mergers, and acquisitions involving global EV component makers and Indian suppliers, the one signed in October 2022 by the UK-based Saietta Group and Gurugram-based Padmini VNA Mechatronics is notable. While the majority of the other businesses will concentrate on producing items for the Indian EV market, the Saietta-VNA joint venture is also looking at producing EV components for export. 

 

Saietta inked a master supply deal with India's AVTEC, a CK Birla Group subsidiary, to produce and sell Saietta's e-drive system, which is intended for light-duty electric vehicles such as two, three, and four wheelers.

 

The collaboration brings together AVTEC's competence in gearbox production, which will be provided to the first Indian light-duty mobility OEM in Q3 of CY2023. Saietta and AVTEC will reserve 80,000 units from the original capacity of 150,000 e-drive systems for customers worldwide for the first client, who is expected to install the solution in both three- and four-wheelers.

 

Saietta VNA, a joint venture founded in May 2021, will manufacture Saietta's axial-flux electric motors in India and combine them with Saietta transmissions produced at AVTEC's Chennai factory. As a consequence, a 48V-96V e-drive system will be developed that is lightweight, small, and competitive for light-duty mobility vehicles in India and throughout the world.

 

According to Tony Gott, executive chairman of the Saietta Group, "India is one of the most challenging markets globally in terms of climatic conditions, use cases, and cost, and we will build our volumes in India and the economies of scale achieved here will enable us to export from the country."

 

“We also acknowledge that India has enormous potential to serve the rest of the Asian market in the future. Having stated that, we will also look into exporting to Europe and Africa. Our goal with the Saietta VNA JV is to significantly increase the capabilities of Indian operations over the next few years. In terms of climatic conditions, use cases, and cost, India is one of the most challenging markets in the world. We will increase our volumes in India, and the economies of scale acquired here will allow us to export from the nation,” he added.

 

Gott pointed out that, “We are now working with ten significant MNC OEMs in the two-, three-, and four-wheeler categories, with two of them being operating in Europe. These ten OEMs are expected to launch their EV initiatives within the next three years. As a result, our current focus is on ensuring that our India businesses are well-positioned to allow us to embark on rapid expansion, including tapping into export potential.”

 

While Europe remains a solid market opportunity, the ASEAN region's sheer market size and potential provides for a compelling commercial argument. Over 200 million petrol-powered two-wheelers are registered in Southeast Asia, with motorcycles owned by 80% of households in Indonesia, Malaysia, Thailand, and Vietnam. However, the widespread usage of petrol-powered internal combustion engine motorcycles continues to have a negative impact on urban air quality and the environment, making electric two-wheelers a far more appealing option. According to research, the worldwide market for electric two- and three-wheelers is worth over $150 billion. 

 

The Saietta Group is also optimistic about the demand for its innovative e-drive systems in the highly competitive Indian market. According to Gott, "the number of light-duty vehicles currently operating in India, including two, three, and four-wheel categories, stands at around 250 million vehicles. While there are many engine combinations - CNG, LPG, petrol, and diesel - as the government and consumer pressure intensify, the bulk of these cars will become electrics," he said.