Saietta Group PLC Saietta Unveils Light-duty Supply Chain Partner (4325T)

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RNS Number : 4325T

Saietta Group PLC

20 March 2023

20 March 2023

Saietta Group plc

("Saietta", "the Company" or "the Group")

Corporate Update

Saietta Unveils Partner in Asian Light-duty Supply Chain

Saietta Group Plc (AIM: SED), the multi-national business which designs, engineers and manufactures complete light-duty and heavy-duty eDrive systems for electric vehicles, today provides further detail regarding its eDrive system supply chain that has been established to support its first set of commercial agreements with one of the largest OEMs in the Indian light-duty mobility market.

Highlights

   --      Indian automotive powertrain powerhouse AVTEC confirmed as part of eDrive supply chain 

-- Established capabilities in transmission design and manufacture in India to be combined with Saietta's electric motors and inverters

-- Reflects Saietta's Indian lightweight eMobility strategy of engineering eDrive solutions in the UK to be 'Made in India' with a largely Indian supply chain

-- The eDrives are optimised for light-duty applications including scooters, motorbikes, rickshaws and urban delivery vehicles

-- Saietta and AVTEC have stated their desire to jointly promote complete eDrive solutions to additional automotive customers in India and beyond

As announced on 7 March 2023, the supply chain for Saietta's complete eDrive system is now ready to support its first set of commercial agreements which has been secured with one of the largest OEMs in the Indian light-duty mobility market, with production on track to commence in Q3 '23.

The supply chain involves agreements with major tier-1 companies in the region for the key components including the gear box and power electronics. This includes a master supply agreement with AVTEC Limited, one of the largest independent manufacturers of powertrain and precision-engineered products in India.

The relationship brings together AVTEC's transmissions with Saietta's motors and inverters, both to be made in India, to deliver class-leading eDrives for 3- and 4-wheel lightweight vehicles. In addition to the master supply agreement there is a common desire for both, Saietta and AVTEC to not only supply the initial confirmed OEM customer but also jointly promote the combined eDrive technology to other existing and prospective clients, tailoring the core eDrive design to meet the precise requirements of additional individual OEMs in India and beyond.

Over the course of the initial five years of the master supply contract, Saietta and AVTEC will have the capability to produce a minimum of 150,000 complete eDrive units for customers globally. 80,000 units are already reserved for the confirmed launch OEM in India.

Saietta VNA, a joint venture in India with Padmini VNA, will produce the electric motors and inverters in its Indian manufacturing plant and combine these with transmissions from AVTEC manufactured at its plant in India.

The eDrives are engineered specifically for the rapidly growing lightweight eMobility market in India which registered than 1 million vehicles last year (up 200 per cent. compared to 2021).[1] Designed in the UK, they will be made in India.

Tony Gott, Executive Chairman of Saietta, 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.

"Saietta's collaboration with AVTEC is significant for our strategy in India. Working in partnership with AVTEC, we will benefit from their transmission expertise whilst we focus on our core competencies of motor and inverter development to ensure that together we deliver high quality eDrive solutions to our customers in India and beyond."

Neeraj Jain, MD & CEO of AVTEC Limited, commented:

"We are delighted to join hands with Saietta to develop and supply end-to-end eDrive solutions to customers.

"This is a unique proposition that has been forged at an opportune time, as the EV space continues to grow exponentially facilitated by favourable government policies and incentives. We are evermore prepared to provide an exceptional product range and are confident to play a paramount role in this transition, creating a sustainable revolution of EV mobility in India.

"This partnership will undoubtedly bring positive results and help us mutually to expand our portfolio and tap into emerging trends in the EV industry."

-ENDS-

For any further enquiries, please contact:

 
 Saietta Group                                                  via FTI 
  Tony Gott, Executive Chairman 
  Wicher (Vic) Kist, Group Chief Executive 
  Officer 
  Steven Harrison, Group Chief Financial 
  Officer 
 Canaccord Genuity (Nomad and Broker)              Tel: [phone] 
  Henry Fitzgerald-O'Connor                                        8000 
  Patrick Dolaghan 
 FTI Consulting (Financial PR advisor)             Tel: [phone] 
  Ben Brewerton                                                    1000 
  Dhruv Soni                                  [e-mail] 
 

About Saietta

Listed on the London Stock Exchange's AIM, Saietta is a multi-national business which designs, engineers and manufactures complete electric drive (eDrive) solutions for use in lightweight vehicles including scooters, motorbikes, rickshaws and urban delivery vehicles.

Saietta's breakthrough electric motor technologies include proprietary AFT (Axial Flux Technology) and RFT (Radial Flux Technology) which can be combined with in-house power electronics, powertrain controls, mechanical axles, and transmissions.

Developing tailored electric powertrain solutions to deliver competitive advantage, Saietta's turnkey engineering services are designed to fast-track electric vehicle development from concept to start of production. For more information, visit https://www.saietta.com/

About AVTEC

AVTEC is one of the largest independent manufacturers of powertrain and precision-engineered products in India. It is a part of CK Birla Group - a leading global business house, with over 25,000 employees and a combined turnover of US $2.8 billion.

With years of experience in manufacturing, AVTEC delivers competency across the entire value chain of design & manufacture of engines; transmissions and high precision components for Automotive, Off-Highway, Defence, Agriculture and Railway industry, in areas of both proprietary products and contract manufacturing.

For more information, visit https://www.avtec.in/

[1] EVReporter.com, Electric Vehicles India 2022 Report

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March 20, 2023 03:00 ET (07:00 GMT)