Bosch approves 50:50 JV with Tata Autocomp to manufacture EV parts
Bosch and Tata Autocomp Systems are joining forces. They will create a new company to build electric vehicle parts. This partnership focuses on e-axles and electric traction motors. The venture aims to strengthen India's growing electric vehicle m...
By ET Bureau |
Mumbai: The board of directors of Bosch approved a 50:50 joint venture with Tata Autocomp Systems to manufacture electric vehicle components, as the two companies step up focus on India's rapidly evolving EV ecosystem, the company said in a stock exchange notification.
The proposed joint venture will manufacture, sell and service e-axles and electric traction motors-key components that power electric vehicles. The entity will be incorporated in India as a private limited company, subject to regulatory approvals and customary conditions. The move comes as automakers and suppliers increasingly localise EV supply chains to reduce costs and improve scalability amid rising adoption of electric mobility across passenger and commercial segments.
Under the agreement, both companies will hold equal equity in the venture and nominate three directors each to a six-member board, ensuring shared governance and oversight. A five-year lock-in period has been agreed, restricting any transfer of shares during the initial phase, except under specified conditions such as transfers to non-competing affiliates.
The joint venture is expected to begin with an initial paid-up capital of ₹10 lakh, with provisions to scale up to as much as ₹94 crore depending on funding requirements and business expansion plans.
As part of the partnership, Bosch will lead engineering and product development, leveraging its global expertise in electrification technologies. Tata Autocomp will be responsible for operations, procurement and administrative functions, drawing on its strong domestic manufacturing and supply chain capabilities.
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The companies said the transaction does not fall under related party norms at the outset, though the joint venture will be classified as an associate entity post capital subscription.
The definitive joint venture agreement is expected to be executed on March 23, following which the companies will initiate incorporation and subsequent disclosures in line with regulatory requirements.
