MT Autocraft will infuse INR 160 crore for its foray into the electric vehicle components vertical. The company has seeded a startup, MTA E-Mobility (MTA EV), to focus on EVs.
Of this outlay, INR 100 crore will go into setting up the components facility in Palwal, Haryana, while INR 60 crore will be used for tooling and plant machines in the first 12 to 24 months.
Anil Sehgal, Group Chairman, MTA, told Mobility Outlook that EV components will be the need of the hour going forward and help the group expand into new horizons. “Our Palwal facility is located at a strategic point. We can cater to the demand of a lot of electric two- and three-wheeler OEMs from there,” he added.
MTA EV has already signed its first order of manufacturing and indigenising multi-speed automatic EV powertrains for 2/3Ws as well as a collaboration agreement for the same with Korea-based EMTC. Two of the group's manufacturing facilities are located in Rohtak while five are spread across Parwanoo and Barotiwala. Once set up, MTA EV will be its eighth auto components manufacturing facility.
Vivek Jakhmola On Board As Co-founder
The more significant news pertains to Vivek Jakhmola (Former President of JBM Group, and Former Director of Lumax) spearheading the company as a co-founder, along with Karan Sehgal, CEO, MT Autocraft, and Co-founder, MTA EV.
Jakhmola has already been at the forefront of such collaborations even while working with auto components companies in the past. “We will venture into other EV components but right now the focus is on EV powertrains for 2 & 3Ws,” he said.
The company will make four types of transmissions in India. As a buyback arrangement, the JV will service export orders of EMTC (without China) for the Korean and Philippines markets. “We have committed to manufacturing 100,000 transmissions in India during the next 18 months. Our target is to set up a facility that can manufacture around 500,000 transmissions per year,” explained Jakhmola.
In the process, the company will outsource manufacturing of up to 40% of non-essential components required in powertrains and focus on developing and indigenising critical ones in-house.
Also on the cards is a contract to supply 30,000 bikes (as completely knocked-down units) without batteries in FY24. These will be assembled at two lines to be put up at the Palwal facility.
First Foray Into 2W Space
Beyond being the group's first venture into the EV space, it also marks its debut in developing components for the electric 2W industry. Thus far, its clients include Maruti Suzuki, Mahindra & Mahindra, Toyota, Sonalika, TAFE, etc.
According to top sources, Jaipur-based Hop Electric and Pune-headquartered BGauss might be the first electric two-wheeler companies to collaborate with the company. “We have two RFQs from two large E2W makers in India, and are in discussions with nine more OEMs,” Jakhmola said.
The company also plans to launch its own branded electric two-wheelers in India. “We intend to introduce the electric motorcycle we are making for EMTC in the performance segment (above 350 cc),” he added.
The group posted revenues of INR 270 crore in FY21, INR 340 crore in FY22, and its order books suggest revenue figures of over INR 510 crore for FY23 (INR 310 crore from the auto sector).
According to Mordor Intelligence, the electric vehicle parts and components market was valued at $122.53 billion in 2021 and expected to reach $318.47 billion by 2027, a CAGR of over 21.05% during the forecast period (2022-2027).