27 Sep 2023 07:01
Wednesday 27 September 2023
Saietta Group Plc
("Saietta", the "Company" or the "Group")
Saietta confirmed as eDrive supplier for a mainstream Indian light commercial vehicle
Saietta Group plc (AIM: SED), the multi-national business which designs, engineers and manufactures complete electric drivetrain (eDrive) solutions for electric vehicles, has today announced that its Indian joint venture, Saietta VNA, has received a purchase order for supply of complete eDrives from its lead OEM client.
The customer is a global OEM and one of the largest manufacturers of light commercial vehicles (LCVs) in the Indian market. The purchase order covers approximately £420,000 of systems for the first three months of production. However, target volumes indicated by the client for the first year of production is expected to generate revenue for Saietta VNA in excess of £11.2 million.
Saietta first announced the relationship with the client on 6 December 2022 and has since worked to bring the engineering of the eDrive to maturity. The eDrive consists of Saietta's proprietary Axial Flux Technology (AFT) motors with integrated controllers, transmissions, axles and vehicle control units.
Saietta believes this purchase order establishes Saietta VNA as the sole eDrive supplier for one of the client's LCV product lines and is expected to build to a minimum of 40,000 complete systems over a five-year period. An order for a second product line also powered by Saietta's AFT technology is expected over the coming months, and the two product lines are forecast to generate a minimum of 80,000 orders over a five-year period.
Designed and developed at Saietta's Global Technical Centre in Silverstone, UK, the eDrive will be manufactured at Saietta VNA's all-new 33,000 sq-ft production facility in Delhi, India, utilising a largely local supply chain.
Production will commence over the coming weeks and deliveries are on course to start before the end of this calendar year with the first customer vehicles powered by Saietta on India's roads in the first half of 2024.
Tony Gott, Executive Chairman of Saietta, said:
"Saietta has reached the point of inflection as we go into series production at our all-new production facility in Delhi, India. This purchase order received from a global manufacturer of one of the leading light commercial vehicles in India, validates the market pull for our modular products and services in this very demanding and cost-competitive market.
"Demand for lightweight eMobility solutions in India is rapidly increasing, with the EV market expanding by over 200 per cent in 2022, with more than one million new EVs registered. The Indian market - the largest producer of two- and three-wheel vehicles globally - is adopting and embracing electric drives in the push for cleaner, more sustainable mobility. We believe we are very well positioned to capitalise on this trend and fast-track vehicle manufacturers quickly and cost effectively to electric propulsion.
"The working capital funding facility within the joint venture, manufacturing plant and equipment, people and supply chain are all in place to commence production and we very much look forward to seeing the first customer vehicles powered by Saietta on the roads in India in the first half of 2024."
Ends
For any further enquiries, please contact:
Saietta Group Tony Gott, Executive Chair Steven Harrison, Chief Financial Officer | via FTI |
Canaccord Genuity (Nomad and Broker) Henry Fitzgerald-O'Connor / Harry Pardoe | 0207 523 8000 |
FTI Consulting (Financial PR advisor) Ben Brewerton / Dhruv Soni | Tel: +44 (0) 20 3727 1000 saietta@fticonsulting.com
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About Saietta Group plc
Listed on the London Stock Exchange's AIM, Saietta is a global business that designs, develops and manufactures complete electric drivetrain (eDrive) solutions for established manufacturers of a broad range of electric vehicles.
Saietta's breakthrough proprietary technologies include AFT (Axial Flux Technology) and RFT (Radial Flux Technology) motors, power electronics, powertrain controls, mechanical axles, transmissions and vehicle control units. Considerable flexibility is built into the core design, meaning solutions can be quickly and cost effectively tailored to a specific application.
Saietta works in a highly collaborative way with clients, driven by the belief that partnership is key to delivering world-class tailored solutions at pace. Saietta's engineering team takes time to deeply understand a client's brand, target market sector, competition and the services they require. Then Saietta develops a bespoke suite of products and services to fast-track the client to production with eDrive solutions which deliver a sustainable competitive advantage.