Bharat Forge Ltd. is doubling down on its plans to build an electric vehicle supply chain business.
The auto-components maker invested £10 million in U.K.-based Tevva Motors Ltd. to acquire 35.26 percent stake, according to its exchange filing. Tevva makes engines for electric commercial vehicles, and the deal will help Bharat Forge service clients in India and overseas, Executive Director Amit Kalyani told BloombergQuint in an interview.
This (Tevva deal) gives us access to the European technology market. It also allows us to use our research and development facility in the U.K., our aluminium forging facility and other facilities in Europe and also to develop a supply chain strategy for the European EV market.Amit Kalyani, ED, Bharat Forge
Bharat Forge has already put in place a dedicated team for the EV business and acquired a 45 percent stake in an Indian startup focussed on electric two-wheelers. The investment in Tevva will be another step building out the EV supply chain business, he added.
We have a lot on our plate now. It will take a year or two to completely understand and build out the technology.Amit Kalyani, ED, Bharat Forge
Bharat Forge's products that help electric vehicles reduce weight will be "in production from the middle of next year", said Kalyani. "But electric powertrains production will probably start in 18 months or so."
Shares of Bharat Forge rose as much as 2.6 percent to Rs 669 apiece. The stock has dropped around 9 percent in 2018, in line with the 6 percent drop in the S&P BSE India Auto Index.
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