China's Broad-Ocean Motor, Tata Group to Tap Indian NEV Subsidies
Tang Shihua
DATE:  Jan 23 2020
/ SOURCE:  yicai
China's Broad-Ocean Motor, Tata Group to Tap Indian NEV Subsidies China's Broad-Ocean Motor, Tata Group to Tap Indian NEV Subsidies

(Yicai Global) Jan. 23 -- Chinese motor maker Zhongshan Broad-Ocean Motor has penned an agreement with Indian auto parts manufacturer Tata AutoComp Systems in order to exploit new-energy vehicle subsidies in the Asian subcontinent.

Tata AutoComp, a unit under conglomerate Tata Group, will invest INR110 million (USD1.5 million) in Broad-Ocean's subsidiary Prestolite Electric India, the Chinese firm said in a statement yesterday. That will give each backer a 50 percent share in the firm, which makes motors, control systems and other electric parts for NEVs and commercial vehicles.

Shares in Broad-Ocean [SHE:002249] opened 1 percent higher this morning but fell in tandem with the major stock benchmarks. Its share price was CNY3.87 (56 US cents), down 4.9 percent, as of 2.05 p.m.

India unveiled its NEV subsidy policy in April to expand the local electric car sector, the statement said, adding that by cooperating with a local industry titan it can leverage the pair's strengths to build a low-cost factory in the country.

Editor: James Boynton

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Keywords:   Business Partnership,Electric Vehicles,Tata AutoComp