Indian auto component firm Varroc Engineering and France-based battery tech firm Forsee Power are set to create a joint venture in India for battery-pack solutions for electric vehicles. Varroc Engineering will acquire 45 percent equity in Forsee Power India as part of the deal.
The proposed joint venture would initially focus on developing and supplying battery-pack solutions for electric three-wheelers. The firms also aim to expand their presence to electric two-wheelers, light commercial vehicles, buses, trucks, off-highway vehicles, and industrial applications.
The joint venture would combine the expertise of Varroc Engineering in auto components and Forsee Power in battery technologies and energy storage to develop battery-pack solutions suited for electric vehicles in India. The proposed partnership would initially target the electric three-wheeler segment as it continues to play a critical role in the Indian electric mobility market.
Besides, the proposed joint venture would also target other commercial and industrial segments, including electric two-wheelers, light commercial vehicles, buses, trucks, off-highway, and industrial applications. Developing battery-pack solutions for two-wheelers and three-wheelers would serve as an entry point for the firms to target other commercial and industrial segments.
India’s EV market is witnessing significant growth, spanning two-wheelers, three-wheelers, passenger cars, and commercial vehicles. There is a need for reliable battery technology and solutions in the country to support the EV market’s growth, considering the varied climatic conditions and different customer segments. A partnership between a domestic auto component supplier and a foreign battery tech firm could contribute to addressing local needs and supporting the local EV market.
Varroc Engineering’s proposed investment in Forsee Power India would enable it to diversify its presence in the EV market beyond auto components and target battery technologies. With the global auto industry undergoing a paradigm shift toward EVs, traditional auto component suppliers must evolve and adapt to the changing scenario. The partnership would also support India’s push toward self-reliance in critical areas, including EV technologies and components.
On the other hand, Forsee Power has the expertise and experience in battery systems and electrification solutions for diverse applications, from two-wheelers to off-highway vehicles. The partnership with Varroc Engineering would enable it to expand its footprint in the EV market and target India’s growing electric mobility market. The proposed joint venture would also support Forsee Power’s strategy of focusing on India as a growth market while partnering with a local auto component supplier to better understand the local requirements and needs. It would also contribute to meeting the demand for battery systems and solutions in India.
While targeting electric three-wheelers as the entry point, the proposed joint venture between Varroc Engineering and Forsee Power would provide the firms with an opportunity to diversify into other commercial and industrial segments. The initial focus on the three-wheeler segment would be in line with the segment’s significant role in the Indian EV market. It would also enable the firms to address the local market’s varied climatic conditions and diverse customer segments, ranging from commercial to personal use. The proposed partnership would position the firms to capture the growing demand for batteries in the Indian EV market, which is set to witness significant growth in the years to come.