REG - Saietta Group PLC - Saietta VNA Secures Major eDrive Order

SaiettaAnnouncement

13/11/2023 07:00

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RNS Number : 1608T  Saietta Group PLC  13 November 2023

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 which forms part of UK law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR").

 

Monday 13 November 2023

Saietta Group Plc

("Saietta", the "Company" or the "Group")

 

Saietta VNA Secures Second Major eDrive Order From Mainstream Indian Client

Pictured: Saietta VNA's 33,000 sq-ft production facility in Delhi, India

Saietta Group plc (AIM: SED), the multi-national business which designs,
engineers and manufactures complete electric drivetrain (eDrive) solutions for
electric vehicles, announces that its 49.5% owned  Indian joint venture,
Saietta VNA, has received an order for complete eDrives from its lead Indian
client for a second of their light commercial vehicles.

The customer is a global OEM (Original Equipment Manufacturer) and one of the
largest producers of light commercial vehicles (LCVs) in the Indian market.
The purchase order is for approximately £106,000 of systems for the pilot
production over the next c3 months. Target volumes indicated by the client,
subject to further purchase orders, are expected to commence in Q2 2024
generating revenue for Saietta VNA of approximately £12.7 million in the
first year of production, with an expected minimum of 60,000 orders over a 5
year period.

The order is for Saietta's proprietary, all-new Radial Flux Technology (RFT)
motor, mated to a bespoke Saietta controller, transmission, axle and vehicle
control unit. This is the first significant order for the Company's new RFT
eDrive, validating the substantial commercial opportunity that this technology
represents for Saietta.

This is the second order Saietta VNA has received in quick succession from the
same Indian OEM. The first was announced on 27 September 2023 for an eDrive
consisting of Saietta's proprietary Axial Flux Technology (AFT) motor with an
integrated controller, transmission, axle and vehicle control unit. This means
that Saietta VNA now has two eDrive product lines commencing production with a
combined indication of minimum volumes of 100,000 units within the first 5
years of vehicle production.

Pictured: Production line at Saietta VNA's production facility in Delhi,
India

Both eDrive solutions have been designed and developed at Saietta's Global
Technical Centre in Silverstone, UK, and will be manufactured at Saietta VNA's
all-new 33,000 sq-ft production facility in Delhi, India, utilising a largely
local supply chain (see appendix for images of the Indian facility).
Production has already commenced for the AFT eDrive and the RFT eDrive system
is targeted to commence production in Q2 2024. Vehicles powered by Saietta's
AFT and RFT motors are expected to be on India's roads in the first half of
2024.

Further to the announcement on 19 October 2023, the Company is seeking funding
for working capital and to capitalise on the clear opportunity in the Indian
lightweight vehicle market, as further demonstrated by this contract win. The
Company is in advanced discussions with key stakeholders and will provide a
further update in due course as these conversations progress.

Tony Gott, Executive Chairman, Saietta Group plc, said:

"This is the second order secured by our Indian JV in quick succession from
the same mainstream Indian lightweight vehicle manufacturer which demonstrates
the success of our technical collaboration. We have solutions for two further
product lines for them also under development which we expect to mature into
orders in time. We believe this confirms market pull for our modular products
and services in this highly demanding, cost-competitive market.

 

The addition of the all-new second eDrive model line based around our
proprietary Radial Flux Technology (RFT) motor is a game-changer for Saietta
it opens up the huge Indian electric 2 wheel market which numbered nearly
900,000 registrations in the 12 months to end September 2023. Currently
electric 2 wheelers account for around 5% of all 2 wheel registrations in
India, so the potential for Saietta's RFT motors is very clear as this sector
rapidly transitions to electric propulsion.

 

The order announced today is for a RFT derivative which sits just below our
flagship AFT motor family in terms of performance and is for a lightweight 3
wheel vehicle. However, it's just the first derivative and we intend to bring
to market a modular family of RFT eDrive systems which will enable us to
provide solutions across the lightweight 2 and 3 wheel sector in India and
beyond and to secure the commercial opportunities which are clearly in front
of us right now."

Background on the Indian Market

Demand for eMobility solutions in India is rapidly increasing. It's
currently running at just over 1.5 million EV registrations for the 12 months
to end September 2023, compared to just over 1 million units for CY 2022,
which itself was up over 200% on CY 2021. Lightweight vehicles are the
dominant form of transport in India, accounting for over 94% of all EV
registrations for the 12 months to end September 2023. Saietta has engineered
a range of eDrive solutions in the UK specifically for the Indian lightweight
vehicle sector, to be made in India with a largely Indian supply chain and so
is well positioned to capitalise on the clear market trend.

 

-Ends-

 

For any further enquiries, please contact:

 

 Saietta Group                                via FTI

 Tony Gott, Executive Chair

 David Woolley, Chief Executive Officer

 Canaccord Genuity (Nomad and Broker)         Tel: +44 (0) 207 523 8000

 Henry Fitzgerald-O'Connor / Harry Pardoe

 FTI Consulting (Financial PR advisor)        Tel: +44 (0) 20 3727 1000

 Ben Brewerton / Dhruv Soni                   saietta@fticonsulting.com (mailto:saietta@fticonsulting.com)

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.

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