Engineering and technology supplier Bosch announced on March 18th that its board has approved the formation of a joint venture with Tata Autocomp Systems to manufacture e-axles and electric traction motors in India.

The venture will be incorporated as a private company, with both partners holding equal stakes of 50%, according to the official press release. The joint venture will manufacture, sell, and service e-axles and electric traction motors, with the potential to expand into additional product segments.

Bosch will lead engineering and development, while Tata Autocomp will oversee operations, including procurement and administration. The companies plan to sign the agreement on March 23rd, 2026. The board of the joint venture will comprise six directors, with Bosch and Tata Autocomp nominating three directors each.

Capital structure and key terms

The venture's proposed paid-up capital is up to Rs. 940 million (US$ 10.1 million), with both companies contributing equally based on funding requirements.

It will commence operations with an initial capital of Rs. 1 million, shared equally between the two partners.

The agreement includes a five-year lock-in period restricting share transfers, except to non-competing affiliates. Transfers to competitors after this period will require approval from the other shareholder.

Bosch stated that the investment will not qualify as a related party transaction at the time of subscription. The joint venture will be classified as an associate company following incorporation.