Uno Minda announced on 1st December that its Board has approved the acquisition of German partner Buehler Motor's 49.9% stake in their joint venture, Uno Minda Buehler Motor (UMBM), thereby making it a wholly owned subsidiary of the company.

The Board has also approved the termination of the existing joint venture agreement with Buehler and cleared a further investment of up to Rs. 400 million (US$ 4.45 million) in its electric mobility components arm, UnoMinda EV Systems (UMEVS).

According to the regulatory filing, the stake purchase will be completed in the fourth quarter of FY26 for a cash consideration of Rs. 1.06 million.

UMBM, incorporated in December 2022, manufactures traction motors for battery-powered two-wheelers and three-wheelers based on electronically commutated DC motors.

Following the termination of the joint venture agreement, UMBM and Buehler will enter into an amended and restated technical licence agreement.

Uno Minda stated that the development is not expected to have any material impact on its business.

Separately, the Board approved a fresh equity infusion of up to Rs. 400 million in UMEVS - its wholly owned subsidiary - to support working capital requirements.

The EV systems division, which supplies components for electric two-wheelers and three-wheelers, reported revenue of Rs. 3.81 billion in FY25, compared with Rs. 1.86 billion in FY24.

Uno Minda noted that the planned investment will be executed in one or more tranches by the first quarter of FY27.