Siemens to Acquire Mass-Tech’s Electric Vehicle Division for ₹380 Million
The EV division will be integrated into Siemens’ electric-mobility business unit
May 24, 2023
Siemens, a German-based multinational conglomerate that is also involved in the transmission and generation of power, has signed an agreement to acquire the electric vehicle (EV) division of Mumbai-based Mass-Tech Controls at an estimated cost of ₹380 million (~$5 million).
Mass-Tech designs, engineers, and manufactures a wide range of AC chargers and 30-300 kW DC chargers for various applications in EVs.
Through the acquisition, Siemens aims to expand its market presence in India and enable the creation of an export hub.
The EV division of Mass-Tech will be integrated into the electric-mobility business unit of Siemens.
The products acquired through the acquisition are expected to help Siemens complete its portfolio of e-mobility solutions while catering to the Indian EV market, which has unique requirements such as lower power rating and parallel charging.
EV sales in India reached 349,676 units in the first quarter of 2023, a surge of 81% compared to 192,565 units sold in the same period last year.
EVs accounted for 6% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways.
Managing Director and CEO of Siemens Sunil Mathur said, “This acquisition will enable Siemens to address the rapidly growing Indian e-mobility market by complementing our global portfolio. The acquisition will help us to accelerate our growth plans in the e-mobility business segment and will expand our portfolio of sustainability solutions for our customers. We welcome colleagues from Mass-Tech Controls Private Limited into the Siemens family.”
Chairman and Managing Director of Mass-Tech Controls Subhash Patil commented, “Electric vehicle solutions from Mass-Tech Controls will perfectly complement and strengthen Siemens’ own existing portfolio of electric vehicle charging infrastructure solutions, helping provide higher value to customers.”
Siemens said the EV market is in the midst of a transformation, encouraged by the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) policy program and EV policies notified by various state governments.
The government recently slashed the subsidy for electric two-wheelers from ₹15,000 (~$181)/ kWh to ₹10,000 (~$121). The Ministry of Heavy Industries also said that the cap on incentives for electric two-wheelers has been reduced to 15% of the total cost from 40% under the FAME-II program.