Shigan Quantum Technologies Limited, a prominent Indian leader in alternative fuel systems, recently announced that its wholly owned subsidiary, E Mobility Exim Pte. Ltd. (EMPL), has secured an exclusive technology assistance agreement with V&T Electric (Xinjiang) Co. Ltd., China. This strategic partnership grants EMPL exclusive rights to manufacture, test, calibrate, certify, and supply select electric vehicle (EV) products in India. The announcement marks a significant milestone in the localization and advancement of EV technology manufacturing in the country, setting a progressive roadmap toward full indigenous production and technological self-reliance.
Key Aspects of the Agreement and Its Strategic Importance
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Exclusive License and Technology Transfer: EMPL will benefit from an exclusive license to produce V&T’s electric vehicle controllers and auxiliary inverters in India. This agreement includes comprehensive access to V&T’s technology, proprietary know-how, technical designs, engineering support, assembly and testing protocols, and calibration methodologies. The exclusivity strengthens EMPL’s dominant market positioning in India’s fast-growing EV ecosystem.
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Phased Localization and Manufacturing Expansion: The collaboration is structured in a phased manner: Initially, V&T will supply sample products until the standard operating procedures (SOP) are established. Subsequently, the plan includes supply of Completely Knocked Down (CKD) kits, assembly, and testing conducted within India. Further stages will see the Surface Mount Technology (SMT) PCB assembly and product assembly transition fully into Indian facilities. Ultimately, the goal is 100% localization of both products and components sourced by Shigan Quantum, underpinning self-sufficiency and cost efficiency.
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Duration and Renewal of Agreement: The agreement secures manufacturing rights for a minimum term of 10 years or for the lifetime of the projects undertaken by customers—whichever is longer. There is an option for renewal for an additional five-year period upon mutual consent, ensuring sustained collaboration and product lifecycle support.
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Technical and Training Support: V&T Electric will provide continuous technical assistance, including expert deputations and training sessions for EMPL’s engineering and manufacturing teams. This facilitates cutting-edge product development and enhances compliance with evolving Indian and global EV standards.
Key Highlights and Expected Benefits for the Indian EV Market
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Localization of Advanced EV Technology
By leveraging V&T’s state-of-the-art technology and engineering expertise, Shigan Quantum through EMPL is positioned to lead the domestic EV components space with advanced electric motor controllers and inverters. This localization reduces dependency on imports, lowers costs, and aligns with India's vision for robust Make-in-India capabilities in the electric mobility sector.
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Support for Product Development, Certification, and Compliance
The partnership emphasizes product testing, certification, and continuous upgrades to meet stringent Indian and international standards. This will help build consumer trust and regulatory alignment critical for mass EV adoption in India.
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Strategic Exclusivity Providing Competitive Edge
The exclusive nature of this licensing deal strengthens EMPL’s market foothold, allowing it to be the sole provider of these V&T technologies in India for a significant period. This exclusivity is expected to translate to market share growth and enhanced business scalability.
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Economic and Employment Impact
Establishing full-fledged local manufacturing, including SMT and assembly lines, is anticipated to create numerous skilled jobs and spur the growth of ancillary industries. This also supports the broader goal of sustainable industrial development in India’s EV manufacturing sector.
Additional Details from the Official Disclosure
The agreement does not involve any shareholding relationships between the parties, affirming it as an arm’s length commercial transaction. In consideration of the license rights, EMPL will pay royalties to V&T based on the sale price of the licensed products on a quarterly basis. This financial structure incentivizes performance and ensures aligned interests.
The technology transfer and phased localization strategy signify a landmark in Indian EV manufacturing, aligning with government initiatives fostering sustainable mobility and domestic technological advancements.
This collaboration positions Shigan Quantum Technologies, through its subsidiary E Mobility Exim, at the forefront of India’s EV revolution by coupling advanced Chinese EV technology with robust Indian manufacturing capabilities. As localization and innovation efforts accelerate, this partnership is expected to drive significant growth and transformation in the Indian electric vehicle industry over the next decade.
Source: Official regulatory filing by Shigan Quantum Technologies Limited, Reuters newswire.
