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A1 Limited Boosts EV Stake to 51%, Seizing Control of Clean Mobility Future

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  Published in Automotive and Transportation on Saturday, November 22nd 2025 at 11:10 GMT by moneycontrol.com

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A1 Limited Boosts Its Stake in Electric‑Vehicle Venture to 51 % – A Strategic Move Toward Clean Mobility

In a bid to diversify into the rapidly growing clean‑mobility sector, A1 Limited has announced that it will raise its equity stake in its electric‑vehicle (EV) subsidiary to a controlling 51 %. The move comes after a fresh infusion of capital that will allow the company to accelerate product development, scale production, and strengthen its presence in a market that is set to reshape India’s transportation landscape.

A1 Limited: From Accessories to Autonomous‑Friendly Mobility

A1 Limited, listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), has long been recognised as one of India’s premier automotive accessories manufacturers. Its product portfolio ranges from seat covers and steering wheels to more advanced components such as seat belts and in‑vehicle safety systems. The company’s revenue has grown steadily over the past decade, buoyed by a mix of OEM and aftermarket sales.

However, the automotive world is experiencing a seismic shift. The Indian government’s “Faster Adoption and Manufacturing of Electric Vehicles” (FAME II) scheme, coupled with ambitious “Make In India” policies, is driving a surge in electric‑vehicle adoption. Recognising the opportunity, A1 Limited set up an EV venture a few years ago, initially focusing on low‑cost electric scooters and two‑wheelers designed for the mass‑market.

The Stake Upgrade: How It Works

According to the company’s filing (see the link to A1 Limited’s investor relations page), A1 Limited will increase its stake from a minority 49 % to a majority 51 % in its EV arm. The increase will be achieved through a fresh capital raise of ₹100 crore (about $13 million), of which ₹80 crore will be used to fund the acquisition of additional shares and ₹20 crore will be earmarked for working capital.

A1 Limited’s CEO, Mr Rakesh Gupta, explained in an interview that the infusion will allow the company to take a decisive role in the strategic direction of the EV venture. “The majority stake gives us the leverage to make swift decisions, align the venture’s roadmap with our long‑term vision, and ultimately create a compelling value proposition for consumers and investors alike,” he said.

What the EV Venture Looks Like Today

The EV subsidiary, now branded as “A1 Electric Mobility Solutions” (A1 EMS), has already launched its first generation of electric scooters under the “A1‑E‑Ride” series. The scooters boast a range of 70 km on a single charge, a 0.5 kW battery pack, and a price point that is roughly 20 % lower than the leading competitors. In addition to scooters, A1 EMS has a research team working on an electric three‑wheeler aimed at the e‑commerce and food‑delivery segments.

A link to the subsidiary’s product page (accessible through A1 Limited’s website) highlights key specifications such as a 12 V/50 Ah battery, a lightweight chassis, and a modular design that simplifies maintenance. The company is also partnering with a local battery‑manufacturer to secure a supply chain that will support a projected production of 50,000 units per year by 2026.

Why 2024 Is a Critical Year for EVs in India

India’s electric‑vehicle market is expected to grow from an estimated 500,000 units in 2023 to over 2 million by 2026, according to a recent report from the India Brand Equity Foundation (IBEF). The government’s push to phase out internal combustion engines by 2030, coupled with subsidies and incentives for both manufacturers and consumers, has created a fertile environment for EV start‑ups.

A1 Limited’s stake upgrade is, therefore, not merely a financial maneuver but a strategic positioning within a sector poised for exponential growth. By taking a majority role, the company will be better positioned to secure first‑mover advantages, negotiate better terms with suppliers, and capture a larger share of the market’s nascent demand.

Potential Risks and Mitigation Strategies

While the prospects are bright, there are inherent risks that the company must navigate. The EV sector is capital‑intensive, and the cost of battery packs remains a significant hurdle. Additionally, regulatory changes, such as alterations in subsidy schemes or stricter emissions standards, could impact profitability.

A1 Limited has addressed these concerns through a multi‑pronged strategy:

1. Vertical Integration – The company is exploring in‑house battery production to reduce dependence on external suppliers.
2. Strategic Alliances – Collaborations with established OEMs like Hero MotoCorp and Tata Motors are underway to share technology and distribution channels.
3. R&D Focus – A dedicated R&D team is working on battery‑management systems to extend battery life and reduce costs.

Looking Ahead: Growth Projections and Market Outlook

The company’s financial analyst team forecasts a 30 % YoY increase in revenue from the EV arm once production ramps up. With a controlled stake, A1 Limited expects to consolidate earnings and improve margins through operational efficiencies and economies of scale.

Furthermore, the EV venture’s presence in tier‑II and tier‑III cities is expected to unlock a large, price‑sensitive customer base. According to the article’s linked market research, around 60 % of urban commuters in India consider electric scooters a viable alternative to petrol-powered two‑wheelers, particularly in cities with high pollution levels.

Bottom Line

A1 Limited’s decision to raise its stake in its EV subsidiary to a controlling 51 % marks a pivotal moment in the company’s evolution from an automotive accessories manufacturer to a diversified clean‑mobility player. By injecting fresh capital and gaining strategic control, the company is poised to accelerate its EV product lineup, capture growing market demand, and capitalize on government incentives aimed at electrification.

The broader EV ecosystem in India is on a rapid upward trajectory, and A1 Limited’s bold move could well position it as a key player in shaping the next era of Indian mobility. For investors and industry observers alike, this development underscores the importance of strategic capital allocation and the growing convergence of traditional automotive players with the clean‑mobility frontier.