Acme construction is one of the new companies to enter the market in the country.
It is one that has been building the supply chain for the new national electric vehicle (NEDV) fleet since last year, with the aim of supplying the vehicle with parts for the upcoming fleet of the Chinese state-owned firm.
The two companies are part of the Acme Industrial Group, which has been a major player in the auto industry in India.
Acme was one of two firms to sign the memorandum of understanding with China Motor Motor Corp, the parent company of the Indian state-run China Automotive Industry Corporation.
The deal will see Acme supplying the parts for all NEDV vehicles.
“Acme has been supplying the supplier with the supply of the components for the Chinese NEDVs since 2015, and this agreement with Titan will help us meet the requirements of the vehicle,” a spokesperson for the company said.
“We are excited to work with Titan to help build the supply network for the NEDEV fleet in India,” the spokesperson said.
The move to expand into India comes amid increasing pressure on Indian manufacturers in the global market.
A record-breaking 6.4 million NEDVS were delivered by Chinese firms in 2017, and the country has experienced an increase in the number of NEDVDs sold globally from 9 million to nearly 13 million this year.
India, which imports more than 70 percent of its electricity from China, has been facing an electric vehicle shortage, particularly in the rural areas.
The government is also looking to build more power plants, including in rural areas to power rural households.
The government has said it wants to build 1,400 MW of power plants by 2022 to help solve the shortage.
The deal with Acne Construction Supply will see the two companies sourcing materials from suppliers in China for the construction of the vehicles, said a spokesperson from Acme.
The supplier will be supplying the material for the batteries for the vehicle, the spokesperson added.
“This is a very important step in the process of supplying our customers with the necessary components to build the vehicles for India,” he said.
Acne said that it is also seeking to sell its products in India through its online store.
The company is a supplier to the government of India and other private companies in the construction sector, according to its website.
AcME is a wholly owned subsidiary of Acme International Limited, which is listed on the Indian Stock Exchange.
The company is one among several Chinese companies which are working with AcME to expand its supply chain in India, including Shanghai’s Taishan Construction Group, the largest of China’s overseas construction firms.
Acmec is also part of Taishans group of firms which also have operations in India with construction companies in Jammu and Kashmir, Rajasthan, Gujarat and other states.
Acme is also working with Chinese companies to provide components for NEDv vehicles, including battery pack and battery assembly parts, as well as parts for their lithium-ion batteries, according the spokesperson.