Subros shares moved over 6% higher after the company disclosed a new business award valued at around ₹1,280 crore from Maruti Suzuki India Limited. The order pertains to the supply of locally manufactured electric compressors for Maruti Suzuki’s electric vehicle and hybrid vehicle programmes.
The supplies are expected to be spread across multiple models and executed over an estimated period of nearly seven years, starting from the respective start of production of each model. The order will be carried out under the existing Basic Purchase Agreement with Maruti Suzuki and has been classified as a domestic contract.
The confirmation of the business award has been received through Suzuki Motor Corporation, reflecting the existing business relationship between Subros and the Suzuki group.
Electric compressors are used in electric and hybrid vehicles for thermal management and cabin cooling. As part of this order, Subros will undertake localisation of electric compressors with technical support from DENSO Corporation and Toyota Industries Corporation. The localisation initiative is intended to support domestic manufacturing and reduce reliance on imports.
The order value of approximately ₹1,280 crore will be recognised over the lifecycle of the relevant EV and hybrid vehicle models during the execution period. Subros stated that the order does not involve any promoter or promoter group interest in the awarding entity.
Following the disclosure, Subros shares saw positive movement in the market, tracking investor reaction to the long-term supply agreement linked to electric and hybrid vehicle programmes.
