Automotive Axles Limited has signed a binding Memorandum of Understanding (MoU) with Meritor HVS (India) Limited (MHVSIL) to restructure their business operations. The decision, made during the company’s board meeting on March 20, 2025, follows shareholder rejection of material related-party transactions between the two entities, prompting a strategic shift to ensure uninterrupted supply to key customers.
Under this new arrangement, Automotive Axles will directly serve certain OEM customers who previously sourced products through Meritor. While product specifications, pricing, and service terms will remain unchanged, this realignment allows the company to strengthen its customer relationships and enhance operational efficiency.
“By taking direct control of these customer accounts, we can reinforce our commitment to service excellence while optimizing our business structure,” the company stated.
Additionally, Automotive Axles and MHVSIL will establish a services agreement, with MHVSIL continuing to provide support in areas such as marketing, business development, engineering, and product development. This collaboration ensures seamless operations despite the shift in customer management.
MHVSIL, part of the promoter group, holds no direct stake in Automotive Axles. However, since the transaction qualifies as a related-party agreement, it has been executed on an arm’s length basis in compliance with regulatory norms.
This realignment reflects Automotive Axles’ ongoing efforts to streamline its operations and sustain a stable, efficient service model. Further details regarding customer transitions and execution timelines will be disclosed in due course.