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Eaton (ETN) Forms Alliance With KPIT to Boost eMobility Unit

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Eaton plc (ETN - Free Report) announced that it has formed a strategic alliance with KPIT, which has expertise in embedded software, accelerators and stacks, for further progress in electrified mobility technologies for the eMobility business unit.

Rationale Behind the Alliance

Demand for electric vehicles is rising at a steady pace for both light and heavy variant vehicles. Eaton has developed the eMobility business to utilize its power management expertise for capitalizing on the expanding emission less vehicle market.

The eMobility business of Eaton currently focuses on three primary areas for both automotive and commercial vehicle customers: intelligent power electronics, power systems, and advanced power distribution and circuit protection.

Notably, KPIT’s expertise in Automotive Open System Architecture (AUTOSAR) and V2G will enable Eaton to accelerate implementation of technologies for electric vehicles.
 
Eaton’s eMobility

eMobility is a comparatively new business operation of Eaton compared with other business units. Having said that, the company already has decades of experience in managing high-voltage power and developing commercial vehicle hybrid systems.

Eaton expects organic growth from the eMobility unit in the range of 5-6% in 2019. We expect that alliances like the one with KPIT will help Eaton to further expand operations relating to hybrid-electric and plug-in hybrid systems on the road in the United States, Europe, China and other Asia-Pacific markets.

In addition to making strategic alliances, Eaton continues to invest heavily in research and development activities to innovate new power solutions for electric vehicles. As a consequence, operating margin of this division decreased to 7.2% in the first six months of 2019 from 15.6% in the corresponding period of 2018.

Products of Different Varieties

Eaton supplies products of different varieties to customers in more than 175 countries. Due to diverse product offerings, the company effectively competes with the likes of General Electric Company (GE - Free Report) , Emerson Electric Co. (EMR - Free Report) and Rockwell Automation, Inc. (ROK - Free Report) , among others.

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