Indian auto component maker Varroc Engineering said Friday it will sell its four-wheeler lighting system operations in the Americas and Europe to France's Compagnie Plastic Omnium for 600 million euros ($630.96 million).
Varroc's shares were trading up 20% at Rs 494/share.
The company, which will retain its 4-wheeler lighting operations in Asia, said it will continue to operate its China joint venture and its other businesses in countries such as Italy, Vietnam, Poland and Romania.
The divestment is part of its strategy to focus on the two-wheeler sector globally and electric vehicle product lines, according to the company.
Globally, auto companies and component makers have started diversifying their traditional business to focus more on electric vehicles.
India wants electric scooters and motorbikes to make up 80% of total two-wheeler sales by 2030, compared with about 2% now and Prime Minister Narendra Modi's administration is offering companies billions of dollars in incentives to make EVs and components locally.
The country is expected to see at least 5 launches in the 4-wheeler electric vehicle (EV) space this year including Tata's Altroz EV and Tiago EV, Maruti WagonR EV and Mahindra's eKUV 100. Ola is also expected to launch its electric vehicle in 2023-24 with a concept model already in place.