Get latest articles and stories on Latest News at LatestLY. Auto components Sona BLW Precision Forgings Ltd (Sona Comstar) on Sunday said it has formed a joint venture with Jinnaite Machinery to enter the Chinese electric vehicle market with an investment of USD 12 million (about Rs 100 crore).
New Delhi, Jul 20 (PTI) Auto components Sona BLW Precision Forgings Ltd (Sona Comstar) on Sunday said it has formed a joint venture with Jinnaite Machinery to enter the Chinese electric vehicle market with an investment of USD 12 million (about Rs 100 crore).
The company has signed a binding term sheet with Jinnaite Machinery Co Ltd (JNT) to establish a joint venture (JV) firm in China, Sona Comstar said in a statement.
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Sona Comstar will invest USD 12 million and have a 60 per cent stake, while JNT will contribute USD 8 million in assets and business to the joint venture in the first phase, it added.
The JV will start operations in H2 FY26 to fulfil existing orders from EV and non-EV customers, marking a significant milestone in Sona Comstar’s expansion into the Chinese EV market.
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It will manufacture and supply driveline systems and components to automotive OEMs in China and globally, the company said.
Sona Comstar is the largest supplier of differential assemblies for battery electric vehicles (BEVs) in North America and ranks among the top suppliers in Europe.
“The driveline manufacturing operations in China align with the company’s strategy to expand its presence in Asian markets, particularly in India, China, Japan, and South Korea, while also working to increase its market share further in North America and Europe,” the statement said.
China is the world’s largest automotive market, especially for electric vehicles. In 2024, annual EV sales in China reached 11 million, accounting for two-thirds of global EV sales, it added.
Stating that Chinese OEMs dominate the market, accounting for 76 per cent of global EV sales last year, Sona Comstar said it is natural for any company with aspirations to be a global EV supplier to be part of the Chinese market and supply chain.
“This joint venture marks a significant step in our strategy to expand into the rapidly growing Asian markets. As the largest electric vehicle market in the world and a leader in EV technologies, China offers tremendous opportunities for innovation and growth,” Sona Comstar MD and Group CEO Vivek Vikram Singh said.
By leveraging the strengths of both partners, this venture is well-positioned for strong growth, and it has the potential to become a key supplier of driveline solutions for electric vehicles in the region, he added.
“With a robust order book already in place, we expect operations to commence later this year,” Singh said.
JNT operates a world-class foundry utilising patented technology to manufacture complex castings and moulds, it added.
It is actively engaged in the formulation of Chinese national standards, having contributed to the development of five national standards.
“The joint venture leverages Sona Comstar’s expertise in driveline system design, precision forging, and precision machining, combined with JNT’s proficiency in casting and moulding,” the company said.
This collaboration, along with JNT’s established customer relationships in China, supplier connections, and understanding of local regulations, positions JV for strong growth over the medium term, it added.
