Sona Comstar Enters China EV Market with Joint Venture for Driveline Systems
#China #Investment #EV #SonaComstar“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.” - Vivek Vikram Singh, MD & Group CEO, Sona Comstar
July 2025 : Sona BLW Precision Forgings Ltd. (Sona Comstar) has recently signed a binding term sheet with Jinnaite Machinery Co., Ltd (JNT) to establish a joint venture (JV) company in China. This strategic move marks Sona Comstar's entry into the rapidly expanding Chinese EV market, with the JV set to manufacture and supply driveline systems and components to automotive OEMs in China and globally.
In the initial phase, Sona Comstar will invest $12 million, while JNT will contribute $8 million in assets and business to the joint venture. The JV is expected to commence operations in the second half of the current financial year.
Sona Comstar, already a leading global supplier of driveline solutions and the largest supplier of differential assemblies for Battery Electric Vehicles (BEVs) in North America, is strategically expanding its presence in faster-growing Asian markets, including China, India, Japan, and South Korea, while also aiming to increase market share in North America and Europe.
China's automotive market, particularly for electric vehicles, is the world's largest, with 11 million EV sales in 2024, accounting for two-thirds of global EV sales. This growth, driven by advancements in battery and software technologies, progressive government policies, and substantial investments in EV infrastructure, makes China a crucial market for any aspiring global EV supplier.
Jinnaite Machinery Co., Ltd. (JNT) operates a world-class foundry with patented technology for complex castings and molds, holding 63 patents and 36 proprietary technologies. JNT’s strong customer base includes leading Chinese, North American, European, and Japanese automotive OEMs.
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 molding. This collaboration, along with JNT's established local relationships, positions the JV for strong growth.
Mr. Vivek Vikram Singh, MD & Group CEO, Sona Comstar, commented: “I am excited to partner with JNT to establish a driveline manufacturing plant in China. 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. 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. With a robust order book already in place, we expect operations to commence later this year.”
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