Sona Comstar Ventures into Chinese EV Market with JNT Partnership

Sona BLW Precision Forgings, known as Sona Comstar, has formalized a partnership with Jinnaite Machinery Co. (JNT) to create a joint venture in China, aimed at producing driveline systems for the automotive industry. This collaboration will serve both local and international markets, according to the announcement through a stock exchange filing on Sunday.

The initial phase of the venture will see Sona Comstar investing USD 12 million, while JNT contributes USD 8 million in assets and operations. The joint venture is set to begin operations in the latter half of the current financial year, marking a pivotal expansion move for Sona Comstar into China's rapidly-growing electric vehicle segment.

Sona Comstar emphasized the strategic importance of establishing manufacturing operations in China as part of its broader goal to enhance its footprint across Asian markets, specifically in regions like India, China, Japan, and South Korea. The expansion also aims to boost its presence in North America and Europe.

Highlighting China's prominence in the EV market, Sona Comstar described the venture as a natural progression for any aspiring global EV supplier. Jinnaite Machinery's extensive portfolio, which includes 63 patents and 36 proprietary technologies, adds considerable value, with the company being a contributor to five Chinese national standards and having a strong customer base across various sectors.

This new endeavor, expected to begin fulfilling orders later this year, caters to both electric and traditional automotive demands. Vivek Vikram Singh, Sona Comstar's MD and Group CEO, stated the partnership positions them for substantial growth, leveraging the synergies of both companies to target the world's largest and most innovative EV market.