Auto parts manufacturer Sona BLW Precision Forgings Ltd (Sona Comstar) announced a joint venture with Jinnaite Machinery Co Ltd (JNT) to tap into the Chinese electric vehicle (EV) market, with an investment totalling USD 12 million (approximately Rs 100 crore).
The company revealed that a binding term sheet had been signed with Jinnaite to form a new JV entity in China. Under the deal, Sona Comstar will contribute USD 12 million and hold a 60% stake, while JNT will bring in USD 8 million worth of assets and business in the first phase.
This new JV is set to commence operations in the second half of FY26, aiming to fulfill both EV and non-EV customer orders. It will focus on manufacturing and supplying driveline systems and components to automakers in China and other global markets. Sona Comstar is already a leading supplier of differential assemblies for battery electric vehicles (BEVs) in North America and holds a significant market share in Europe.
“The new manufacturing initiative in China aligns with our goal to expand across key Asian markets, especially in India, China, Japan, and South Korea, while also increasing our presence in North America and Europe,” the company said.
China remains the largest automotive market globally, particularly in the EV space, accounting for two-thirds of the world’s electric vehicle sales in 2024. Chinese automakers made up 76% of global EV sales last year, making it essential for any global EV supplier to establish a foothold in the region.
“This joint venture is a critical step in our strategy to grow within Asia’s fast-evolving markets. As the world’s largest EV market and a pioneer in EV technologies, China offers incredible opportunities for innovation and expansion,” said Vivek Vikram Singh, MD and Group CEO of Sona Comstar.
By combining the strengths of both companies, the JV is poised for robust growth and could become a key supplier of driveline solutions for EVs in the region, Singh added. “With a solid order book already in place, we are optimistic about the upcoming operational launch later this year.”
JNT is renowned for its high-quality foundry operations using patented technology to produce complex castings and moulds. It is also involved in shaping Chinese national standards, having contributed to five national standard developments.
The partnership combines Sona Comstar’s expertise in driveline system design, precision forging, and machining with JNT’s advanced casting and moulding capabilities. With JNT’s established customer base and knowledge of local regulations, this collaboration is well-positioned for sustained growth in the Chinese market.
Sona BLW is renowned for its expertise in producing differential assemblies, gears, axles, and e-mobility solutions, making it a crucial supplier in the global shift toward electrification. With a strong focus on innovation, sustainability, and advanced manufacturing technologies, Sona BLW continues to play a pivotal role in the global automotive supply chain, serving major OEMs and tier-1 suppliers worldwide.
