Auto components manufacturer Sona BLW Precision Forgings (Sona Comstar) has entered into a binding term sheet with Jinnaite Machinery Co. (JNT) to form a joint venture in China. This partnership aims to produce and supply driveline systems and components for automotive manufacturers both within China and internationally, Sona Comstar announced in a stock exchange filing on Sunday.
In the initial phase, Sona Comstar will invest USD 12 million, while JNT will contribute USD 8 million in assets and business to the joint venture. Operations are expected to begin in the second half of the current financial year, marking a key step in Sona Comstar’s plans to expand its footprint in China’s electric vehicle market.
According to the filing, “Sona Comstar, a leading global supplier of driveline solutions across various automotive segments, is strategically focusing on expanding its presence in rapidly growing Asian markets.”
The new manufacturing facility in China aligns with the company’s broader strategy to strengthen its position in Asian markets such as India, China, Japan, and South Korea, while also aiming to grow its market share in North America and Europe.
Sona Comstar noted the importance of the Chinese EV market, stating that any company with global ambitions in electric vehicles must be involved in China’s supply chain and market.
Jinnaite Machinery Co., Ltd. is known for its advanced foundry operations using patented technology to produce complex castings and molds. With 63 patents and 36 proprietary technologies, JNT plays an active role in shaping Chinese national standards, having contributed to five of them. The company serves a broad range of sectors including automotive, off-highway, and railways, and counts leading automotive OEMs from China, North America, Europe, and Japan among its clients.
The joint venture plans to start production in the latter half of this financial year to meet orders from both electric and traditional vehicle manufacturers.
Vivek Vikram Singh, Managing Director and Group CEO of Sona Comstar, commented, “China, as the world’s largest EV market and a pioneer in electric vehicle technology, presents enormous opportunities for innovation and growth. By combining the strengths of both partners, this venture is well-positioned for strong growth and can become a major supplier of driveline solutions for electric vehicles in the region. With a solid order book already in place, we anticipate beginning operations later this year.”
