Sona Comstar, JNT Form Joint Venture for EV Components Manufacturing in China

Gurugram, July 21, 2025 – Sona BLW Precision Forgings Limited (NSE: SONACOMS, BSE: 543300), a  mobility tech company, has announced a strategic foray into the Chinese electric vehicle (EV) market by signing a binding term sheet with Jinnaite Machinery Co., Ltd. (JNT) to form a joint venture (JV). The move aims to establish a manufacturing base for driveline systems and components within China’s rapidly growing EV ecosystem.

Key Deal Highlights

Strategic Rationale

• The joint venture will focus on manufacturing and supplying driveline systems for both electric vehicles (EVs) and internal combustion engine (non-EV) segments.
• China is a key market, accounting for nearly two-thirds of global EV sales in 2024, with approximately 11 million units sold.
• Given this scale, the country represents a significant opportunity for future growth.
• Sona Comstar is already the leading supplier of differential assemblies for battery electric vehicles (BEVs) in the North American market.
• The company now aims to expand its footprint across major Asian markets, including China, Japan, South Korea, and India.

“This joint venture marks a significant step in our strategy to expand into the rapidly growing Asian markets. China offers tremendous opportunities for innovation and growth. With a robust order book already in place, we expect operations to commence later this year,” said Vivek Vikram Singh, MD & Group CEO, Sona Comstar.

Partner Profile: Jinnaite Machinery Co., Ltd. (JNT)

JNT operates a state-of-the-art foundry in Gucheng County Economic Development Zone and holds 63 patents and 36 proprietary technologies. It is recognized as a Green Foundry Enterprise and a national-level “Little Giant” in advanced manufacturing. JNT supplies major OEMs in China, North America, Europe, and Japan, and plays an active role in shaping China’s national standards in manufacturing.

Market Context

China’s dominance in the EV sector stems from cutting-edge battery and software technologies, favorable government policies, and aggressive EV infrastructure expansion.

Strategic Outlook

With this JV, Sona Comstar is positioned to:

• Localize manufacturing in the world’s largest EV market.
• Leverage JNT’s foundry expertise and local customer relationships.
• Capitalize on robust demand from Chinese OEMs and global automakers with operations in China.

Sona BLW Precision Forgings Stock Performance

Sona BLW Precision Forgings shares are trading at ₹491.35, representing a 2.42% gain as of 10:54 AM IST on July 21, 2025. Sona BLW Precision Forgings shares have declined 30% over the last year, down 17% year-to-date, and increased 2.80% in the previous month.

Sona BLW Precision Forgings Ltd began trading at ₹485.10 and touched an intraday high of ₹496.45 before settling within the same range. The stock has shown stability in recent sessions, trading well above its 52-week low of ₹380.00, although it remains below its 52-week high of ₹768.65.

About Sona BLW Precision Forgings

Sona BLW Precision Forgings Ltd., founded in 1995, is a leading global supplier of critical automotive systems for electric and conventional vehicles. The company has facilities in India, the USA, Serbia, Mexico, and China, and is the largest supplier of differential assemblies for BEVs in North America. The company is headquartered in Gurugram, India. It is a listed entity on both NSE and BSE.

REF: https://nsearchives.nseindia.com/corporate/SONACOMS_20072025152715_Outcome.pdf

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