Gurugram-based auto components manufacturer Sona BLW Precision Forgings Ltd, widely known as Sona Comstar, has announced a strategic partnership with Japanese automotive parts supplier Denso. The two companies have signed agreements to establish two distinct joint ventures aimed at advancing the production of electric vehicle (EV) and hybrid powertrain systems across multiple vehicle segments.
High-Efficiency Systems for Diverse Vehicles
The first joint venture will focus on the development and manufacturing of high-efficiency liquid-cooled traction inverters, traction motors, and generators. These advanced components are intended for electric and hybrid passenger vehicles, commercial vehicles, and other high-voltage applications. To bring these products to market, a manufacturing facility will be established in India.
Under this arrangement, Denso will hold a 51% stake and assume management control of the venture. Sona Comstar will own the remaining 49%, contributing its significant engineering capabilities, manufacturing expertise, and established supply chain network.
Focus on Two and Three-Wheelers
A second joint venture will specifically target the rapidly growing electric and hybrid two- and three-wheeler market. As part of this structure, Sona Comstar will transfer its existing electric traction motor and controller business for two- and three-wheelers to a wholly-owned subsidiary. Denso, either directly or through its affiliates, will then acquire a 49% stake in this entity, valued at an enterprise value of ₹1,750 crore. Sona Comstar will retain a 51% stake and management control.
This venture is tasked with developing and manufacturing air-cooled traction inverters, traction motors, generators, and e-axles tailored for electric and hybrid two- and three-wheelers. The partners aim to accelerate product innovation and significantly expand their customer base in this segment.
“This partnership will also accelerate the growth of our existing electric powertrain business for two and three-wheelers by strengthening our capabilities across the powertrain value chain and enabling us to serve a broader set of customers,” stated Vivek Vikram Singh, MD and Group CEO of Sona Comstar.
Both companies will license their respective intellectual property and know-how to their majority-owned joint ventures, receiving royalty payments in return. This collaboration comes amidst a global push towards vehicle electrification, driving increased demand for sophisticated EV and hybrid powertrain systems, particularly in India.
Tsuneo Maebara, Head of Powertrain Systems Business Group at DENSO Corporation, commented, “Through this partnership, we will bring together the respective strengths that both companies have built over the years to provide electrification solutions that address the diverse needs of customers in India.”
The proposed joint ventures are poised to leverage India's increasing prominence as a global automotive manufacturing and innovation hub, developing powertrain solutions designed to meet stringent global quality and performance benchmarks.