Sona Comstar to form $20 mn JV with China's JNT for driveline systems
Sona Comstar
) has signed a binding term sheet with
Jinnaite Machinery
(JNT) to set up a
joint venture
(JV) in China to manufacture
driveline systems
and components for electric and conventional vehicles.
Sona Comstar will invest $12 million in the first phase of the venture and hold a 60 per cent equity stake, while JNT will contribute $8 million in assets and business operations.
The JV is expected to commence operations in the second half of FY2026.
The move marks a strategic step in Sona Comstar's expansion into the Chinese
electric vehicle
(EV) market, which accounted for around two-thirds of global EV sales in 2024, the companies said in a joint statement Monday, citing third party research.
Chinese OEMs held 76 per cent of global EV sales last year and have increased exports from 1 million units in 2020 to over 6 million in 2024.
JNT, based in Gucheng County, operates a large-scale foundry and holds 63 patents. It serves customers in the automotive, railway and off-highway sectors in China and internationally.
The joint venture aims to leverage Sona Comstar's expertise in driveline systems and JNT's manufacturing capabilities and customer network in China.
The JV will supply driveline components to both EV and non-EV customers, and already has an order book.
The closing of the transaction is subject to the fulfilment of certain conditions.
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