Latest news with #SonaComstar
Mint
12-05-2025
- Automotive
- Mint
Auto parts makers are battling EV to tariff threats. They may have found the next big thing
For auto component makers facing risks from the rise of electric vehicles and looming US tariffs, a new potential market is emerging: humanoid robots. Manufacturers of engine components and transmissions to brake assemblies can diversify into making parts for robots that look and function like humans. 'There are companies which have already started making humanoid robots," said Rohit Nanda, group chief financial Officer at Sona Comstar, which announced its foray into the segment on 30 April. 'About 50% of the bill of materials of such robots are products which we make for other applications like motors, drives, gears,etc." Also read | Man versus machine as China shows off humanoid robots in half-marathon The use of robots in scientific research to factories is expected to explode over the next decade. The Indian Space Research Organisation has developed a humanoid robot, Vyommitra, which will fly into space as part of the test launches for the Gaganyaan mission. Goldman Sachs expects theglobalmarket for humanoids to grow to $38 billion by 2035. China dominates The supply chain is dominated by Chinese players, who could be challenged, Nanda of Sona Comstar told Mint. 'We need to learn how to make these for a different use case. Our engineers will work with potential customers to develop these capabilities." The key to the growth of the humanoid robots market is making components cheaper, according to Jacqueline Du, head of China industrial technology research at Goldman Sachs. This is where the Indian auto component makers can help with large-scale production at lower costs. 'Players involved in the auto component manufacturing industry have perfected the cost model for the parts," said Prateek Jain, cofounder and chief operating officer at Addverb Technologies, a robotics company. 'They make many of the products, including gears and motors, which are critical in the production of robots." Also read | Man versus machine as China shows off humanoid robots in half-marathon According to Jain, a single humanoid can have 42-50 actuators or a complex system of parts that convert energy into physical motion. 'We need the precision, quality, scale and cost, which can be provided by auto parts players to develop the humanoid robot ecosystem in India." Sona Comstar estimates that 10 million humanoid robots are expected to be deployed by 2035. This story will unfold in the next 5-10 years, CFO Nanda said. 'This doesn't come in a big way into revenue in the next 2 to 3 years. Initial investments will be in the engineering team. Once we understand the opportunity, then we can invest in setting up a manufacturing facility." Mitigating global risks The bet on making parts for humanoid robots is part of a diversification effort by an industry prone to cyclical slowdowns because of its global exposure. In the year through March 2024, auto component players exported parts worth $21 billion, with nearly a third of it coming from the US. Donald Trump's tariff threat is a big concern for the sector. 'We identify three key risks for auto ancillary players—USMCA/tariffs, EU weakness and Chinese competition, and EVs – given the industry's export reliance on US/EU and good salience of engine components," analysts at Ambit Institutional Equities wrote in a 25 April note. Targeting robots as a new market is also seen as a prudent bet for auto parts makers because it's still nascent and scale is not expected anytime soon. Also read | Race to outrun humans: How humanoid robots are closing the gap The pursuit of leading auto component players to diversify into areas like electronics, robot part manufacturing, aerospace and defence will continue to intensify as these players will look to find new avenues of growth and expand margins, according to Jugnu Sakuja, managing director at consultancy firm Alvarez & Marsal. 'Such moves take time to materialise due to the need for technical capabilities, reliability and testing requirements as well as certifications." Jefferies analysts Nitij Mangal, Sagar Sahu and Kevin Verghese, in a 9 March note, said that rising electronics manufacturing in the country has opened doors for auto parts players to diversify. 'We believe more firms may expand into electronics, which may potentially lift growth outlook and multiples," they wrote.
Mint
30-04-2025
- Automotive
- Mint
Trump tariffs could cost Sona Comstar 3% of annual revenue, company says
Auto components maker Sona Comstar said on Wednesday that it can lose about 3% of its annual revenue due to business loss from the impact of Trump tariffs, becoming perhaps the first Indian company to quantify the loss from the sweeping import taxes levied by the US president. Vivek Vikram Singh, managing director and group chief executive officer of the Gurugram-based company, revealed the estimated loss from Trump tariffs in the January-March earnings call. 'There is risk of losing some business from tariffs, as customers might look to localise some parts. There is going to be impact on the overall demand as well, but there will be clarity on it in the coming months," Singh said during the call. Also read: Volkswagen layoffs: Europe's largest carmaker slashes headcount by 7,000; Net profit drops 40% in Q1 on US tariff s In the financial year ended 31 March, the company's revenue rose 12% to ₹ 3,555 crore. Of this, about two-fifths, or ₹ 1,422 crore, came from United States market. New profit grew 16% to ₹ 601 crore. Going by the company's estimate, the annual revenue loss would be about ₹ 106 crore. In January-March, revenue from operations declined 2% year-on-year to ₹ 868 crore, while net profit rose 10% to ₹ 164 crore. However, the company got an interim relief after president Donald Trump's administration said that American auto companies will get some credits to import parts for domestically-made vehicles. This interim measure was intended to give automakers a two-year timeframe to fully localize their value chain. 'Post the announcement, our position is pretty comfortable," Singh said during the call. Also read: US GDP drops to 0.3% in Q1; Donald Trump says 'NOTHING TO DO WITH TARIFFS. Be Patient' On 26 March, the US had announced that all automobile imports into country, including auto parts, will face a 25% tariff to encourage local production of vehicles. As a company with a high exposure to the US, Sona Comstar's business faced severe uncertainties from Trump tariffs. However, the company continues to put up a brave face. 'Our customers are not too worried about the impact. We will have to wait and see how the situation evolves," Singh said. 'In our business, the relative pricing is important. With China facing higher tariffs, it is a great opportunity for us to gain market share in the United States." Since the start of the year, Sona Comstar's share price has fallen by about 20% as against a 3.6% fall in Nifty Auto. On plans for a new facility in the US, the company said that it will wait for the dust to settle on the whole tariff issue before thinking of setting up a new plant there. Also read: Wall Street today: Nasdaq slumps 1.9%, S&P 500 tumbles 1.4% on recession fears after weak GDP data In April 2024, the company opened a new plant in Mexico to cater to demand in the North America region. To be sure, Mexico is so far is exempted from any additional tariffs from the United States. The North American market is an important destination for Indian component makers, who exported about one third of their total shipments of $21.2 billion in FY24 to the region.
Time of India
30-04-2025
- Automotive
- Time of India
Sona BLW Q4 net profit rises 10% to ₹164 crore despite revenue dip
Sona BLW Precision Forgings ( Sona Comstar ) has announced its financial results for the quarter and year ended March 31, 2025. The company reported its highest-ever quarterly net profit, despite a year-on-year decline in revenue for the fourth quarter. In Q4 FY25, the company recorded a net profit of ₹164 crore, reflecting a 10 per cent year-on-year (YoY) increase. Revenue for the quarter stood at ₹868 crore, marking a 2 per cent decline. On the other hand, EBITDA was ₹235 crore with a margin of 27.1 per cent, 5 per cent lower compared to the same quarter last year. Battery Electric Vehicle (BEV) revenue grew 8 per cent YoY to ₹294 crore and contributed 35 per cent of the total revenue for the quarter. For the full financial year, Sona Comstar posted a revenue of ₹3,555 crore, up 12 per cent YoY. Net profit for FY25 was ₹601 crore, up 16 per cent, while BEV revenue grew 38 per cent and accounted for 36 per cent of the company's total revenue. EBITDA for the year stood at ₹975 crore with a margin of 27.4 per cent. The company's net order book reached ₹242 crore as of 31 March 2025, with 77 per cent of this attributed to EV programmes. Sona Comstar added four new EV programmes and two new customers in FY25, taking its total to 58 programmes from 32 customers. Order wins and new product development During the quarter, Sona Comstar received an order from a North American electric vehicle manufacturer to supply rotor-embedded differential sub-assemblies and epicyclic geartrains for a new passenger vehicle. This programme added ₹152 crore to the order book and is expected to enter production in Q4 FY26. The company also launched a new product, the Steering Bevel Box, and secured an order from a global commercial vehicle OEM. This order is valued at ₹110 crore, with production expected to begin in Q3 FY26. Vivek Vikram Singh , MD and Group CEO, Sona Comstar, said, 'In 4Q FY25, we achieved our highest ever quarterly net profit, despite experiencing a revenue decline due to the transition to a new model for one of our large customers, which impacted our supplies last quarter. The production of the new model has been ramping up since March." "With substantial advancements in AI , 3D perception , and control technologies, coupled with decreasing compute costs, we expect rapid adoption of humanoid robots over the next decade. We are leveraging our core capabilities to develop components and sub-systems for these humanoid robots,' Singh further added.
Yahoo
27-03-2025
- Automotive
- Yahoo
JLR-parent Tata Motors, Tesla's Indian suppliers skid on US auto tariffs plan
(Reuters) -India's Tata Motors and the country's auto parts makers that supply Tesla, among others, dropped on Thursday after U.S. President Donald Trump announced plans for 25% tariffs on all imported cars and auto parts. Tata Motors slid 5%, while Tesla's biggest Indian supplier, Sona Comstar, dropped over 4%, leading to a 1.2% drop in the auto sector in the world's third-largest auto market. The 25% tariffs on cars and light trucks imported into the U.S. will start on April 2, while tariffs on auto parts will take effect from May 3. The news rocked the auto sector globally, with Tesla CEO Elon Musk saying the impact on the EV maker is "significant." The U.S. is a top destination for Tata Motors-owned Jaguar Land Rover's (JLR) luxury cars, which are imported from plants in the UK and Slovakia. Among other stocks, Samvardhana Motherson, India's biggest auto parts supplier, fell over 2%, while Bharat Forge, which also supplies Tesla, was down 0.4%. The U.S., Samvardhana's top market along with India, accounts for 20% of its total revenue. North America, led by the U.S., forms a steeper 40% of Sona Comstar's revenue. The day's decline also mirrors share moves of larger global carmakers, from Toyota and Hyundai, to Stellantis and Ford, all of which fell after Trump's announcement. Sign in to access your portfolio
