Latest news with #SonaComstar
Business Standard
a day ago
- Automotive
- Business Standard
Sona BLW gains as it enters China through JV with Jinnaite Machinery
Sona BLW Precision Forgings climbed 1.89% to Rs 488.80 after the company announced a joint venture with China's Jinnaite Machinery Co., Ltd (JNT), marking its foray into the world's largest auto market. The two firms signed a binding term sheet to set up a joint venture (JV) that will manufacture and supply driveline systems and components for automotive OEMs in China and across global markets. Sona Comstar will invest $12 million and hold a 60% stake, while JNT will contribute $8 million in assets and business in the first phase. Operations are expected to kick off in the second half of the current financial year, targeting both EV and internal combustion engine customers. The move is part of Sona Comstars broader strategy to deepen its footprint in fast-growing Asian markets. China, which sold 11 million EVs in 2024, now accounts for two-thirds of global EV sales. Chinese OEMs dominate the space, capturing 76% of global EV market share, and boosting their exports from 1 million units in 2020 to over 6 million in 2024. JNT runs a foundry with patented technologies, boasting 63 patents and 36 proprietary innovations, making it a key player in precision casting and mold-making. It has a strong customer base in the automotive, off-highway, and railway sectors. It supplies to the leading Chinese automotive OEMs, as well as North American, European, and Japanese OEMs. Vivek Vikram Singh, MD & Group CEO of Sona Comstar, said: "I am excited to partner with JNT to establish a driveline manufacturing plant in China. This joint venture marks a significant step in our strategy to expand into the rapidly growing Asian markets. As the largest electric vehicle market in the world and a leader in EV technologies, China offers tremendous opportunities for innovation and growth. By leveraging the strengths of both partners, this venture is well-positioned for strong growth, and it has the potential to become a key supplier of driveline solutions for electric vehicles in the region. With a robust order book already in place, we expect operations to commence later this year." Gurugram-based Sona BLW Precision Forgings primarily designs, manufactures, and supplies highly engineered, mission-critical automotive systems and components to automotive OEMs. It is a leading supplier to the fast-growing global Electric Vehicle (EV) market. Sona Comstar is the leading supplier of safety systems for railways in India. The company had reported 10.38% rise in consolidated net profit to Rs 164.12 crore on a 2.19% fall in revenue to Rs 864.75 crore in Q1 FY26 as compared with Q1 FY25.
Time of India
2 days ago
- Automotive
- Time of India
Sona Comstar to form $20 mn JV with China's JNT for driveline systems
Automotive components supplier Sona BLW Precision Forgings ( 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.
New Indian Express
2 days ago
- Automotive
- New Indian Express
Sona Comstar enters Chinese market through Jinnaite Machinery joint venture
NEW DELHI: Auto component major Sona Comstar has formed a joint venture with Jinnaite Machinery to enter the Chinese electric vehicle market with an investment of $12 million (about Rs 100 crore). Sona Comstar will invest $12 million and have a 60% stake, while JNT will contribute $8 million in assets and business to the joint venture in the first phase. The JV will commence operations in the second half of financial year 2026 to fulfil existing orders from EV and non-EV customers. Sona said that they will manufacture and supply driveline systems and components to automotive OEMs in China and globally. 'The JV will manufacture and supply driveline systems and components to automotive OEMs in China and globally. The Board has approved the binding Term Sheet, as mutually agreed between Sona Comstar and JNT. The JV is expected to commence operations in the second half of the current financial year,' said Comstar in an exchange filing on Sunday. Shares of Sona BLW Precision Forgings Ltd (Sona Comstar) surged as much as 3.48% to Rs 496.45 apiece on the NSE on Monday morning. Sona Comstar is the largest supplier of differential assemblies for battery electric vehicles) in North America and ranks among the top suppliers in Europe. Jinnaite Machinery operates a world-class foundry utilizing patented technology to manufacture complex castings and molds. JNT has strong customer base in the automotive, off-highway, aviation, railway, and marine sectors, including leading Chinese automotive OEMs, as well as North American, European, and Japanese OEMs. "As the largest electric vehicle market in the world and a leader in EV technologies, China offers tremendous opportunities for innovation and growth. By leveraging the strengths of both partners, this venture is well-positioned for strong growth, and it has the potential to become a key supplier of driveline solutions for electric vehicles in the region. With a robust order book already in place, we expect operations to commence later this year," said Vivek Vikram Singh, MD & Group CEO of Sona Comstar. China is the world's largest automotive market, especially for electric vehicles. In 2024, annual EV sales in China reached 11 million', accounting for two-thirds of global EV sales. Chinese OEMs dominate this market, accounting for 76% of global EV sales last year. Their share in international markets has also risen significantly, with exports increasing from 1 million in 2020 to over 6 million in 2024. Sona Comstar said that it is natural for any company with aspirations to be a global EV supplier to be part of the Chinese market and supply chain.
Business Upturn
2 days ago
- Automotive
- Business Upturn
Sona BLW shares rise over 3% as company signs joint venture deal in China
Shares of Sona BLW Precision Forgings Ltd (Sona Comstar) climbed over 3% to ₹495.50 in early trade today after the company announced a strategic joint venture agreement with Jinnaite Machinery Co (JNT) to expand its presence in China. According to an exchange filing, the stock gained as much as 2.14% from its previous close of ₹479.75 on the NSE. At the time of reporting, Sona BLW shares were trading at ₹490, within the day's range of ₹485.10 – ₹496.45. The company's market capitalization stood at ₹3.04 lakh crore. In the announcement, Sona BLW said it has signed a binding term sheet with Jinnaite Machinery to form a joint venture (JV) in China to manufacture and supply driveline systems and auto components, with a focus on the growing electric vehicle (EV) market. In the first phase of the JV, Sona Comstar plans to invest $12 million, while JNT will contribute $8 million worth of assets and business. 'As the largest electric vehicle market in the world and a leader in EV technologies, China offers tremendous opportunities for innovation and growth,' said Vivek Vikram Singh, MD & Group CEO, Sona Comstar. He added that the JV operations are expected to commence later this year and will cater to both EV and non-EV customers. Jinnaite operates a foundry with patented technology for complex castings and molds, and supplies components to Chinese auto OEMs as well as customers in North America, Europe, and Japan. The partnership is expected to leverage both companies' strengths to become a key supplier of driveline solutions for EVs in the region. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Time of India
2 days ago
- Automotive
- Time of India
Sona Comstar shares in focus after China EV JV worth $20 million
Shares of Sona BLW Precision Forgings ( Sona Comstar ) are likely to be in focus on Monday after the company signed a binding term sheet with China-based Jinnaite Machinery Co (JNT) to establish a joint venture (JV) for manufacturing driveline systems and components for electric vehicles. The JV will serve automotive manufacturers in China as well as global markets. Sona Comstar will invest $12 million, while JNT will contribute $8 million worth of assets and business in the first phase. Operations are expected to commence in the second half of the current financial year. Explore courses from Top Institutes in Select a Course Category Operations Management Management Digital Marketing Artificial Intelligence Healthcare Leadership PGDM Public Policy Data Science others Project Management MCA Data Analytics Finance MBA healthcare Design Thinking Degree CXO Product Management Cybersecurity Data Science Technology Others Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details In a stock exchange filing on Sunday, the company said the partnership marks a strategic step toward expanding its presence in key Asian markets, including China, India, Japan, and South Korea, while also aiming to grow in North America and Europe. 'China is the world's largest EV market, and it's only natural for any global EV supplier to participate in its supply chain,' Sona Comstar said. Also Read: Apollo Tyres, Brigade Enterprises among 10 small-cap stocks trading below industry PE; may rally up to 43% JNT, which operates a patented technology-based foundry, holds 63 patents and 36 proprietary technologies. It also plays a role in shaping Chinese national standards, having contributed to five such standards. Its customer base includes leading automotive OEMs from China, North America, Europe, and Japan. The JV will cater to both EV and non-EV automotive clients, with a strong order pipeline already in place. Vivek Vikram Singh, MD and Group CEO of Sona Comstar, said: 'As the largest electric vehicle market in the world and a leader in EV technologies, China offers tremendous opportunities for innovation and growth. By leveraging the strengths of both partners, this venture is well-positioned for strong growth and has the potential to become a key supplier of driveline solutions for electric vehicles in the region. With a robust order book already in place, we expect operations to commence later this year.' ( Disclaimer : Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
