Sona BLW Precision Forgings Ltd. (Sona Comstar) is set to begin operations under its new joint venture in China by supplying differential housings and other driveline components, as part of a phased strategy to deepen its presence in the world’s largest electric vehicle (EV) market. The move is part of the company’s broader push into Asia and a key step in its long-term global expansion roadmap.
“We will not manufacture differential gears in China. That’s pretty certain,” said Vivek Vikram Singh, Managing Director and Group CEO of Sona Comstar. “What we’ll start off with is supplying differential housing and other parts from India. In the next phase, which is not yet part of the financial plan, we may export gears for final assembly there.”
The joint venture, with China-based Jinnaite Machinery Co., Ltd. (JNT), is a brownfield operation aimed at rapidly establishing a production footprint within the country’s mature automotive ecosystem. Sona Comstar will hold a controlling 60% stake and is investing ₹100 crore (USD 12 million), while JNT will contribute ₹66.7 crore (USD 8 million) in assets and business during the first phase. Operations are expected to begin in the second half of the current financial year.
Singh said the brownfield approach was intentional to prioritise agility, one of the company’s core values. “This route lets us move faster. A greenfield approach would have taken too long, and the Chinese supply chain, while extremely diverse, is complex to navigate without a local partner,” he said.
The partnership with JNT, which operates a patented, advanced foundry and supplies to top Chinese and global OEMs, is aligned with Sona Comstar’s “Look East and Look West” strategy. While the company has firmly established itself in Western markets–becoming the largest supplier of EV differential assemblies in North America–it sees a vast opportunity in Asia, which currently accounts for 60% of global automotive production.
“China accounted for two-thirds of global EV sales in 2024. It is absolutely essential for any serious global EV supplier to have a presence there,” Singh said. “We don’t yet include this JV in our order book, as it’s still under a term sheet. Once the binding agreements are signed and operations begin, we will start adding orders.”
As Sona Comstar ramps up its physical presence in China, it is also preparing to launch its next big technology product line–automotive sensors–through its European subsidiary, Novelic. The Serbia-based company, acquired in 2023 with a 54% equity stake for €40.5 million (₹355 crore), specializes in mmWave radar sensors, perception systems, and full-stack embedded solutions.
Sensor production is set to begin next year which will mark the company’s formal entry into the ADAS space. Sona Comstar has set up a new SMT line at the Chennai facility. The company’s first product rollout will be an in-cabin sensing solution, designed to be agnostic to powertrain type. “This particular program is for an EV customer, but the product itself is not EV-specific, it’s an interior system product,” Singh said.
According to the company, the global market for ADAS sensors is projected to grow to $43 billion by 2030, and Novelic positions Sona Comstar at the heart of this transformative shift in mobility.