Sona Comstar establishes joint venture for electric vehicle components manufacturing in China
Automotive components maker Sona BLW Precision Legacy (Sona Comstar) has signed a binding glossary with Jinnaite Machinery Co (JNT) to establish a joint venture in China.
The joint venture will manufacture and supply drivetrain systems and components for automakers in Sunday’s filing.
Sona Comstar will invest $12 million, while JNT will donate $8 million to the joint venture in its first phase.
The joint venture is expected to begin operations in the second half of the fiscal year, marking an important milestone in Sona Comstar’s expansion to the Chinese electric vehicle market.
“Sona Comstar, the world’s leading Driveline solutions provider for a variety of automotive sectors, is strategically expanding its presence in the Asian market at a growing rate,” the exchange filing said.
It added that China’s manufacturing operations are in line with the company’s strategy to expand its operations in the Asian market, especially India, China, Japan and South Korea, while also working to further increase its market share in North America and Europe.
Sona Comstar refers to China’s large electric vehicle market, saying that this will come naturally for any company that aspires to become a global electric vehicle supplier and becomes part of the Chinese market and supply chain.
Jinnaite Machinery Co., Ltd. (JNT) operates a world-class foundry that uses patented technology to manufacture complex castings and molds. JNT has 63 patents and 36 proprietary technologies and is actively involved in the formulation of China’s national standards, which will help formulate five national standards.
It further markets its expertise and capabilities in the automotive, highway and railway sectors, including leading Chinese automotive OEMs, as well as the automotive industries in North America, Europe and Japan.
The joint venture is expected to begin operations in the second half of the current fiscal year to fulfill orders for EV and non-EV automotive customers.
Vivek Vikram Singh, MD and Group CEO, Sona Comstar, said: “As the world’s largest electric vehicle market and a leader in EV technology, China offers a huge opportunity for innovation and growth. By leveraging the strengths of both partners, this venture capital is good, can achieve strong orders and has an effort for Driv of Electrics of Electric of Electric of Electrics, which has made us an effort and therefore an effort to gain in electric companies. Operations are expected to begin later this year.”
