Sona BLW shares rise over 3% as company to enter Chinese EV market; here is all you need to know

The company has signed a binding term sheet with Jinnaite Machinery Co Ltd (JNT) to establish a joint venture (JV) firm in China, Sona Comstar said in a statement.

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, it added.

The JV will start operations in H2 FY26 to fulfil existing orders from EV and non-EV customers, marking a significant milestone in Sona Comstar's expansion into the Chinese EV market.

It will manufacture and supply driveline systems and components to automotive OEMs in China and globally, the company said.

Sona Comstar is the largest supplier of differential assemblies for battery electric vehicles (BEVs) in North America and ranks among the top suppliers in Europe.

"The driveline manufacturing operations in China align with the company's strategy to expand its presence in Asian markets, particularly in India, China, Japan, and South Korea, while also working to increase its market share further in North America and Europe," the statement said.

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, it added.

Stating that Chinese OEMs dominate the market, accounting for 76% of global EV sales last year, Sona Comstar said it is natural for any company with aspirations to be a global EV supplier to be part of the Chinese market and supply chain.

"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," Sona Comstar MD and Group CEO Vivek Vikram Singh said.

JNT operates a world-class foundry utilising patented technology to manufacture complex castings and moulds, it added.

It is actively engaged in the formulation of Chinese national standards, having contributed to the development of five national standards.

Sona BLW recent developments

On June 23, 2025, Sona BLW announced the appointment of Jeffrey Mark Overly as its Chairman. The board of directors, at its meeting held on June 23, 2025, appointed Overly, an independent director since February 12, 2021, as the Chairman of the company, Sona BLW Precision Forgings Ltd (Sona Comstar), said in a regulatory filing.

His appointment comes after the death of the company's Chairman, Sunjay Kapur, the previous week.

Last week, news reports suggested that the company was in advanced talks to supply electric vehicle components to Chinese EV giant BYD.

Sona BLW has been in talks with BYD for supplying EV components for the last few months, and both the companies are in an advanced stage, CNBC TV18 reported, citing sources aware of the development.