Sona BLW-Denso alliance to make EV and hybrid powertrain systems

Gurugram-based auto components maker Sona BLW Precision Forgings Ltd, also known as Sona Comstar, has partnered with Japanese auto parts supplier Denso to set up two joint ventures to manufacture electric and hybrid powertrain systems across multiple vehicle segments.

Sona Comstar and Denso have signed a Joint Development Agreement (JDA) to jointly develop high-efficiency liquid-cooled traction inverters, traction motors and generators for electric and hybrid passenger vehicles, commercial vehicles, and other high-voltage applications.

To commercialise the products, the two companies will establish a manufacturing joint venture in India. Denso will hold a 51% stake and have management control of the venture, while Sona Comstar will own the remaining 49%, contributing its engineering capabilities, manufacturing expertise and established supply chain ecosystem.

The companies will also set up a second joint venture focused on electric and hybrid two- and three-wheelers. As part of the arrangement, Sona Comstar will transfer its existing electric traction motor and controller business for two- and three-wheelers to its wholly owned subsidiary through a slump sale. Denso, directly or through its affiliates, will then acquire a 49% stake in the entity at an enterprise value of ₹1,750 crore, while Sona Comstar will retain a 51% stake and management control.

The joint venture will develop and manufacture air-cooled traction inverters, traction motors, generators and e-axles for electric and hybrid two- and three-wheelers, with the partners aiming to accelerate product innovation and expand their customer base.

Both companies will license their respective intellectual property and know-how to their majority-owned joint ventures in return for royalty payments.

“This partnership will also accelerate the growth of our existing electric powertrain business for two and three-wheelers by strengthening our capabilities across the powertrain value chain and enabling us to serve a broader set of customers,” said Vivek Vikram Singh, MD and Group CEO of Sona Comstar.

This comes at a time when the global shift towards vehicle electrification is driving demand for electric and hybrid powertrain systems, including in India. The proposed joint ventures will leverage India's growing role as a global automotive manufacturing and innovation hub to develop powertrain solutions that meet global quality and performance standards.

“Through this partnership, we will bring together the respective strengths that both companies have built over the years to provide electrification solutions that address the diverse needs of customers in India. By harnessing new competitive strengths created through synergies across the two companies’ products, technologies and business foundations, Denso will further advance and accelerate its electrification business,” said Tsuneo Maebara, Head of Powertrain Systems Business Group at DENSO Corporation.