Sona Comstar Partners with DENSO Corporation to Establish Joint Ventures in EV and Hybrid Powertrain Systems

Sona Comstar Partners with DENSO Corporation to Establish Joint Ventures in EV and Hybrid Powertrain Systems​

Gurugram, India (July 22, 2026) - Sona BLW Precision Forgings Limited (Sona Comstar) has signed definitive agreements with DENSO Corporation, a global leader in automotive technology, to establish two strategic joint ventures. These collaborations aim to develop, design, manufacture, and market advanced electric and hybrid powertrain systems tailored for various vehicle segments across India.

The partnership brings together DENSO's extensive technology leadership in electrification, advanced product engineering, and R&D capabilities with Sona Comstar's proven manufacturing excellence, cost-competitive production, and deep understanding of the Indian automotive ecosystem. The combined vision is to revolutionize electric mobility by delivering world-class powertrains that set high benchmarks for performance, quality, reliability, and sustainability.

As the global automotive industry shifts towards electrification, both companies are leveraging India’s growing status as an innovation hub. The joint ventures, which will be anchored in India, are designed to develop products meeting stringent global standards of quality and performance.

Two Strategic Joint Ventures Defined​

The partnership involves two distinct strategic joint ventures, each focusing on different vehicle categories:

1. High-Voltage Systems: One venture will focus on developing high-efficiency liquid-cooled traction inverters, traction motors, and generators for electric and hybrid four-wheeler applications, including passenger and commercial vehicles.
2. Two/Three-Wheeler Systems: The second venture will concentrate on air-cooled traction inverters, traction motors, generators, and e-Axles specifically designed for electric and hybrid two-wheelers and three-wheelers.

Transaction Overview and Equity Structure​

The two joint ventures carry different structural elements:

Four-Wheeler and Larger Vehicle Applications​

For the JV targeting four-wheeler and larger commercial applications, Sona Comstar and DENSO have entered into a Joint Development Agreement (JDA). To commercialize these high-voltage products, the partners will establish a manufacturing joint venture in India. In this enterprise, DENSO will assume management control and hold a 51% equity stake, while Sona Comstar will hold the remaining 49%, contributing its engineering capabilities and established supply chain ecosystem.

Two-Wheeler and Three-Wheeler Applications​

For the dedicated JV serving two-wheeler and three-wheeler segments, Sona Comstar will transfer its existing electric traction motor and controller business for these vehicles into a wholly owned subsidiary through a slump sale. Subsequently, DENSO, directly or via its affiliates, will acquire 49% equity stake in that entity at an enterprise value of INR 17,500 million, with Sona Comstar retaining the balance 51% and maintaining management control.

Both joint ventures mandate mutual licensing of intellectual property and know-how between the respective majority owned companies upon payment of royalty. The entire transaction remains subject to customary closing conditions and receipt of relevant regulatory approvals.

The structure of the two planned collaborations is detailed below:

Leadership Commentary​

Mr. Vivek Vikram Singh, MD and Group CEO of Sona Comstar, commented on the strategic importance of the deal, stating: "This partnership marks an historic milestone in Sona Comstar's journey as a mobility technology company... DENSO is a company we have immense respect for. We are honored and delighted to partner with DENSO to bring together the complementary strengths of both companies and build advanced electric and hybrid powertrain solutions."

Mr. Tsuneo Maebara, Head of Powertrain Systems Business Group at DENSO Corporation, added: "The electrification of mobility represents a major transformation... Sona Comstar is a mobility technology company with a global business presence... 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."

SONACOMS Stock Price Movement​

Sona BLW Precision Forgings Limited slipped by 1.15% on Wednesday, ultimately closing at ₹726.5 as sentiment moderated after a volatile session. The stock had achieved its all-time high of ₹739.4 intraday before settling down, with total traded volume reaching 2.08 million shares.