Sona Comstar, DENSO form EV powertrain JVs; Japanese firm buys 49% stake in 2W-3W business at ₹1,750 crore valuation

Sona BLW Precision Forgings Ltd (Sona Comstar) on Wednesday entered into a strategic partnership with Japan's DENSO Corporation to establish two joint ventures for developing, manufacturing and marketing electric and hybrid powertrain systems, as both companies deepen their play in the rapidly expanding electrified mobility segment.

The transaction includes DENSO acquiring a 49% stake in Sona Comstar's electric traction motor and controller business for two- and three-wheelers at an enterprise value of ₹1,750 crore, while Sona Comstar will retain a 51% stake and management control. Separately, the companies will establish another joint venture for four-wheeler and larger vehicle applications, in which DENSO will hold a 51% stake. The transaction is subject to regulatory approvals and customary closing conditions.

Calling the partnership a "historic milestone", Vivek Vikram Singh, Managing Director and Group CEO of Sona Comstar, said the alliance combines DENSO's global expertise in electrification with Sona Comstar's engineering and manufacturing capabilities. He said the collaboration would strengthen the company's electric powertrain business, expand its product portfolio and enable it to serve a wider customer base across vehicle segments.

Two JVs to strengthen electric mobility portfolio

The first joint venture will focus on high-voltage liquid-cooled traction inverters, traction motors and generators for electric and hybrid passenger vehicles, commercial vehicles and other high-voltage applications. The products will be jointly developed under a Joint Development Agreement before being manufactured in India through the new entity. Sona Comstar will contribute its engineering expertise, manufacturing capabilities and supply chain ecosystem, while DENSO will lead the venture with a majority stake.

The second joint venture will cater to the two- and three-wheeler market by manufacturing air-cooled traction inverters, traction motors, generators and e-Axles. Before the deal is completed, Sona Comstar will transfer its existing electric traction motor and controller business into a wholly owned subsidiary, following which DENSO will acquire a 49% stake. Both companies will also license their intellectual property and know-how to their respective majority-owned ventures in return for royalty payments.

Tsuneo Maebara, Head of Powertrain Systems Business Group at DENSO Corporation, said India is emerging as a key market for vehicle electrification across diverse mobility segments. He said the partnership would enable both companies to combine their technologies and business strengths to develop electrification solutions for customers in India while supporting DENSO's broader global growth strategy.

The companies said the joint ventures will be anchored in India to develop globally competitive, cost-efficient electric and hybrid powertrain systems, leveraging the country's growing role as a global automotive manufacturing and innovation hub.