Sona Comstar forms JV in China, signaling deeper industry ties
By : Krishna Mishra
India’s top auto components manufacturer, Sona BLW Precision Forgings Ltd (Sona Comstar), has signed a binding term sheet with China’s Jinnaite Machinery Co. (JNT) to establish a joint venture in Beijing. The agreement marks a key step in Sona Comstar’s expansion into the Chinese electric vehicle (EV) market.
Under the terms of the deal, the joint venture will focus on manufacturing and supplying driveline systems and components to automotive manufacturers in China and across global markets. In the first phase, Sona Comstar will invest USD 12 million, while JNT will contribute USD 8 million in assets and business operations to the JV. The new entity is expected to begin operations in the second half of the current financial year.
This move reflects a broader trend of Indian companies exploring opportunities in rapidly growing Asian markets, including China. It’s seen as a strategic business alignment that could open doors for greater collaboration between the two nations’ industries.
The development also comes shortly after Indian External Affairs Minister S. Jaishankar’s visit to China for the Shanghai Cooperation Organisation (SCO) Foreign Ministers’ meeting. During his visit, Jaishankar met with his Chinese counterpart, CPC Politburo member and Foreign Minister Wang Yi, on July 14, 2025, further signaling a possible thaw in economic ties.