Indian mobility technology company Sona Comstar has signed definitive agreements with Japan’s Denso to establish two joint ventures in India focused on electric and hybrid powertrain systems.
The partnership will cover the development, design, manufacture and marketing of products across multiple vehicle segments.
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One JV will focus on high-voltage liquid-cooled traction inverters, traction motors and generators for electric and hybrid four-wheelers and larger vehicle applications.
The second JV will focus on air-cooled traction inverters, traction motors and generators, as well as e-Axles for electric and hybrid two- and three-wheelers.
For the four-wheeler and larger vehicle JV, Sona Comstar and Denso have also signed a joint development agreement covering “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 these products, the companies will establish a manufacturing JV in India in which Denso will hold a 51% stake and management control, while Sona Comstar will own the remaining 49%.
Sona Comstar managing director and group CEO Vivek Vikram Singh said: “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.”
For the two-wheeler and three-wheeler JV, Sona Comstar will transfer its existing electric traction motor and controller business for that segment into its wholly owned subsidiary through a slump sale.
Following that transfer, Denso, directly or through its affiliates, will acquire a 49% stake in the entity at an enterprise value of Rs17.50bn ($181.2m). Sona Comstar will retain 51% ownership and management control.
That JV will manufacture and market air-cooled traction inverters, traction motors and generators, along with e-Axles for electric and hybrid two- and three-wheelers.
Both companies will license intellectual property and know-how to their respective majority-owned JVs in exchange for royalty payments.
The transaction remains subject to relevant regulatory approvals and customary closing conditions agreed by the parties.
According to the companies, the JVs will be anchored in India and will aim to develop products that meet global standards of quality and performance, as demand rises for electric and hybrid powertrain systems across vehicle segments.
Denso powertrain systems business group head Tsuneo Maebara added: “The electrification of mobility represents a major transformation that will continue to evolve in response to the diverse needs of customers and society across the world.
“India, in particular, is an important region where diverse forms of mobility coexist and electrification is advancing at significant scale.”
Separately, in March this year, Denso announced that it had invested in Next Core Technologies (NCT) with the aim of jointly developing in the field of motor cores.
