Sona Blw Precision Forgings Limited has informed the Exchange regarding a press release dated July 20, 2025, titled "Press Release on Signing of term sheet with JNT for formation of JV in China".
SONACOMS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Sona Comstar has signed a binding term sheet with China's Jinnaite Machinery Co., Ltd (JNT) to form a joint venture that will manufacture and supply driveline systems and components to automotive OEMs in China and globally. Sona Comstar will invest $12 million and hold a 60% equity stake, while JNT will contribute $8 million in assets and business in the first phase. The JV is expected to start operations in H2 FY26 to serve both EV and non-EV customers, and the board has already approved the deal, though it remains subject to conditions precedent.
This is a strategic move to tap into China, the world's largest EV market (about two-thirds of global EV sales), giving Sona Comstar direct access to Chinese OEMs and global supply chains. The investment is modest ($12M for 60% stake), so financial risk is limited, but the long-term growth potential from entering the Chinese EV ecosystem could be material for future revenues.