Sona Comstar and DENSO Partner on EV Powertrain JVs in India

GURUGRAM, India — Sona BLW Precision Forgings Limited (Sona Comstar) announced on July 22, 2026, that it has signed definitive agreements with Japan’s DENSO Corporation to establish two joint ventures in India[cite: 5]. The strategic partnership aims to develop, design, manufacture, and market advanced electric and hybrid powertrain systems across multiple vehicle segments.

The joint ventures will leverage India’s position as a global automotive manufacturing hub to create high-efficiency, cost-effective powertrain solutions for both domestic and international markets.

Transaction Structure and Segment Focus

The partnership is divided into two distinct entities tailored to specific vehicle classifications:

+-----------------------------------------------------------------------------------+
|                        JOINT VENTURE STRUCTURE OVERVIEW                           |
+--------------------------+-----------------------+--------------------------------+
| Target Vehicle Segment   | Equity Split          | Primary Product Focus          |
+--------------------------+-----------------------+--------------------------------+
| Four-Wheelers & Larger   | DENSO: 51% (Control)  | Liquid-cooled traction         |
| Applications             | Sona Comstar: 49%     | inverters, motors, generators  |
+--------------------------+-----------------------+--------------------------------+
| Two-Wheelers &           | Sona Comstar: 51%     | Air-cooled traction inverters, |
| Three-Wheelers           | DENSO: 49%            | motors, generators, e-Axles    |
+--------------------------+-----------------------+--------------------------------+

Data sourced from official regulatory disclosures filed with BSE Limited and National Stock Exchange of India Ltd.

Four-Wheeler and Commercial Vehicle Joint Venture

Under a Joint Development Agreement (JDA), the partners will focus on high-voltage liquid-cooled traction inverters, traction motors, and generators for passenger cars, commercial vehicles, and heavy applications. DENSO will hold a 51% equity stake and assume management control, while Sona Comstar will retain 49%.

Two-Wheeler and Three-Wheeler Joint Venture

Sona Comstar will transfer its existing electric traction motor and controller business for two- and three-wheelers into a wholly owned subsidiary via a slump sale[cite: 5]. DENSO or its affiliates will subsequently acquire a 49% equity stake in this entity at an enterprise value of ₹17,500 million (INR 17.5 billion). Sona Comstar will hold the remaining 51% stake and retain management control. This entity will produce air-cooled traction inverters, motors, generators, and e-Axles.

Both companies will license relevant intellectual property and technological know-how to their respective majority-owned ventures in exchange for royalty payments.

Official Sources Section

According to regulatory filings submitted to BSE Limited and the National Stock Exchange of India Ltd. by Pankaj Gupta, Senior Vice President (Legal), Company Secretary, and Compliance Officer at Sona BLW Precision Forgings Limited, the agreements remain subject to customary regulatory approvals and closing conditions.

Advisory teams for Sona Comstar included Deloitte India (Financial), Trilegal (Legal), and KPMG India (Diligence & Tax).

Executive Commentary

"This partnership marks an historic milestone in Sona Comstar's journey as a mobility technology company and reflects the capabilities we have built across advanced electric powertrain systems over the years. DENSO is a company we have immense respect for, as they have been at the forefront of automotive innovation globally for decades... 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."

— Vivek Vikram Singh, MD and Group CEO of Sona Comstar

"India, in particular, is an important region where diverse forms of mobility coexist and electrification is advancing at significant scale... 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."

— Tsuneo Maebara, Head of Powertrain Systems Business Group at DENSO Corporation.

Strategic Implications and Market Impact

The alliance integrates DENSO’s global R&D and electrification technologies with Sona Comstar’s localized manufacturing, supply chain ecosystem, and engineering presence in India.

• For Vehicle Manufacturers (OEMs): Access to localized, high-efficiency electric and hybrid powertrain systems that meet international safety and performance standards.

• For the Indian Automotive Sector: Boosts domestic manufacturing capabilities for critical EV components, aligning with national supply-chain localization goals.

• For Investors: Offers Sona Comstar a clear valuation benchmark for its two- and three-wheeler EV business unit (enterprise valuation of ₹17.5 billion) while expanding its product footprint into high-voltage passenger vehicle systems.

Key Facts at a Glance

• Partnership Announcement: Sona Comstar and DENSO Corporation signed definitive agreements for two electric mobility JVs on July 22, 2026.

• Valuation Baseline: DENSO acquires a 49% stake in Sona Comstar's light EV motor/controller subsidiary at an enterprise value of ₹17,500 million.

• Four-Wheeler Entity: DENSO holds 51% majority control for liquid-cooled high-voltage systems.

• Two/Three-Wheeler Entity: Sona Comstar retains 51% majority control for air-cooled systems and e-Axles.

• IP Licensing: Both parent companies will license technological IP to the joint ventures against royalty payments.

Frequently Asked Questions

What are the main products the new joint ventures will produce?

The joint ventures will design and manufacture air-cooled and liquid-cooled traction inverters, traction motors, generators, and e-Axles for two-wheelers, three-wheelers, passenger cars, and commercial vehicles.

What is the ownership breakdown of the two joint ventures?

For four-wheeler and larger applications, DENSO holds 51% and Sona Comstar holds 49%[cite: 5]. For two- and three-wheeler applications, Sona Comstar holds 51% and DENSO holds 49%.

Where will the manufacturing facilities be located?

The operational footprint will be anchored in India, utilizing Sona Comstar's established supply chain and manufacturing capabilities alongside DENSO's technology standards.

Source: Official regulatory press release filed by Sona BLW Precision Forgings Limited on BSE Limited and National Stock Exchange of India Ltd.