Sona Comstar to form $20 mn JV with China's JNT for driveline systems
Sona Comstar
) has signed a binding term sheet with
Jinnaite Machinery
(JNT) to set up a
joint venture
(JV) in China to manufacture
driveline systems
and components for electric and conventional vehicles.
Sona Comstar will invest $12 million in the first phase of the venture and hold a 60 per cent equity stake, while JNT will contribute $8 million in assets and business operations.
The JV is expected to commence operations in the second half of FY2026.
The move marks a strategic step in Sona Comstar's expansion into the Chinese
electric vehicle
(EV) market, which accounted for around two-thirds of global EV sales in 2024, the companies said in a joint statement Monday, citing third party research.
Chinese OEMs held 76 per cent of global EV sales last year and have increased exports from 1 million units in 2020 to over 6 million in 2024.
JNT, based in Gucheng County, operates a large-scale foundry and holds 63 patents. It serves customers in the automotive, railway and off-highway sectors in China and internationally.
The joint venture aims to leverage Sona Comstar's expertise in driveline systems and JNT's manufacturing capabilities and customer network in China.
The JV will supply driveline components to both EV and non-EV customers, and already has an order book.
The closing of the transaction is subject to the fulfilment of certain conditions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
33 minutes ago
- Economic Times
BYD runs India remotely as China tensions shut out top brass
Synopsis BYD faces hurdles in India due to strained political ties. Visa issues force executives to meet abroad. Despite this, BYD cars are popular. India rejects BYD's investment plan. This impacts tariff benefits. Tesla expands in India. BYD relies on its Chennai plant. High import duties increase car costs. India now allows Chinese tourist visas again. Reuters Representative image. China's BYD Co. is forging ahead with its attempts to expand in India despite roadblocks from the government that are preventing the electric vehicle maker from conducting key business dealings there. Like most Chinese companies, BYD has been unable to obtain visas for executives after a deadly clash between Indian and Chinese soldiers along a disputed Himalayan border in 2020 sparked a major deterioration in political ties. That's seen the EV giant resort to holding board meetings and high-level business interactions in Colombo in Sri Lanka and Kathmandu in Nepal, and even as far away as Singapore, according to people familiar with the Zhang, BYD's managing director for India, has been unable to obtain a work permit since he left the EV maker's local base in Chennai, despite government efforts to facilitate his travel, said the people, who asked not to be identified because they're not authorized to speak worked from the carmaker's headquarters in Shenzhen in 2021 before moving to Tokyo this year, they said. From Japan, he oversees Asian markets including India, the people said. Also Read: Chinese carmaker BYD launches smartphone-car connectivity feature An on-the-ground presence is particularly important for manufacturers, given the need for quick decision making, addressing productivity issues and establishing community cold shoulder is mutual. As recently as March, travel restrictions were still being wielded in the political spat. That month, an Indian contingent wanting to visit a major meeting of BYD car dealers in Shenzhen had to be scaled down after the majority of participants, including the company's employees based in India, were unable to obtain visas, a person familiar with the matter said. A representative for BYD in India declined to the operational difficulties, BYD has proved popular with Indian drivers — sales in the first half of this year are nearly touching the total units sold in 2024. Also Read: Tesla's long-awaited India debut bets on luxury vehicle buyers Indian officials have been clear they won't welcome investment from the carmaker — Commerce Minister Piyush Goyal said earlier this year that it's a 'no' to BYD due to caution around the nation's strategic has already rejected BYD's $1 billion plan to build a plant in partnership with a local company. This leaves the Chinese firm unable to qualify for reduced tariffs on imported EVs in exchange for establishing a substantial manufacturing presence in freeze contrasts with the experience of Tesla Inc. Its Chief Executive Officer Elon Musk met with India's Prime Minister Narendra Modi in the US earlier this year. The US carmaker opened its first showrooms in India this month, with deliveries set to begin as early as August. Tesla doesn't have plans to establish local manufacturing, meaning it faces import taxes of as much as 110% for fully-assembled overseas is critical for BYD, which risks missing its target to sell 5.5 million cars this year as demand in China stagnates and it draws the ire of Beijing following rounds of heavy price without the ability to invest in manufacturing in India, BYD relies on its assembly plant in the southern city of Chennai, which has annual capacity of 10,000 to 15,000 units, to meet Indian company also imports most cars it sells in India, but hefty duties — aimed at shielding domestic firms — effectively double the cost of a vehicle and India restricts volumes unless a model has received a local roadworthiness tensions between China and India are thawing, it's unclear whether curbs on professional visas will be lifted or if BYD will ever be welcomed with open arms. Still, there are tentative signs of progress. Earlier this month, India allowed Chinese nationals to apply for tourist visas again.
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
BYD runs India remotely as tensions with China shut out top brass
China's BYD Co. is forging ahead with its attempts to expand in India despite roadblocks from the government that are preventing the electric vehicle maker from conducting key business dealings there. Like most Chinese companies, BYD has been unable to obtain visas for executives after a deadly clash between Indian and Chinese soldiers along a Himalayan border in 2020 sparked a major deterioration in political ties. That's seen the EV giant resort to holding board meetings and high-level business interactions in Colombo in Sri Lanka and Kathmandu in Nepal, and even as far away as Singapore, according to people familiar with the matter. Ketsu Zhang, BYD's managing director for India, has been unable to obtain a work permit since he left the EV maker's local base in Chennai, despite government efforts to facilitate his travel, said the people, who asked not to be identified because they're not authorised to speak publicly. Zhang worked from the carmaker's headquarters in Shenzhen in 2021 before moving to Tokyo this year, they said. From Japan, he oversees Asian markets including India, the people said. An on-the-ground presence is particularly important for manufacturers, given the need for quick decision making, addressing productivity issues and establishing community ties. Cold Shoulder The cold shoulder is mutual. As recently as March, travel restrictions were still being wielded in the political spat. That month, an Indian contingent wanting to visit a major meeting of BYD car dealers in Shenzhen had to be scaled down after the majority of participants, including the company's employees based in India, were unable to obtain visas, a person familiar with the matter said. A representative for BYD in India declined to comment. Despite the operational difficulties, BYD has proved popular with Indian drivers — sales in the first half of this year are nearly touching the total units sold in 2024. Indian officials have been clear they won't welcome investment from the carmaker — Commerce Minister Piyush Goyal said earlier this year that it's a 'no' to BYD due to caution around the nation's strategic interests. India has already rejected BYD's $1 billion plan to build a plant in partnership with a local company. This leaves the Chinese firm unable to qualify for reduced tariffs on imported EVs in exchange for establishing a substantial manufacturing presence in India. The freeze contrasts with the experience of Tesla Inc. Its Chief Executive Officer Elon Musk met with India's Prime Minister Narendra Modi in the US earlier this year. The US carmaker opened its first showrooms in India this month, with deliveries set to begin as early as August. Tesla doesn't have plans to establish local manufacturing, meaning it faces import taxes of as much as 110 per cent for fully-assembled vehicles. Expanding overseas is critical for BYD, which risks missing its target to sell 5.5 million cars this year as demand in China stagnates and it draws the ire of Beijing following rounds of heavy price discounting. But without the ability to invest in manufacturing in India, BYD relies on its assembly plant in the southern city of Chennai, which has annual capacity of 10,000 to 15,000 units, to meet Indian demand. The company also imports most cars it sells in India, but hefty duties — aimed at shielding domestic firms — effectively double the cost of a vehicle and India restricts volumes unless a model has received a local roadworthiness certificate. While tensions between China and India are thawing, it's unclear whether curbs on professional visas will be lifted or if BYD will ever be welcomed with open arms. Still, there are tentative signs of progress. Earlier this month, India allowed Chinese nationals to apply for tourist visas again.
&w=3840&q=100)
First Post
an hour ago
- First Post
'Very close to China deal': Trump hopeful as trade negotiators meet in Stockholm
US President Donald Trump said his administration is very close to a trade deal with China as senior negotiators from both nations meet in Stockholm read more US President Donald Trump said that Washington, DC, is 'very close' to a trade deal with China, as senior negotiators from both nations meet in Stockholm on Monday. The talks aim to resolve longstanding economic disputes that are at the heart of the trade war between the world's two largest economies. The negotiations are being conducted at a time when China is facing an Aug 12 deadline to reach a durable tariff agreement with the Trump administration. It is pertinent to note that both nations reached a preliminary deal in June to end weeks of escalating tit-for-tat tariffs. STORY CONTINUES BELOW THIS AD Before meeting European Union Commission President Ursula Von der Leyen, Trump expressed optimism over the deal. 'We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes,' the president told reporters, providing no further details over the matter. What lies ahead The Stockholm talks are led by US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng and are coming right on the heels of Trump's biggest trade deal yet, with the EU accepting a 15 per cent tariff on its goods exports to the US and agreeing to make significant EU purchases of US energy and military equipment. Without an agreement between China and the US, global supply chains could face renewed turmoil of high duties that can go beyond the 100 per cent mark. Analysts believe that while the trade deal between Beijing and Washington, DC might not be as grand as the one Trump struck with the EU, another 90-day extension of a tariff and export control truce is more likely to be the outcome, Business Times reported. Interestingly, an extension of the deadline would prevent further escalation of the trade war between the two nations and would also create a space for a possible meeting between Trump and Chinese President Xi Jinping. There have been speculations that the two leaders can hold talks in late October. Trump-Xi meeting on the cards? In the past, Trump has said that he will decide soon whether to visit China in a landmark trip to address trade and security tensions. 'The Stockholm meeting is an opportunity to start laying the groundwork for a Trump visit to China,' Wendy Cutler, vice-president at the Asia Society Policy Institute, told Business Times. Meanwhile, Bessent has already maintained that he wants to work out an extension of the Aug 12 deadline to prevent tariffs snapping back to 145 per cent on the US side and 125 per cent on the Chinese side. Beijing, on the other hand, is likely to request a reduction of multi-layered US tariffs totalling 55 per cent on most goods and further easing of US high-tech export controls, experts said. STORY CONTINUES BELOW THIS AD China argued that these purchases would help reduce the US trade deficit with China, which reached US$295.5 billion in 2024. China is currently facing a 20 per cent tariff related to the US fentanyl crisis, a 10 per cent reciprocal tariff, and 25 per cent duties on most industrial goods imposed during Trump's first term.
