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Business Standard
20 hours ago
- Automotive
- Business Standard
Sona Comstar plans domestic magnet production to cut China imports
Sona Comstar, India's biggest importer of rare earth magnets, plans to locally manufacture the critical components used in electric vehicles, tapping into a government push to incentivise their production at home as China restricts their exports. China, which produces around 90 per cent of the world's rare earth magnets, put restrictions in April on their exports as part of its response to US tariffs. While the US and China signed a deal this month to speed up approvals of rare earth exports, governments and companies globally are scrambling to look for alternatives. India, which has the world's third-largest car market and its fifth-largest reserves of rare earths, is working on a new program to incentivise magnet production locally to wean off China. Gurgaon-based Sona Comstar, officially known as Sona BLW Precision Forgings, is the first company in India to announce plans to make magnets domestically after the government's program became public. "Being the largest importer of rare earth magnets, we are the single largest affected party in the country. We have to look at India's self-sufficiency on magnets and are working with the government on it," Sona Comstar CEO Vivek Vikram Singh told Reuters in an interview. The company, which supplies gears and motors to car makers such as Tesla and Stellantis, imported 120 metric tonnes of magnets from China in the last financial year. Singh said the company will look at the Indian incentives once they are finalised, and other factors, to determine its investment in the local manufacturing. He said the company has the funds for local manufacturing, citing its five-fold increase in revenue to more than $400 million over the past five years. Any plans to mine and process rare earths would take years to develop, so will not provide an immediate solution to reducing reliance on China. Sona Comstar itself had plans to import 200 tonnes of magnets this year to meet the growing needs of its EV customers which make up about a third of its revenue, Singh said. The US currently accounts for about 40 per cent of Sona Comstar's revenue, ahead of India and Europe. With the recent acquisition of the Indian railways business of Escorts Kubota, the company has diversified beyond automotive and will see the majority of its revenues coming from India this year. For future growth, Sona Comstar is looking at acquiring more customers in China, Japan and South Korea. The plans for growth come amid the sudden death in June of Sona Comstar Chairman Sunjay Kapur, which sent the company's shares lower over fears over its future direction. The company appointed Jeffrey Mark Overly as its new chairman. Singh, however, said this will not change the company's course as it is run by a professional team of executives and has the kind of "management bench strength" needed to overcome crises and disruptions.
Mint
a day ago
- Automotive
- Mint
Sona Comstar goes local, set to produce rare earth magnets in India for EVs to cut reliance on China: Details here
Sona Comstar, India's leading importer of rare earth magnets, is set to begin domestic production of these critical components used in electric vehicles (EVs). This move aligns with the government's push to incentivise local production and reduce dependency on China. China currently dominates the global rare earth magnet market, producing around 90 per cent of the world's supply. Recent export restrictions imposed by China in April in response to US tariffs have forced governments and companies worldwide to seek alternative sources. India, which has the world's third-largest car market and its fifth-largest reserves of rare earths, is working on a new programme to incentivise magnet production locally to wean off China. Gurgaon-based Sona Comstar, officially known as Sona BLW Precision Forgings, is the first Indian company to announce plans for local magnet production after the government's program became public, Reuters reported. "Being the largest importer of rare earth magnets, we are the single largest affected party in the country. We have to look at India's self-sufficiency on magnets and are working with the government on it," Sona Comstar CEO Vivek Vikram Singh told Reuters in an interview. The company supplies gears and motors to car makers such as Tesla and Stellantis, and imported around 120 metric tonnes of magnets from China in the last financial year. Singh said the company has the funds for local manufacturing, citing its five-fold increase in revenue to more than $400 million over the past five years. Any plans to mine and process rare earths would take years to develop, so will not provide an immediate solution to reducing reliance on China. Sona Comstar earlier had plans to import 200 tonnes of magnets this year to meet the growing needs of its EV customers which make up about a third of its revenue, Singh said. Geographically, the US currently contributes about 40 per cent of Sona Comstar's revenue, ahead of India and Europe. For future growth, Sona Comstar is looking at acquiring more customers in China, Japan and South Korea. The company's ambitious plans for growth come amid the sudden death of Sona Comstar Chairman Sunjay Kapur in June, which sent the company's shares lower over fears over its future direction. The company appointed Jeffrey Mark Overly as its new chairman. Singh, however, said this will not change the company's course as it is run by a professional team of executives and has the kind of "management bench strength" needed to overcome crises and disruptions, the news agency reported.
Economic Times
a day ago
- Automotive
- Economic Times
Sona Comstar plans to manufacture EV magnets in India amid China export curbs
Sona Comstar, India's biggest importer of rare earth magnets, plans to locally manufacture the critical components used in electric vehicles, tapping into a government push to incentivise their production at home as China restricts their exports. China, which produces around 90% of the world's rare earth magnets, put restrictions in April on their exports as part of its response to U.S. tariffs. While the U.S. and China signed a deal this month to speed up approvals of rare earth exports, governments and companies globally are scrambling to look for alternatives. India, which has the world's third-largest car market and its fifth-largest reserves of rare earths, is working on a new program to incentivise magnet production locally to wean off China. Gurgaon-based Sona Comstar, officially known as Sona BLW Precision Forgings, is the first company in India to announce plans to make magnets domestically after the government's program became public. "Being the largest importer of rare earth magnets, we are the single largest affected party in the country. We have to look at India's self-sufficiency on magnets and are working with the government on it," Sona Comstar CEO Vivek Vikram Singh told Reuters in an interview. The company, which supplies gears and motors to car makers such as Tesla and Stellantis, imported 120 metric tonnes of magnets from China in the last financial year. Singh said the company will look at the Indian incentives once they are finalised, and other factors, to determine its investment in the local manufacturing. He said the company has the funds for local manufacturing, citing its five-fold increase in revenue to more than $400 million over the past five years. Any plans to mine and process rare earths would take years to develop, so will not provide an immediate solution to reducing reliance on China. Sona Comstar itself had plans to import 200 tonnes of magnets this year to meet the growing needs of its EV customers which make up about a third of its revenue, Singh said. The U.S. currently accounts for about 40% of Sona Comstar's revenue, ahead of India and Europe. With the recent acquisition of the Indian railways business of Escorts Kubota, the company has diversified beyond automotive and will see the majority of its revenues coming from India this year. For future growth, Sona Comstar is looking at acquiring more customers in China, Japan and South Korea. The plans for growth come amid the sudden death in June of Sona Comstar Chairman Sunjay Kapur, which sent the company's shares lower over fears over its future direction. The company appointed Jeffrey Mark Overly as its new chairman. Singh, however, said this will not change the company's course as it is run by a professional team of executives and has the kind of "management bench strength" needed to overcome crises and disruptions.
Time of India
a day ago
- Automotive
- Time of India
Sona Comstar plans domestic magnet production to cut China imports
Sona Comstar , India's biggest importer of rare earth magnets , plans to locally manufacture the critical components used in electric vehicles , tapping into a government push to incentivise their production at home as China restricts their exports. China, which produces around 90% of the world's rare earth magnets, put restrictions in April on their exports as part of its response to U.S. tariffs. While the U.S. and China signed a deal this month to speed up approvals of rare earth exports, governments and companies globally are scrambling to look for alternatives. India, which has the world's third-largest car market and its fifth-largest reserves of rare earths, is working on a new program to incentivise magnet production locally to wean off China. Gurgaon-based Sona Comstar, officially known as Sona BLW Precision Forgings, is the first company in India to announce plans to make magnets domestically after the government's program became public. "Being the largest importer of rare earth magnets, we are the single largest affected party in the country. We have to look at India's self-sufficiency on magnets and are working with the government on it," Sona Comstar CEO Vivek Vikram Singh told Reuters in an interview. The company, which supplies gears and motors to car makers such as Tesla and Stellantis, imported 120 metric tonnes of magnets from China in the last financial year. Singh said the company will look at the Indian incentives once they are finalised, and other factors, to determine its investment in the local manufacturing. He said the company has the funds for local manufacturing, citing its five-fold increase in revenue to more than $400 million over the past five years. Any plans to mine and process rare earths would take years to develop, so will not provide an immediate solution to reducing reliance on China. Sona Comstar itself had plans to import 200 tonnes of magnets this year to meet the growing needs of its EV customers which make up about a third of its revenue, Singh said. The U.S. currently accounts for about 40% of Sona Comstar's revenue, ahead of India and Europe. With the recent acquisition of the Indian railways business of Escorts Kubota, the company has diversified beyond automotive and will see the majority of its revenues coming from India this year. For future growth, Sona Comstar is looking at acquiring more customers in China, Japan and South Korea. The plans for growth come amid the sudden death in June of Sona Comstar Chairman Sunjay Kapur, which sent the company's shares lower over fears over its future direction. The company appointed Jeffrey Mark Overly as its new chairman. Singh, however, said this will not change the company's course as it is run by a professional team of executives and has the kind of "management bench strength" needed to overcome crises and disruptions.
&w=3840&q=100)
Business Standard
a day ago
- Automotive
- Business Standard
Sona Comstar plans domestic magnet production to reduce China imports
Sona Comstar, India's biggest importer of rare earth magnets, plans to locally manufacture the critical components used in electric vehicles, tapping into a government push to incentivise their production at home as China restricts their exports. China, which produces around 90 per cent of the world's rare earth magnets, put restrictions in April on their exports as part of its response to U.S. tariffs. While the U.S. and China signed a deal this month to speed up approvals of rare earth exports, governments and companies globally are scrambling to look for alternatives. India, which has the world's third-largest car market and its fifth-largest reserves of rare earths, is working on a new program to incentivise magnet production locally to wean off China. Gurgaon-based Sona Comstar, officially known as Sona BLW Precision Forgings, is the first company in India to announce plans to make magnets domestically after the government's program became public. "Being the largest importer of rare earth magnets, we are the single largest affected party in the country. We have to look at India's self-sufficiency on magnets and are working with the government on it," Sona Comstar CEO Vivek Vikram Singh told Reuters in an interview. The company, which supplies gears and motors to car makers such as Tesla and Stellantis, imported 120 metric tonnes of magnets from China in the last financial year. Singh said the company will look at the Indian incentives once they are finalised, and other factors, to determine its investment in the local manufacturing. He said the company has the funds for local manufacturing, citing its five-fold increase in revenue to more than $400 million over the past five years. Any plans to mine and process rare earths would take years to develop, so will not provide an immediate solution to reducing reliance on China. Sona Comstar itself had plans to import 200 tonnes of magnets this year to meet the growing needs of its EV customers which make up about a third of its revenue, Singh said. The U.S. currently accounts for about 40 per cent of Sona Comstar's revenue, ahead of India and Europe. With the recent acquisition of the Indian railways business of Escorts Kubota, the company has diversified beyond automotive and will see the majority of its revenues coming from India this year. For future growth, Sona Comstar is looking at acquiring more customers in China, Japan and South Korea. The plans for growth come amid the sudden death in June of Sona Comstar Chairman Sunjay Kapur, which sent the company's shares lower over fears over its future direction. The company appointed Jeffrey Mark Overly as its new chairman. Singh, however, said this will not change the company's course as it is run by a professional team of executives and has the kind of "management bench strength" needed to overcome crises and disruptions.
