Latest news with #JNT
Business Standard
3 days ago
- Automotive
- Business Standard
Sona BLW gains as it enters China through JV with Jinnaite Machinery
Sona BLW Precision Forgings climbed 1.89% to Rs 488.80 after the company announced a joint venture with China's Jinnaite Machinery Co., Ltd (JNT), marking its foray into the world's largest auto market. The two firms signed a binding term sheet to set up a joint venture (JV) that will manufacture and supply driveline systems and components for automotive OEMs in China and across global markets. Sona Comstar will invest $12 million and hold a 60% stake, while JNT will contribute $8 million in assets and business in the first phase. Operations are expected to kick off in the second half of the current financial year, targeting both EV and internal combustion engine customers. The move is part of Sona Comstars broader strategy to deepen its footprint in fast-growing Asian markets. China, which sold 11 million EVs in 2024, now accounts for two-thirds of global EV sales. Chinese OEMs dominate the space, capturing 76% of global EV market share, and boosting their exports from 1 million units in 2020 to over 6 million in 2024. JNT runs a foundry with patented technologies, boasting 63 patents and 36 proprietary innovations, making it a key player in precision casting and mold-making. It has a strong customer base in the automotive, off-highway, and railway sectors. It supplies to the leading Chinese automotive OEMs, as well as North American, European, and Japanese OEMs. Vivek Vikram Singh, MD & Group CEO of Sona Comstar, said: "I am excited to partner with JNT to establish a driveline manufacturing plant in China. This joint venture marks a significant step in our strategy to expand into the rapidly growing Asian markets. As the largest electric vehicle market in the world and a leader in EV technologies, China offers tremendous opportunities for innovation and growth. By leveraging the strengths of both partners, this venture is well-positioned for strong growth, and it has the potential to become a key supplier of driveline solutions for electric vehicles in the region. With a robust order book already in place, we expect operations to commence later this year." Gurugram-based Sona BLW Precision Forgings primarily designs, manufactures, and supplies highly engineered, mission-critical automotive systems and components to automotive OEMs. It is a leading supplier to the fast-growing global Electric Vehicle (EV) market. Sona Comstar is the leading supplier of safety systems for railways in India. The company had reported 10.38% rise in consolidated net profit to Rs 164.12 crore on a 2.19% fall in revenue to Rs 864.75 crore in Q1 FY26 as compared with Q1 FY25.
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Business Standard
3 days ago
- Automotive
- Business Standard
How will Sona BLW's JV with JNT unlock ₹1,670 crore TAM? Stock up 3%
Sona BLW Precision Forgings shares rose 3.4 per cent, logging an intraday high at ₹496.3 per share on BSE. At 12 PM, Sona BLW share price was trading 1.72 per cent higher at ₹258.8 per share on the BSE. In comparison, the BSE Sensex was up 0.36 per cent at 82,052.49. The company's market capitalisation stood at ₹30,339.98 crore. The 52-week high of the stock was at ₹767.8 per share, and the 52-week low of the stock was at ₹379.8 per share. Why were Sona BLW Precisions shares buzzing in trade? The buying interest on the counter came after the company signed a binding term sheet with Jinnaite Machinery (JNT) to establish a joint venture (JV) company in China. According to the filing, the JV will manufacture and supply driveline systems and components to automotive original equipment manufacturers (OEMs) in China and globally. Sona Comstar will invest $12 million, while JNT will contribute $8 million in assets and business to the joint venture in the first phase. The JV is expected to commence operations in the second half of the current financial year, marking a significant milestone in Sona Comstar's expansion into the Chinese EV market. The driveline manufacturing operations in China align with the company's strategy to expand its presence in Asian markets, particularly in India, China, Japan, and South Korea, while also working to increase its market share further in North America and Europe, according to Sona BLW Domestic brokerage JM Financial Institutional Securities believes this JV will represent a significant growth opportunity for Sona BLW as the company would not have entered this venture without a strong anchor customer (mostly BYD). Based on the brokerages estimates, the JV could unlock a total addressable market (TAM) of ₹1,670 crore (48 per cent of Sona's FY25 revenue), with potential upside if the JV onboards other global and domestic EV players like Tesla in China. The brokerage has maintained a 'Buy' on the stock with a target of ₹630 per share. About Sona BLW Sona Comstar is a global supplier of driveline solutions for various automotive segments and is strategically expanding its presence in the faster-growing Asian markets. The company is the largest supplier of differential assemblies for battery electric vehicles (BEVs) in North America and ranks among the top suppliers in Europe. About Jinnaite Machinery Co The company operates a world-class foundry utilising patented technology to manufacture complex castings and molds. JNT holds 63 patents and 36 proprietary technologies, and it is actively engaged in the formulation of Chinese national standards, having contributed to the development of five national standards. Its strong customer base in the automotive, off-highway, and railway sectors, including leading Chinese automotive OEMs, as well as those from North America, Europe, and Japan, further underscores its expertise and capabilities.
Time of India
3 days ago
- Automotive
- Time of India
Sona Comstar to form $20 mn JV with China's JNT for driveline systems
Automotive components supplier Sona BLW Precision Forgings ( 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.
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Business Standard
3 days ago
- Automotive
- Business Standard
How could Sona BLW's JV with JNT unlock ₹1,670 crore TAM? Stock up 3%
Sona BLW Precision Forgings shares rose 3.4 per cent, logging an intraday high at ₹496.3 per share on BSE. At 12 PM, Sona BLW share price was trading 1.72 per cent higher at ₹258.8 per share on the BSE. In comparison, the BSE Sensex was up 0.36 per cent at 82,052.49. The company's market capitalisation stood at ₹30,339.98 crore. The 52-week high of the stock was at ₹767.8 per share, and the 52-week low of the stock was at ₹379.8 per share. Why were Sona BLW Precisions shares buzzing in trade? The buying interest on the counter came after the company signed a binding term sheet with Jinnaite Machinery (JNT) to establish a joint venture (JV) company in China. According to the filing, the JV will manufacture and supply driveline systems and components to automotive original equipment manufacturers (OEMs) in China and globally. Sona Comstar will invest $12 million, while JNT will contribute $8 million in assets and business to the joint venture in the first phase. The JV is expected to commence operations in the second half of the current financial year, marking a significant milestone in Sona Comstar's expansion into the Chinese EV market. The driveline manufacturing operations in China align with the company's strategy to expand its presence in Asian markets, particularly in India, China, Japan, and South Korea, while also working to increase its market share further in North America and Europe, according to Sona BLW Domestic brokerage JM Financial Institutional Securities believes this JV will represent a significant growth opportunity for Sona BLW as the company would not have entered this venture without a strong anchor customer (mostly BYD). Based on the brokerages estimates, the JV could unlock a total addressable market (TAM) of ₹1,670 crore (48 per cent of Sona's FY25 revenue), with potential upside if the JV onboards other global and domestic EV players like Tesla in China. The brokerage has maintained a 'Buy' on the stock with a target of ₹630 per share. About Sona BLW Sona Comstar is a global supplier of driveline solutions for various automotive segments and is strategically expanding its presence in the faster-growing Asian markets. The company is the largest supplier of differential assemblies for battery electric vehicles (BEVs) in North America and ranks among the top suppliers in Europe. About Jinnaite Machinery Co The company operates a world-class foundry utilising patented technology to manufacture complex castings and molds. JNT holds 63 patents and 36 proprietary technologies, and it is actively engaged in the formulation of Chinese national standards, having contributed to the development of five national standards. Its strong customer base in the automotive, off-highway, and railway sectors, including leading Chinese automotive OEMs, as well as those from North America, Europe, and Japan, further underscores its expertise and capabilities.
New Indian Express
3 days ago
- Automotive
- New Indian Express
Sona Comstar enters Chinese market through Jinnaite Machinery joint venture
NEW DELHI: Auto component major Sona Comstar has formed a joint venture with Jinnaite Machinery to enter the Chinese electric vehicle market with an investment of $12 million (about Rs 100 crore). Sona Comstar will invest $12 million and have a 60% stake, while JNT will contribute $8 million in assets and business to the joint venture in the first phase. The JV will commence operations in the second half of financial year 2026 to fulfil existing orders from EV and non-EV customers. Sona said that they will manufacture and supply driveline systems and components to automotive OEMs in China and globally. 'The JV will manufacture and supply driveline systems and components to automotive OEMs in China and globally. The Board has approved the binding Term Sheet, as mutually agreed between Sona Comstar and JNT. The JV is expected to commence operations in the second half of the current financial year,' said Comstar in an exchange filing on Sunday. Shares of Sona BLW Precision Forgings Ltd (Sona Comstar) surged as much as 3.48% to Rs 496.45 apiece on the NSE on Monday morning. Sona Comstar is the largest supplier of differential assemblies for battery electric vehicles) in North America and ranks among the top suppliers in Europe. Jinnaite Machinery operates a world-class foundry utilizing patented technology to manufacture complex castings and molds. JNT has strong customer base in the automotive, off-highway, aviation, railway, and marine sectors, including leading Chinese automotive OEMs, as well as North American, European, and Japanese OEMs. "As the largest electric vehicle market in the world and a leader in EV technologies, China offers tremendous opportunities for innovation and growth. By leveraging the strengths of both partners, this venture is well-positioned for strong growth, and it has the potential to become a key supplier of driveline solutions for electric vehicles in the region. With a robust order book already in place, we expect operations to commence later this year," said Vivek Vikram Singh, MD & Group CEO of Sona Comstar. China is the world's largest automotive market, especially for electric vehicles. In 2024, annual EV sales in China reached 11 million', accounting for two-thirds of global EV sales. Chinese OEMs dominate this market, accounting for 76% of global EV sales last year. Their share in international markets has also risen significantly, with exports increasing from 1 million in 2020 to over 6 million in 2024. Sona Comstar said that it is natural for any company with aspirations to be a global EV supplier to be part of the Chinese market and supply chain.
