Auto component major Sona BLW Precision Forgings (Sona Comstar) said on Monday that it has decided to keep its joint venture with China-based Jinnaite Machinery Co. Ltd. (JNT) in abeyance, citing geopolitical factors.
“The parties have mutually agreed to put the proposed JV in abeyance. The parties however have expressed their willingness to cooperate with each other on select foundry products and remain open for collaboration in future. The term sheet executed by the parties for the proposed JV on 20th July, 2025 stand rescinded,” said Sona Comstar in an exchange filing while reporting its July-September quarter earnings.
Sona Comstar MD and Group CEO Vivek Vikram Singh said that the decision is based mostly on geopolitical factors and the need to prioritize other active capital allocation decisions.
Amid an improvement in trade and diplomatic ties between India and China, Sona had formed a JV with Jinnaite Machinery in July 2025 to enter the Chinese electric vehicle market with an investment of $12 million (about Rs 100 crore).
Sona had said that they will manufacture and supply driveline systems and components to automotive OEMs in China and globally. The company had stated 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.
Sona Comstar on Monday reported a 24% year-on-year rise in its Q2FY26 revenue at Rs 1,144 crore and the firm's PAT for the quarter grew 20% to Rs 173 crore.
Singh said the revenue growth was primarily driven by the expansion of the company's electric vehicle traction motor and railway business in India.
“Due to the unavailability of heavy rare-earth magnets, we shifted to alternative motor designs and now manufacture light rare-earth magnet motors for electric two-wheelers. We have developed a rare-earth-free ferrite-assisted synchronous reluctance motor for three-wheelers and light commercial vehicles,” he said.
“We received our first order from our new driveline plant in Mexico to supply differential assemblies to an OEM in the USA, amid ongoing trade uncertainties. Lastly, we are partnering with Neura Robotics to jointly develop advanced components and technologies, with a focus on industrializing robots, cobots, and humanoids in India and other markets,” stated Singh.
