Archive · 20 Jul 2025
Sona Comstar Enters China EV Market Amid Tariffs and Restrictions
Sona Comstar, an Indian company that makes parts for cars, is starting a new business in China to make parts for electric vehicles (EVs).
They're partnering with a Chinese company called Jinnaite Machinery.
Sona Comstar will invest money and own most of the new company.
This move is happening because their business in the U.S. is being affected by tariffs (taxes on goods) and they are facing some issues in India because China is limiting exports of key materials.
China has the biggest EV market in the world, so Sona hopes this will help them grow and balance their business.
They'll make important parts to supply to EV manufacturers.
Sona Comstar is entering China's EV market via a joint venture with Jinnaite Machinery.
Sona Comstar will invest $12 million and hold 60% of the JV; Jinnaite will contribute $8 million.
The JV will supply driveline components to Chinese and global OEMs, starting operations in the second half of the year.
The move comes as Sona faces US tariff headwinds and rare earth restrictions in India.
China's EV market is the largest globally, holding 66% of the market share, with domestic manufacturers dominating.
- Who
- Sona Comstar and Jinnaite Machinery Co.
- What
- Sona Comstar is entering China's EV market through a joint venture to produce driveline components.
- When
- The joint venture is expected to begin operations in the second half of the current financial year.
- Where
- China
- Why
- To expand into the rapidly growing Asian markets and offset potential revenue hits due to tariffs and supply chain issues.
- JV Investment (Sona Comstar)
- $12 million
- JV Investment (Jinnaite)
- $8 million
- Sona Comstar Stake
- 60%
- China EV Market Share
- 66% of global market
- Sona Comstar Revenue from North America (FY2025)
- 41%
- Sona Comstar Revenue from India (FY2025)
- 29%