Sona Comstar bags Rs 913 crore order for traction motors from 2W OEM
This brings the company's total orderbook to about Rs 20,500 crore, with EVs now accounting for two-thirds of those orders.
The deal for the OEM's premier electric two-wheeler, according to Sona Comstar management, was reached following year-long technical discussions with the customer.
Gurugram-headquartered Sona Comstar has received its first order of this size from a reputed Indian two-wheeler OEM for traction motor components valued at Rs 913 crore. The new order announcement was made during Q1FY23 results. This brings the company's total orderbook to about Rs 20,500 crore, with EVs now accounting for two-thirds of those orders.
Traction motors are a high-income-generating product for the company; a back-of-the-envelope assessment suggests that every Re 1 invested in the items yields approximately Rs 5-5.5 in revenue returns. In contrast, other products like differential assemblies or gear assemblies generate earnings of roughly Rs 2 for every Rs 1 invested. The revenue per traction motor unit is in the region of Rs 12,000 to Rs 14,000.
The deal for the OEM's premier electric two-wheeler, according to Sona Comstar management, was reached following year-long technical discussions with the customer. "Production is likely to start in FY2023.", the company informed Autocar Professional in a statement.
At present, 4 percent of the company's revenues come from the electric two-wheeler traction motors and controllers area. The increase in demand for traction motors appears to be related to the company's decreasing reliance on ICE, which fell to 17 percent during the first quarter of the current fiscal from 25 percent in FY2021. Sona Comstar anticipates that by FY2027, its revenue share from the electric car market will reach 50 percent.
Driveline and motors are two of Sona Comstar's business verticals, each having 13 items. There are nine manufacturing plants and three R&D centres spread across India, the US, China, and Mexico. Differential assemblies, reduction gears, traction motors, motor controllers, e-axles, and integrated modules are just a few of the company's EV-focused products.
According to industry projections, the global traction motor market is forecast to grow from $12,260 million (Rs97,748 crore) in 2020 to $27,860 million (Rs2,22,127 crore) by 2026 at a CAGR of 14.7 percent from 2021 to 2026.
Sona Comstar records 100,000 EV traction motors production milestone in 21 months
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