Sona Comstar and DENSO Form Joint Ventures for Electric Powertrains

Sona Comstar has signed definitive agreements with Japan-based DENSO Corporation to establish two joint ventures in India focused on electric and hybrid powertrain systems.

Under the terms of the agreement, the first joint venture will focus on electric and hybrid four-wheelers and larger vehicles. DENSO will hold a 51 per cent equity stake and management control, while Sona Comstar will retain a 49 per cent stake. The entity will manufacture high-voltage liquid-cooled traction inverters, traction motors, and generators in India.

The second joint venture will cover two-wheeler and three-wheeler applications. Sona Comstar will transfer its existing electric traction motor and controller business for two- and three-wheelers into a wholly owned subsidiary through a slump sale. DENSO, directly or through affiliates, will acquire a 49 per cent equity stake in that subsidiary at an enterprise value of ₹1,750 crore, while Sona Comstar will hold the remaining 51 per cent and retain management control. This entity will produce air-cooled traction inverters, motors, generators, and e-Axles.

Both companies will license intellectual property and technology know-how to their respective majority-owned joint ventures in exchange for royalty payments. The transactions remain subject to regulatory approvals and customary closing conditions.