India's auto component major Sona BLW Precision Forgings Ltd (Sona Comstar) has decided to keep its proposed joint venture with China-based Jinnaite Machinery Co. Ltd. (JNT) in abeyance, citing geopolitical factors.
Both companies had been in discussions to finalize definitive agreements following the signing of a binding term sheet on July 20, 2025. However, Sona Comstar MD and group CEO Vivek Vikram Singh said that both sides have now mutually agreed to put the JV on hold.
The proposed joint venture was aimed at strengthening Sona Comstar’s capabilities in precision-forged components and expanding its presence in the Chinese market.
"This decision is based mostly on geopolitical factors and the need to prioritize other active capital allocation decisions,” Singh said.
The partnership was proposed to manufacture and supply driveline systems and components to automotive original equipment manufacturers in China and globally. Sona Comstar was planning to invest $12 million for a 60% stake, while Jinnaite Machinery would contribute $8 million in assets for a 40% stake.
Jinnaite Machinery operates a foundry that manufactures complex castings and molds using patented technology. The Chinese company serves customers across the automotive, off-highway, aviation, railway, and marine sectors, including Chinese automotive manufacturers as well as North American, European, and Japanese original equipment manufacturers.
Sona Comstar noted that both companies remain willing to cooperate on select foundry products and are open to future collaboration opportunities.