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Sona BLW Precision Forgings, an Indian auto parts manufacturer, said that two-thirds of its income will come from electric vehicle components as Indian automakers push to make more green cars.
Sona BLW is a manufacturer of drivetrain components like motors and gears. It will invest approximately $130 million in the next three years to support its electrification push.
Auto part suppliers are diversifying their business away from petroleum-reliant supply chains and shifting towards clean technologies as carmakers invest billions of dollars in EVs.
Sunjay Kapur stated that all of Sona’s new investments would go toward electrification. He also said that $2.4 billion of Sona’s order book over the next few decades will be for EV components.
Sona BLW began investing in EV parts around 2015 and mainly supplies them to automakers in North America and Europe.
It has formed partnerships with international companies to develop electric motors. Additionally, it is working with Israel’s IRP to develop magnet-less motors in order to reduce dependence on scarce raw materials.
Kapur stated that the company’s early investment in EVs worldwide has allowed it to speed up its manufacturing capacity in the country and give it a competitive edge in terms of technology and cost.
India is keen to boost the push for EVs in order to meet its climate goals as well as carbon reduction goals. Prime Minister Narendra Modi’s administration offers billions of dollars to companies as incentives to make clean cars and components.
From a fraction of today’s car sales, the government wants 30% of all total electric vehicle sales by 2030.
“If you want to invest in EVs, infrastructure and components (in India), you need to look at larger markets. We look at markets outside of India and that knowledge we bring back to India to fuel growth here,” Kapur said.