Indian auto parts supplier Sona BLW bets on global EV push

Sona Blw Precision Forgings

20/05/2022 07:02

By Aditi Shah
    NEW DELHI, May 20 (Reuters) - Indian auto parts maker Sona
BLW Precision Forgings  SONB.BO  expects two-thirds of its
revenues to come from electric vehicle (EV) components over the
next few years, as automakers rush to build more clean cars, its
chairman told Reuters.
    Sona BLW, which produces drivetrain components such motors
and gears, will invest about $130 million over the next three
years towards its electrification push, Sunjay Kapur said in a
recent interview.
    With carmakers investing billions of dollars to build EVs,
auto part suppliers are also diversifying their business towards
new and clean technologies and moving away from gasoline-reliant
supply chains. 
    "All our new investments will go towards electrification,"
Kapur said, adding that the bulk of Sona's order book of $2.4
billion over the next few years is for EV components.
    Sona BLW started investing in EV parts in 2015 and mainly
supplies them to carmakers in North America, Europe and China. 
    It has entered into partnerships with global companies to
build electric motors and is also working with an Israel's IRP
on developing magnet-less motors to cut dependence on key raw
materials that are in short supply. 
    The early bet on EVs globally has helped the company scale
its manufacturing capacity in India, giving it a headstart in
the country in terms of cost and technology, Kapur said.
    India wants to accelerate the push to EVs to meet its
climate and carbon reduction goals, and Prime Minister Narendra
Modi's administration is offering companies billions of dollars
in incentives to build clean cars and their components.
    The government is aiming for 30% of total car sales to be
electric by 2030 from a fraction today.     
    "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. 
($1 = 77.5250 Indian rupees)

 (Reporting by Aditi Shah; Editing by Kim Coghill)
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