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India’s EV Push to Bring Boom for Makers of Automotive Parts

With carmakers investing in EVs, parts suppliers are also diversifying their business towards new and clean technologies and moving away from petrol-reliant supply chains


India's push towards EVs is likely to bring boom times for makers of electric vehicle parts such as Sona BLW Precision Forgings.
Sona BLW chairman Sunjay Kapur said the early bet on EVs globally has helped the company scale its manufacturing capacity in India, giving it a headstart in terms of cost and technology. Photo: Reuters.

 

India’s push towards electric vehicles (EV) is likely to bring boom times to automotive parts makers such as Sona BLW Precision Forgings.

Sona BLW – based near Delhi – started investing in EV parts in 2015 and supplies them to carmakers in North America, Europe and China.

The company produces drivetrain components such as motors and gears and will invest about $130 million over the next three years towards its electrification push, chairman Sunjay Kapur said.

With carmakers investing billions of dollars to build EVs, parts suppliers are also diversifying their business towards new and clean technologies and moving away from petrol-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.

 

ALSO SEE: India’s Tata Seen Ramping up Output of Electric Vehicles

 

 

Partnerships with Global Companies

The company has entered into partnerships with global companies to build electric motors and is also working with 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.

 

  • Reuters, with additional editing by George Russell

 

 

READ MORE:

India EV Industry May Fall Short of Targets – Mint

Tesla Shelves Plans to Roll Out EVs in India Amid Tariff Woes

India’s Tata Plans EVs with Larger Batteries, Longer Ranges

 

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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