Source: Gasgoo
According to foreign media reports, Indian auto parts manufacturer Sona Comstar is in talks with automakers from China, Japan, and South Korea to expand its business to markets outside North America and Europe. It is reported that Sona Comstar is a supplier to companies such as Ford and Stellantis.
Sona Comstar CEO Vivek Vikram Singh said in an interview that the group is engaged in “active discussions” with automakers in these regions to supply parts for electric, hybrid, and internal combustion engine vehicles.
Singh did not reveal the names of the automakers, but expects revenue from countries in the East to account for more than half of the company’s revenue within five years. By contrast, Europe and North America currently account for 66%, while India accounts for 28%.
Image Source: Sona Comstar
“It is no longer enough to grow by increasing market share alone,” Singh told reporters. He added that the company needed to explore new markets. Although the Eastern region, including India, accounts for nearly half of the global automotive market, Sona currently has a relatively small market share in the region, he said.
Singh expects light vehicle sales in North America and Europe to shrink to 34 million units this year from 37 million in 2015.
In contrast, in the Chinese market, sales of electric vehicles, plug-in hybrids and extendable vehicles will increase by 50% year-on-year in 2024, accounting for more than half of the total of 20 million units sold.
With car sales stagnating in the United States and Europe and automakers’ electrification plans progressing slowly, companies are looking to invest in mobility businesses and new technologies beyond cars to achieve new growth over the next decade, Singh said.
Singh added: “Over the past nine years, we have grown more than nine-fold by focusing on electrification, expanding our market share in North America and Europe, and launching new products. To increase our current size by another nine times, we need to open up new businesses.”
Sona Comstar, which has a market capitalization of more than $4.7 billion, is best known for making differential gears that allow wheels to spin at different speeds, as well as starting motors for certain hybrid cars. The company’s net order book was $2.7 billion, of which nearly 80% came from electric vehicle components.
