en.Wedoany.com Reported - Indian automotive technology company Sona BLW Precision Forgings Ltd (Sona Comstar) announced the signing of a definitive agreement with DENSO Corporation to establish two joint ventures for the design, development, manufacturing, and sale of electric and hybrid powertrain systems for passenger cars, commercial vehicles, two-wheelers, three-wheelers, and large vehicle applications.

The transaction is subject to regulatory approvals and customary closing conditions. One joint venture will develop high-voltage liquid-cooled traction inverters, traction motors, and generators for electric and hybrid passenger cars, commercial vehicles, and other high-voltage applications. DENSO will hold a 51% equity stake and management control of this venture, with Sona Comstar holding the remaining 49%.

The second joint venture will focus on air-cooled traction inverters, traction motors, generators, and e-axles for electric and hybrid two-wheelers and three-wheelers. Sona Comstar will transfer its existing two-wheeler and three-wheeler electric traction motor and controller business to its wholly-owned subsidiary through an asset sale. DENSO (directly or through its affiliates) will acquire a 49% stake in this entity at an enterprise valuation of INR 17.5 billion, while Sona Comstar will retain a 51% stake and management control. Both companies will license intellectual property and know-how to their respective controlled joint ventures and receive royalties.

Vivek Vikram Singh, Managing Director and Group CEO of Sona Comstar, stated that companies investing continuously in innovation, product development, and advanced technology industrialization will define future mobility, and this partnership marks a significant milestone in Sona Comstar's journey. The collaboration will also accelerate the growth of its existing two-wheeler and three-wheeler electric powertrain business by strengthening its capabilities in the powertrain value chain. Tsuneo Maebara, Head of the Powertrain Systems Business Group at DENSO, noted that India is an important region where various mobility modes coexist and electrification is advancing on a large scale, and this partnership will combine the strengths of both companies to provide electrification solutions for Indian customers while supporting DENSO's electrification business and future global opportunities.

According to both parties, the collaboration aims to combine DENSO's capabilities in electrification technology, product engineering, and R&D with Sona Comstar's strengths in engineering, manufacturing, and supply chain to develop electric and hybrid powertrain systems for both domestic and global markets.