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Auto Parts Maker Sona BLW Plans Large Investments Globally In EV Push


21/05/2022


Auto Parts Maker Sona BLW Plans Large Investments Globally In EV Push
Sona BLW Precision Forgings, an Indian auto parts manufacturer, expects electric vehicle (EV) components to account for two-thirds of its income in the next years, as automakers in India as well as the rest of the world sped up to manufacture more environmentally friendly vehicles, according to the chairman of the company.
 
Sona BLW, which makes powertrain components including motors and gears, has drawn up elaborate plans to invest about $130 million in its electrification push over the next three years, according to Sunjay Kapur.
 
Auto part suppliers are diversifying their operations to new and clean technologies, shifting away from gasoline-reliant supply chains, while carmakers invest billions in EV development.
 
"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 began investing in electric vehicle parts in 2015 and primarily sells to automakers in North America, Europe, and China.
 
It has formed relationships with international firms to produce electric motors, and it is also collaborating with Israel's IRP to develop magnet-less motors to reduce reliance on scarce raw materials.
 
The company's early commitment on electric vehicles has helped it develop its manufacturing capacity in India, providing it a cost and technology advantage, according to Kapur.
 
To accomplish its climate and carbon reduction targets, India wants to speed up the adoption of electric vehicles, and Prime Minister Narendra Modi's administration is paying businesses billions of dollars in incentives to produce clean vehicles and components.
 
The government wants electric cars to account for 30 per cent of total car sales by 2030, up from a small percentage now.
 
"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.
 
(Source:www.reuters.com)