Sona BLW Precision Forgings Ltd has signed definitive agreements with Japan-based DENSO Corporation to establish two joint ventures focused on developing, manufacturing and marketing advanced electric and hybrid powertrain systems. According to reports from CNBC TV18, ETAuto and ANI, the partnership aims to combine DENSO's electrification technology and research capabilities with Sona Comstar's engineering and manufacturing expertise. The definitive agreements were signed on Wednesday (July 22) with the aim of building electric mobility solutions focused on performance, quality, reliability and sustainability. As per ETAuto, the partnership will develop powertrain systems for passenger vehicles, commercial vehicles, two-wheelers, three-wheelers and larger vehicle applications, with the joint ventures anchored in India. The Board of Directors approved the transactions at its meeting held on July 22, 2026, subject to regulatory and shareholder approvals.
The first joint venture will focus on high-voltage liquid-cooled traction inverters, traction motors and generators for electric and hybrid four-wheelers and larger vehicle applications. As reported by CNBC TV18, ETAuto and ANI, the companies have entered into a Joint Development Agreement (JDA) to develop high-efficiency liquid-cooled traction inverters, traction motors and generators for electric and hybrid passenger vehicles, commercial vehicles and other high-voltage applications. To commercialise these products, the partners will set up a manufacturing joint venture in India, with DENSO holding a 51% equity stake and assuming management control, while Sona Comstar will hold the remaining 49% stake and contribute its engineering capabilities, manufacturing expertise and supply chain ecosystem. The products will be jointly developed under the JDA before being manufactured in India through the new entity.
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. According to CNBC TV18, ETAuto and ANI, as part of this transaction, Sona Comstar will transfer its existing electric traction motor and controller business for two-wheelers and three-wheelers into its wholly owned subsidiary through a slump sale. Following the transfer, DENSO, directly or through its affiliates, will acquire a 49% equity stake in the entity at an enterprise value of ₹17,500 crore, while Sona Comstar will retain a 51% stake and management control. The collaboration combines DENSO's capabilities in electrification technologies, product engineering and research and development with Sona Comstar's engineering, manufacturing and supply chain capabilities to develop electric and hybrid powertrain systems in India for domestic and global markets.
The low-voltage EV business transfer involves Sona Comstar slump-selling its 2W/3W EV business to Sona eDrive for ₹893.2 crore, split as ₹857.5 crore cash and ₹35.7 crore via equity share allotment. Following this transaction, DENSO will acquire a 49% equity stake in Sona eDrive at an enterprise value of ₹17,500 million, while Sona Comstar retains the remaining 51% stake and management control. This dual-JV structure provides Sona Comstar with ₹857.5 crore in direct cash inflow, reinforcing the company's balance sheet and providing funding for local manufacturing expansions and its newly approved ₹62.6 crore robotics initiative. The transaction is subject to receipt of relevant regulatory approvals and completion of customary closing conditions mutually agreed between the parties.
Shares of Sona BLW Precision Forgings Ltd ended at ₹726.50, down by 0.85%, on the National Stock Exchange following the announcement. As reported by CNBC TV18, ETAuto and ANI, both DENSO and Sona Comstar will license their respective intellectual property and know-how to their majority-owned joint ventures against payment of royalty. The development came after market hours on Wednesday, July 22, 2026. Calling the partnership a "historic milestone", Vivek Vikram Singh, Managing Director and Group CEO of Sona Comstar, said the alliance combines DENSO's global expertise in electrification with Sona Comstar's engineering and manufacturing capabilities. He said the collaboration would strengthen the company's electric powertrain business, expand its product portfolio and enable it to serve a wider customer base across vehicle segments. Tsuneo Maebara, Head of Powertrain Systems Business Group at DENSO Corporation, said the partnership will bring together respective strengths to provide electrification solutions addressing diverse customer needs in India.
