Sona BLW forms JV with DENSO for EV powertrain systems, transfers EV biz
Sona BLW is transferring its EV business to Sona eDrive for ₹893.2 crore. DENSO will acquire 49% of Sona eDrive for ₹1,750 crore, creating a JV. A second JV (JV2) with DENSO will focus on 4-wheeler EV powertrains, with Sona BLW holding 49% and investing ₹26.2 crore. The EV business transfer is expected by March 31, 2027.
The formation of joint ventures with a major player like DENSO and the transfer of the EV business represent significant strategic shifts that will likely have a substantial impact on the company's future growth and market position in the electric vehicle segment.
The announcement details strategic partnerships and business restructuring aimed at expanding the company's presence in the EV sector, which is generally viewed positively.
Sona BLW Precision Forgings Limited announced a significant strategic move following its Board Meeting on July 22, 2026. The company has approved the carve-out and transfer of its Electric Vehicle (EV) business, comprising air-cooled traction motors, generators, inverters, and eAxles for 2 and 3-wheeler applications, to its wholly-owned subsidiary, Sona Comstar eDrive Private Limited (Sona eDrive), via a slump sale. The aggregate consideration for this transfer is ₹8,932 million (approximately ₹893.2 crore), comprising ₹8,575 million (₹857.5 crore) in cash and the balance through equity shares in Sona eDrive.
Concurrently, Sona BLW has entered into a joint venture with DENSO Corporation, Japan. DENSO will acquire a 49% equity stake in Sona eDrive for an enterprise value of ₹17,500 million (₹1,750 crore), making Sona eDrive a joint venture where Sona BLW will hold 51% and DENSO 49%. This partnership aims to leverage DENSO's expertise to expand product offerings and customer reach.
Furthermore, Sona BLW and DENSO will establish a separate joint venture (JV2) in India focused on liquid-cooled traction motors, generators, and inverters for 4-wheeler and heavier electric and hybrid applications, excluding eAxles. DENSO will hold a 51% stake in JV2, with Sona BLW holding 49%, involving an investment of ₹262.15 million (₹26.215 crore) from Sona BLW. The total investment for JV2 from both parties is ₹535 million (₹53.5 crore).
These transactions are subject to customary closing conditions, regulatory approvals, and shareholder consent. The slump sale of the EV business is expected to be completed by March 31, 2027. Additionally, the Board has approved the re-constitution of the Audit Committee, inducting Mrs. Priya Sachdev Kapur as a member.
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Sona BLW Precision Forgings Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Sona BLW Precision Forgings Limited. Read the original for the full detail.