Indian auto parts makers seek Chinese fix amid Western EV breakdown

Subscribe to enjoy similar stories. NEW DELHI : India’s leading auto component manufacturers will look to hitch a ride with Chinese carmakers amid Western auto giants’ faltering electric-vehicle (EV) bets. The Ford Motor Co.

announcement that it expects to write down $19.5 billion in EV investments—the largest impairment taken by a US automaker—has brought into the spotlight the commentary of at least two domestic auto parts makers—Sona BLW Precision Forgings Ltd (Sona Comstar) and Samvardhana Motherson International Ltd—on their ability to win the Chinese business. In its 13 November investor presentation, Motherson’s leadership noted that the company is already working with seven out of the top 10 Chinese carmakers. “[We are] supplying to seven out of the top 10 local NEV (New Energy Vehicle) Chinese players [and] supporting Chinese OEMs (original equipment manufacturers) in their production outside of China," the presentation noted.

Sona Comstar, on the other hand, was looking at the opportunity with caution. “I think the opportunity in China, we will pursue with a very high degree of caution. What we can do with our existing plant in China, we will continue to address, as you know, we have a plant there," said Group chief executive and managing director Vivek Vikram Singh when asked if the company can strengthen its ties with Chinese OEMs to diversify its business during the 31 October earnings call.

In July, it announced a joint venture (JV) with China-based Jinnaite Machinery, officially known as Xiangyang Jinnaite Machinery Co. Ltd, to expand its presence in the market, but later put it on hold. Singh, however, acknowledged that there was a good business rationale to pursue the opportunity if local dynamics