- Sona Comstar plans to manufacture rare earth magnets locally to reduce reliance on China.
- The company imported 120 tonnes of magnets last year, plans 200 tonnes this year.
- Revenue grew five-fold to over $400 million, supporting investment in domestic production.
Sona Comstar, officially Sona BLW Precision Forgings is set to manufacture rare earth magnets locally in India, aligning with government incentives to boost domestic production. As India's largest importer of these critical electric vehicle components, the company aims to reduce reliance on China, which has imposed export restrictions. "We have to look at India's self-sufficiency on magnets and are working with the government on it," said CEO Vivek Vikram Singh.
Sona Comstar had imported 120 metric tonnes of magnets in the last financial year in a bid to provide gears and motors to automakers such as Tesla and Stellantis. As the demand of EVs increased, the company intended to source 200 tonnes this year and EVs are expected to contribute approximately one-third of its revenue.
Vivek indicated that the firm will consider the concluded government incentives and other influences to finance its investment in local magnet production. He also highlighted the financial preparedness of Sona Comstar giving emphasis to the fivefold increment in revenue to above 400 million in last five years.
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As the first Indian company to announce domestic magnet production following the government’s program, Sona Comstar is significantly impacted by import dependency. "Being the largest importer of rare earth magnets, we are the single largest affected party in the country," Singh stated. However, establishing mining and processing for rare earths will take years, offering no immediate solution to the reliance on China.
The U.S. currently contributes 40% of Sona Comstar’s revenue, followed by India and Europe. The recent acquisition of Escorts Kubota’s Indian railways business has diversified the company beyond automotive, with India expected to become its primary revenue source this year.
Sona Comstar aims to expand its customer base in China, Japan, and South Korea to drive future growth.