The tier-one supplier has allocated Rs 90-100 billion for capital expenditure over the next three years to meet its current order book of approximately Rs 2.05 trillion.
       Sona Comstar’s product range covers six main component categories. The company developed and commercialized spiral bevel gears with a predetermined shape, becoming one of the few companies in the world to achieve this.
       Of the approximately Rs 10 billion capital expenditure, 80% will be spent on powertrain expansion and the remaining on other activities to enable production volumes to be scaled up in FY2024.
       Sona Comstar, a Tier 1 supplier headquartered in Gulgaria, has developed and commercialized spiral bevel gears, which the company claims makes it one of the few companies in the world to have successfully developed this technology.
       The company’s management stated that the new product uses less steel, resulting in a higher-quality grain structure compared to products manufactured using traditional machining methods, and therefore helping to reduce overall costs. They added that traditionally, bevel gears with spiral teeth used in automotive differentials are manufactured by cutting the teeth.
       ”In the second quarter of fiscal year 2023, we developed and launched a pre-formed helical bevel gear, possibly the world’s first,” said Vivek Vikram Singh, managing director and CEO of Sona Comstar. Singh added that the company will supply this product to a global agricultural equipment manufacturer (OEM), emphasizing that it took nearly ten years to successfully develop and launch the product. “This opens up new markets and new revenue streams for us,” he continued.
       According to industry estimates, the Indian automotive differentials market is expected to grow by US$4.85 billion (RM402.06 billion) between 2021 and 2026, registering a CAGR of 4.07%.
       Sona Comstar designs, manufactures, and supplies high-tech, mission-critical automotive systems and components to vehicle manufacturers, and also provides services in precision forging, mechanical and electrical systems, and core and application software development.
       To fulfill the existing order book of 205 billion rupees, the company’s senior management announced plans to invest approximately 9 to 10 billion rupees in capital expenditures over the next three years during a recent earnings conference call. It is estimated that approximately 80% of the capital expenditures will be allocated to developing the powertrain business, with the remainder used in other areas of the business to expand production capacity by fiscal 2024.
       Sona Comstar has a massive order book worth Rs 205 billion, with more than two-thirds of this amount being for electric vehicle components.
       ”We continue to make progress on our key strategic priorities. Our net order book remains strong at 205 billion rupees, with more than two-thirds of this amount coming from electric vehicles. We will continue to focus on research and development to create breakthrough products for our customers,” Singh said.
       The company has also secured a new contract from an Indian passenger car and commercial vehicle manufacturer to supply differentials for its upcoming all-electric vehicle models, Singh said.
       Looking at the investment breakdown, it’s worth noting that the largest portion will be allocated to differential assemblies, gears, and other electric vehicle drivetrain components. The second-largest investment will be for integrated engine control modules (IMCMs) for high-performance automotive suspensions—a product the company launched earlier this year. Company representatives added that the third-largest investment will be used to expand production capacity for differential gears.
       As part of its expansion plans, the company is currently shifting production from its existing plant in Bhosari, near Pune, to a new, larger facility in Chakan, part of Pune’s automotive industrial belt. The new plant, which occupies 10 acres, compared to the existing 1.12 acres, will increase its capacity and better meet growing demand from its powertrain division. Also read: Sona Comstar Reaches Production Milestone of 100,000 Electric Vehicle Traction Motors in 21 Months
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