Bullish on EV Segment’s Growth, Sona Comstar Earmarks Capex of Rs 60 Crore 

- Advertisement -

Singh noted that the capex also depends on the COVID-situation that how much the company would be able to put in during the fiscal

Gurugram-based auto component company Sona Comstar has earmarked a capex of around Rs 600 crore for the current fiscal as it remains positive about sustaining its growth trends in the current fiscal and beyond, a senior company official told Economic Times. 

MD and Group CEO Vivek Vikram Singh said that a large share of this capex will be spent in the Gurgaon plant to further build the capacity to expand its electric vehicle business. 

- Advertisement -

“The remaining part will be spent in our differential assembly plant as it is already running at full capacity and we need to expand this to cater the growing demand. Additionally, we are also adding forging capacity for gears and electric traction motors for two-wheelers and three-wheelers,” told Singh. 

Singh noted that the capex also depends on the COVID-situation that how much the company would be able to put in during the fiscal. 

The company has an unexecuted order book of INR 14,000 crore at the end of the first quarter which is diversified across electric (including BEV and plug-in hybrids) and non-electric segments contributing around 57 percent and 43 percent respectively.

“The electric share of order is further split into passenger vehicles, two-wheeler, three-wheeler and commercial vehicles. The EV pipeline has 12 different programmes including 5 for PV customers, 3 for two-wheeler and three-wheeler customers and one for electric CV manufacturers,” Singh said.

According to Singh, the company has almost reached that point where it is catering to more hybrids and EVs customers than ICE vehicles. “One out of every eight BEV differential assemblies sold in the world come from our plant in Manesar,” Singh noted.

The company is engaged in the business of manufacturing and assembly of starter motors, controllers, alternators and starter kits forming part of automobiles and EVs in the domestic and global market. The firm invested about INR 219 crore in 2020-21 fiscal. 

Sona Comstar has 9 manufacturing and assembly facilities of which 6 are located in India and one each in China, Mexico and the US. Also it has eight warehouses across India, USA, Germany and Belgium. Its newest Chakan plant, which will manufacture both gears and differential assemblies, will be operational by the end of this year.

Earlier this month, the auto component maker reported its first earnings as a listed entity.Its revenue from operations for Q1 stood at INR 500.7 crore, up from INR 153.36 crore earned during the first quarter of FY21.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

5G Chipset Market to Hit $92.09B by 2030

0
Reports indicate that the global next-gen wireless processor market is on track to surpass the $100 billion mark in the coming decade. The 5G chipset...
Gursaurabh Singh, Founder of Dhruv Vidyut

“Electrifying Rural Mobility- Converting Traditional Bicycles Into E-Bikes”

0
In a conversation with Nitisha Dubey from EFY, Gursaurabh Singh, the Founder of Dhruv Vidyut, discusses their conversion kit, which can transform any conventional...
Rahul Bollini, the Founder of Bollini Energy

“Formal Contracts For Long-Term Commitments Are Not Always Necessary”

0
Bollini Energy collaborates with various companies interested in understanding the complete value chain of Lithium-ion cells. They offer technical services that span from mining...

Buzz

Government Expands Electronics Manufacturing, Doubles Output

0
Ashwini Vaishnaw emphasises government efforts to expand electronics manufacturing, aiming to double production and employment in five years, alongside implementing the DPDP Act. India's electrical...

Assam To See 1000 MW Solar Power Project Shortly

0
The Chief Minister of Assam announced that the construction of the Karbi Anglong solar power project will begin soon.  Himanta Biswa Sarma, the Chief Minister,...

TIER IV And Suzuki Partner For Autonomous Driving In Japan

0
Tier IV, a pioneer in developing Autoware, the first open-source software for autonomous driving in the world, has formed a business alliance with Suzuki...

Important Sectors

Government Expands Electronics Manufacturing, Doubles Output

0
Ashwini Vaishnaw emphasises government efforts to expand electronics manufacturing, aiming to double production and employment in five years, alongside implementing the DPDP Act. India's electrical...

Assam To See 1000 MW Solar Power Project Shortly

0
The Chief Minister of Assam announced that the construction of the Karbi Anglong solar power project will begin soon.  Himanta Biswa Sarma, the Chief Minister,...

TIER IV And Suzuki Partner For Autonomous Driving In Japan

0
Tier IV, a pioneer in developing Autoware, the first open-source software for autonomous driving in the world, has formed a business alliance with Suzuki...

Mahindra Group Pursues Global Partnerships For EV Expansion

0
Mahindra Group seeks global partners for local battery cell production to meet rising electric vehicle demand and plans to list Mahindra Electric Automobile Ltd...

Essar Plans $3.5B Green Hydrogen Plant In Gujarat

0
The Mumbai-based metals-to-infrastructure conglomerate has planned an investment of Rs.30,000 crores in a green hydrogen plant. The company says this will boost its business...

Manufacturing

Honeywell Creates AI Software For Gigafactory Efficiency

0
Honeywell anticipates that its new battery manufacturing excellence platform will lower the costs of cell production, speed up the ramp-up cycles, and decrease material...

Raju B Ketkale Named CEO Of Lumax Industries

0
He takes over from Vishnu Johri, who is stepping down for personal reasons. Lumax Industries Limited, a Tier-1 automotive lighting system and component manufacturer within...

Schaeffler And Symbio JV Innoplate Starts Fuel Cell Plate Production

0
Starting with an initial production capacity of 4 million bipolar plates, the Innoplate joint venture is projected to achieve an annual output of 50...

Tesla Pushes Suppliers To Source Parts Beyond Taiwan And China

0
China and Taiwan are major global producers of essential electronics parts and components. Tesla has requested that its suppliers move the production of components and...

Uno Minda Shines With Increased Content Per Car And EV Focus

0
Uno Minda, a key player in the auto parts industry, has demonstrated significant revenue growth, surpassing industry averages by more than double over the...