Sona Comstar's new facility in Mexico likely to supply EV parts to Tesla in North America

April 22, 2024 / 02:41 PM IST

Sona Comstar's newly inaugurated facility in Fipasi Industrial Park, Silao, Mexico.

Sona BLW Precision Forgings Ltd. (Sona Comstar), one of the leading auto component players in India, has established its new manufacturing plant in the Fipasi Industrial Park, Silao, Mexico. The Sunjay Kapur-led global provider of automotive technology solutions has announced that it will be making driveline solutions for Battery Electric Vehicles (BEVs) in North America.

It has been learnt from sources that Tesla Inc. will be one of the EV manufactures, among other OEMs, which is keen source certain parts and aggregates from Sona's Mexican facility. Sona Comstar, however, hasn't officially confirmed it since it has a Non-Disclosure Agreement (NDA) with the Elon Musk-led company.

It is to be mentioned that the Indian auto solutions player is one of the few players in the domestic auto component industry which supplies to US EV maker's global operations, including North America.

V. Vikram Verma, CEO of Driveline Business at Sona Comstar, said: " We aim to solidify our position as the preferred driveline solutions provider for automakers in North America by establishing our new manufacturing plant in Mexico. This expansion demonstrates our unwavering commitment to customer satisfaction and aligns with our long-term growth strategy to capitalize on the escalating EV demand." However, he didn't specify if the company has plans to supply to Tesla Inc.

As one of the largest manufacturers of differential assemblies for BEVs worldwide, Sona Comstar said it recognises the significance of North America as the largest end-market, contributing a substantial 40 percent to its revenue. The strategic location of the new plant in Mexico is poised to enhance its supply chain efficiency and responsiveness to customer demands in the region, it said.

Earlier this year, Sona Comstar had received certification under the auto Production Linked Incentive (PLI) scheme in its domestic market. The company had filed seven applications for different products under the PLI scheme, and it has received the certification for its first product, a hub wheel drive motor for electric two-wheelers, Sona Comstar said in a regulatory filing.

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