Sona Comstar, India’s largest importer of rare earth magnets, is set to begin local production of these vital components for electric vehicles. This move aligns with the government’s push to boost domestic manufacturing amid China’s tightening restrictions on rare earth exports, aiming to reduce India’s dependence on imports and strengthen its EV supply chain.
Speaking to Reuters, Sona Comstar CEO Vivek Vikram Singh said, “Being the largest importer of rare earth magnets, we are the single largest affected party in the country. We have to look at India’s self-sufficiency on magnets and are working with the government on it.”
Pioneering domestic magnet production
Gurgaon-based Sona Comstar is spearheading efforts to produce magnets domestically, responding to China’s export restrictions imposed in April 2025 following U.S. tariffs. Sona BLW Precision Forgings aims to reduce reliance on China, which controls 90% of global rare earth magnet production. Singh emphasised the need for self-sufficiency as the company is supplying gears and motors to Tesla and Stellantis.
It imported 120 metric tonnes of magnets from China last year and planned to import 200 tonnes this year to meet EV demand, which accounts for a third of its revenue. India, with the world’s third-largest car market and fifth-largest rare earth reserves, is rolling out incentives to boost local magnet production, and Sona Comstar is the first to act, leveraging its $400 million revenue growth over five years to fund the initiative.
The CEO of Sona Comstar further explained that any plans to mine and process rare earths would take years to develop, so they will not provide an immediate solution to reducing reliance on China. The US currently accounts for about 40% of Sona Comstar’s revenue, ahead of India and Europe.
Strategic growth amid challenges
Following its recent acquisition of Escorts Kubota’s Indian railways business, Sona Comstar has expanded beyond the automotive sector and expects most of its revenue to come from India this year. Looking ahead, the company aims to grow by acquiring more customers in China, Japan, and South Korea. This growth plan comes in the wake of the sudden passing of Chairman Sunjay Kapur in June, which caused the company’s shares to dip amid concerns about its future direction. Jeffrey Mark Overly has since been appointed as the new chairman.
Despite these changes, Singh emphasised that the company’s strategy remains unchanged. He expressed confidence in the professional management team and the strong leadership bench strength, assuring that Sona Comstar is well-equipped to navigate challenges and continue its growth trajectory.
