Delhi NCR-headquartered Sona Comstar, a leading tier 1 supplier has the most competitive advantage versus all other Indian rivals as per the latest ranking by the Nikkei group.
Interestingly, Sona Comstar received a score of 215 points, finished ahead of the Indian subsidiary of German supplier Bosch, which came in second place with 206 points.
Sona Comstar makes gears, motors and other powertrain components for both Internal Combustion Engine-powered vehicles as well as electric vehicles.
The competitive advantage scores, compiled by Nikkei Mobility is are based on sales, profit margin, capital expenditure, research and development, and market capitalisation. The study covered suppliers with headquarters in India.
India is now the world’s third-largest auto market, eclipsing Japan. After honing its competitive advantage in India, Sona Comstar has transformed into a world-class supplier that is expanding its overseas business profile.
Formally known as Sona BLW Precision Forgings, the company traces its roots to a joint venture between India’s Sona Group and Japan’s Mitsubishi Materials. In the 2022 financial year, Sona derived 43% of revenue from North America, outstripping the 29% from India.
American automotive majors General Motors (GM) and Ford Motor Co are among Sona’s biggest clients, according to automotive market intelligence provider Marklines.
JBM Auto which makes chassis, suspension and other components ranked no. 3. It also taps its battery manufacturing know-how to produce electric buses.
At fourth-place UNO Minda is a leading supplier for automotive lighting and switches. More than 80% of the revenue comes from India, but the company also has factories in Indonesia and Mexico, among other offshore locations.
The survey said that India’s auto parts makers are expected to face pressure to supply the EV industry. The Indian government aims to lift the ratio of new electrics sold to roughly 30% of all passenger vehicles in 2030. Right now, the ratio wallows at about 1%, and the government is using subsidies to stimulate EV sales.
