Blackstone bankrolls new EV-focused platform

A new EV-focused, India-centric automotive technology platform has been launched by a triumvirate of global automotive players.

Called Sona Comstar, the platform has been developed following a partnership between in automotive drivetrain solutions company Sona BLW Precision Forging, private equity funds from Blackstone, and Comstar Automotive Technologies, Blackstone’s automotive company focused on global, electric charging and starting solutions.

Sunjay Kapur will be the chairman of the newly combined entity Sona Comstar.

He said, ‘I am delighted to partner with Blackstone and Comstar to create Sona Comstar. This transaction marks the amalgamation of mechanical and electrical capabilities of two world class companies. We will now offer our customers integrated technology products and solutions for hybrid, EV as well as conventional powertrains. With our EV focused automotive technology platform, we will cater to the future of the automotive industry. Sona Comstar will be amongst the largest auto component companies of the country.’

Amit Dixit, senior managing director and head of Blackstone India Private Equity, said, ‘The Indian automotive components space is attractive, both with India as a manufacturing hub for exports and as a domestic market. Sona has exceptional engineering capabilities, deep customer relationships, and a strong management team that has helped sustain its leadership position. The combination of Sona and Comstar is highly synergistic. There are opportunities to add on to this buy-and-build platform in this fragmented sector, especially in the current environment.’

This platform allows Sona to expand its geographical footprint to China, U.S., Mexico and South India, while Comstar gets access to North and West India and European markets. Sona and Comstar have almost no overlap in customers, enabling both companies to benefit from being able to offer their products to each other’s customers. The combined entity serves most major OEMs across passenger vehicles, commercial vehicles and off highway vehicles in USA, Europe, India and China.

The transaction also enabled the companies to combine their research and development efforts and create a joint technology roadmap and solutions. It has enabled the creation of an ‘Integrated Electric Drive Unit’to power the drivetrains of electric vehicles.

The technology brings together three different fields of engineering – materials, mechanical and electrical, to make products to power the future of mobility, which are ‘stronger, faster, lighter,’ also the tagline of the new company.