- 13 Dec 2024
- ICICI Securities
SONA BLW PRECISION FORGINGS LOOKS TO EXPAND IN EAST ASIAN MARKETS
News: According to media sources, Sona Comstar, a leading Indian auto component manufacturer and supplier to major companies like Ford and Stellantis, is actively pursuing growth opportunities in East Asian markets, specifically targeting carmakers in China, Japan, and South Korea. This strategic expansion aims to diversify its market presence beyond its primary focus on North America and Europe.
Views: Currently, 66% of the company's revenues come from North America and Europe, while 28% is generated in India. The company anticipates that within five years, more than half of its revenues will originate from these Eastern markets. As per the management, light vehicle sales in North America and Europe are projected to decline to 34 million units this year, down from 37 million in 2015. Meanwhile, China's electric vehicle market is thriving, with sales of EVs, plug-in hybrids, and extended-range vehicles increasing by 50% in 2024, representing over half of the 20 million cars sold in the country this year. With healthy orderbook and diversification efforts, the company is poised for a robust growth journey going forward.
Impact: Positive