Indian auto parts supplier Sona Comstar is actively seeking growth opportunities in the automotive markets of China, Japan, and South Korea, reported Reuters.
The company, which supplies components to global automakers including Ford and Stellantis, is in talks with carmakers in these regions to expand its reach beyond its established markets in North America and Europe.
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Sona Comstar Group CEO Vivek Vikram Singh highlighted that Sona Comstar is in “active discussions” with automakers in the east to supply components for electric vehicles (EVs), hybrid cars, and internal combustion engine (ICE) vehicles.
“Growth through market share gains alone is no longer enough,” the publication quoted Singh as saying.
Although the Eastern region, including India, accounts for nearly half of the global car market, Sona Comstar’s presence remains relatively small in this space.
Singh said light vehicle sales in North America and Europe are expected to decline to 34 million units this year, down from 37 million in 2015.
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By GlobalDataIn contrast, sales of EVs, plug-in hybrids, and extended-range vehicles in China have risen by 50% this year, making up more than half of the 20 million vehicles sold in the country.
With stagnating car sales in the US and Europe and slowing electrification plans from carmakers, Sona Comstar is looking to diversify its investments into mobility businesses beyond traditional automobiles and new technologies to fuel growth over the next decade.
While Singh did not disclose the specific carmakers involved in talks, he projected that revenues from Eastern markets would surpass 50% of the company’s total in five years, up from the current share of 28% from India and 66% from North America and Europe.
Singh added: “In the last nine years, we have grown over nine times by focusing on electrification, expanding our market share in North America and Europe and introducing new products.
“To multiply our current size ninefold again, we need new approaches.”
Sona Comstar, valued at over $4.7bn, is known for producing differential gears, which allow vehicle wheels to spin at different speeds, and starter motors for certain hybrid vehicles.
The company’s net order book stands at $2.7bn, with nearly 80% of it consisting of EV components.
