Sona BLW, a global automotive component and systems manufacturer, is in advanced talks with China’s number one electric vehicle maker, BYD. According to CNBCTV18, the talks between the two companies have been going on for the last couple of months. The report further reveals that Sona BLW may be looking to set up a manufacturing plant in China and establish a longterm partnership with the world’s largest electric vehicle producer.
Sona BLW is on the cusp of finalising a deal with BYD, which could lead to the company setting up a new manufacturing facility in China. This will help Sona BLW to supply essential components to BYD directly, keeping logistics, cost and supply chain in mind. This deal will further strengthen the company’s portfolio and its position in the competitive Chinese EV market, as it will be closer to its important clients and seek new opportunities.
Sona BLW is a major player in the EV components field globally, and 35% of its revenue comes from this field. The company already has manufacturing facilities in the North American market and supplies components to worldclass clients like Tesla and Stellantis.
With news of a potential partnership between Sona BLW and BYD trickling in, the former’s stock has shot up by 7%. The company is also one of the first to take the initiative to produce rare earth materials domestically in India. With China processing 90% of the world’s rare earth materials, the aim of Sona BLW is to establish a selfreliant EV supply chain in India. Apart from Sona BLW, companies like JSW Group and Vedanta Group have also expressed interest.
