The company thinks so because automakers are focusing more on producing cleaner cars. The company’s chairman has given this information to Reuters. Sanjay Kapoor said in a recent interview that Sona BLW produces drivetrain components like motors and gears.
He said the company would invest about $130 million over the next three years to boost its electrification. With carmakers investing billions of dollars to make EVs, auto parts suppliers are also shifting their business to new and cleaner technologies.
Simultaneously, auto parts manufacturers are moving away from gasoline-dependent supply chains. Sanjay Kapoor said that “all of our new investments will go towards electrification. EV components constitute the bulk of Sona BLW’s $2.4 billion order book over the next few years.”
For your information, let us tell you that Sona BLW started investing in EV parts in the year 2015 and mainly supplies to car manufacturers in North America, Europe and China. The company has partnered with global companies to manufacture electric motors.
In addition, the company is also working with Israel’s IRP on developing magnet-less motors to reduce reliance on short-supplied key raw materials. Kapoor said the initial bet on EVs globally has helped the company expand its manufacturing capacity in India.
He said that this has given the company a headstart in terms of cost and technology in the country. India wants to give a push for EVs to meet its climate and carbon reduction targets and PM Narendra Modi’s government is offering billions of dollars in incentives to companies to build clean cars and their components.
The central government aims to have 30% of the total car sales electric from today by 2030. Sanjay Kapoor said that “If you want to invest in electric vehicles, infrastructure and components (in India), you need to look at the big markets. We look at markets outside India and that knowledge we have here. Bring it back to India to promote development.”