Sona Comstar Plans Domestic EV Magnet Production Amid China's Export Curbs

As global supply chains face growing uncertainty, Sona Comstar, India’s leading importer of rare earth magnets, has announced plans to manufacture these critical electric vehicle (EV) components domestically. The move comes in response to China’s recent restrictions on magnet exports and aligns with the Indian government’s upcoming incentive programme for local production.

India's Strategic Shift Away from Chinese Imports

China, which supplies nearly 90% of the world’s rare earth magnets, imposed export restrictions in April as part of its response to US tariffs. Though a bilateral agreement between the US and China aims to fast-track rare earth approvals, countries like India are actively seeking alternatives to reduce dependency. India holds the world’s third-largest car market and the fifth-largest rare earth reserves. To tap into this advantage, the government is working on a new scheme to promote domestic magnet manufacturing.

Sona BLW Precision Forgings, better known as Sona Comstar, is the first Indian company to publicly declare its intent to manufacture EV magnets locally. “Being the largest importer of rare earth magnets, we are the single largest affected party in the country. We have to look at India's self-sufficiency on magnets and are working with the government on it,” CEO Vivek Vikram Singh said to Reuters in an interview.

Business Impact, Investment Outlook and Global Expansion

Sona Comstar imported 120 metric tonnes of magnets from China last year and expects to import 200 tonnes this year to meet growing EV demand, which now accounts for about one-third of its revenue. The company plans to review the finalised incentive plan and assess other variables before committing investment, though it already has sufficient funding, having grown revenues over fivefold to $400 million in the past 5 years.

While rare earth mining and processing remains a long-term goal, the company’s current focus is on scaling magnet production and expanding its customer base across China, Japan, and South Korea. The US remains its largest market, contributing 40% of revenue, followed by India and Europe.

Following the recent passing of Chairman Sunjay Kapur in June, which briefly impacted share prices, Sona Comstar appointed Jeffrey Mark Overly as its new chairman. CEO Singh affirmed that the company’s direction remains unchanged, noting it is led by a professional executive team with strong management depth to handle disruption.

Also Read: Sona Comstar: Priya Sachdev Kapur Takes Board Seat After Husband Sunjay Kapur’s Demise!

Sona Comstar Share Price Performance 

As of July 1, 2025, at 12:50 PM, Sona Comstar share price is trading at ₹476.60 per share, reflecting a decline of 1.13% from the previous closing price. Over the past month, the stock has declined by approximately 11.09%. 

Conclusion

Sona Comstar’s decision to manufacture EV magnets in India marks a significant step toward reducing reliance on China and supporting the country’s vision for industrial self-reliance. Backed by robust leadership and strong financial growth, the company is well-positioned to lead India’s transition to a more secure and sustainable EV supply chain.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.