Sona BLW Precision Forgings Limited, known as Sona Comstar, has signed definitive agreements with Japan's DENSO Corporation to form two joint ventures to develop, design, manufacture and market advanced electric and hybrid powertrain systems across multiple vehicle segments. The partners have entered a joint development agreement to develop high-efficiency liquid-cooled traction inverters, traction motors and generators for electric and hybrid passenger vehicles, commercial vehicles and other high-voltage applications. The agreement envisages commercial production in India for domestic and export markets. Under the manufacturing joint venture DENSO will hold 51 per cent equity and assume management control while Sona Comstar will hold 49 per cent and contribute engineering capabilities, manufacturing expertise and its established supply chain ecosystem. The arrangement is designed to combine DENSO's systems know-how with Sona Comstar's local engineering and production strengths. Parties plan to scale production for multiple vehicle categories including passenger and commercial segments. A second joint venture will be created after Sona Comstar transfers its existing electric traction motor and controller business for two-wheelers and three-wheelers into a wholly owned subsidiary by way of a slump sale. Subsequent to the transfer DENSO, directly or through affiliates, will acquire 49 per cent for an enterprise value of Rs 17.5 billion (Rs 17.5 bn), while Sona Comstar will retain 51 per cent and management control. That venture will focus on air-cooled traction inverters, traction motors and generators and e-Axles for electric and hybrid two-wheelers and three-wheelers. Both companies will license intellectual property and know-how to their respective majority-owned joint ventures in return for royalty payments to support technology transfer and localisation. Sona Comstar's managing director and group chief executive said the partnership would accelerate growth of its electric powertrain business for two-wheelers and three-wheelers by strengthening capabilities across the value chain and enabling it to serve a broader customer base. DENSO's head of powertrain systems business group indicated that the collaboration was intended to combine the firms' strengths to deliver electrification solutions suited to diverse mobility needs, and the transaction was advised by Deloitte India, Trilegal and KPMG India.