In an interview with CNBC-TV18, Vivek Vikram Singh, Managing Director of the prominent auto components firm, stated that while the company previously focused its expansion on Western markets, the new phase will now encompass India, China, Japan, and Korea.
“The same strategy cannot be applied for the next decade due to changing circumstances. Geopolitics and market trends are evolving,” Singh emphasized, adding, “We completely overlooked the East while concentrating on the West… Thus, our new strategy will be to consider both directions.”
This strategic pivot will also emphasize significant product diversification. Singh highlighted that the company has experienced substantial growth over the past decade by introducing new products. “We were solely focused on one product a decade ago. Now, we offer a wide array,” he remarked. He noted that the largest growth opportunities came not merely from entering the EV market or expanding globally, but from diversifying product verticals.
Looking forward, Singh indicated that Sona Comstar aims to engage with emerging mobility technologies. “Besides EVs, we need to delve into other upcoming trends in the broader mobility sector—such as eVTOLs, humanoids, autonomous vehicles, and increasing software integration,” he stated.
However, the company is also facing immediate challenges. Singh acknowledged that China’s export restrictions on rare earths, effective from April 8, present a significant obstacle. “The rare earth situation is genuine. It persists. And until China alleviates this, the crisis will continue,” he remarked. Approximately 7-8% of Sona Comstar’s revenue is derived from traction motors, which are directly impacted by the shortage.
Singh cautioned about potential ripple effects beyond direct exposure. “For instance, if we supply a part without rare earth magnets to a company in India, and that company requires a magnet for another component, it may lead to production delays. That could have an indirect effect. However, estimating the impact at this stage is not feasible.”
Reflecting on the legacy of the late Chairman Sunjay Kapur, Singh noted, “Sunjay’s focus was often on timelines of 10 to 25 years. That’s what set him apart.” He added that the newly appointed Chairman, Jeffrey Mark Overly, shares a similar long-term vision, aiding in the continuity at the executive level.
Watch the accompanying video for the full conversation.
