The chairman of Indian auto parts maker Sona BLW Precision Forgings told Indian auto parts maker Sona BLW Precision Forgings that it expects three more in the next few years as automakers scramble to build cleaner cars using electric vehicles (EVs). Two-thirds of revenue will grow components. Reuters.

Sunjay Kapur said in a recent interview that Sona BLW, which makes driveline components such as motors and gears, will invest about $130 million in electrification over the next three years. Auto parts suppliers are also diversifying their operations into new clean technologies and shifting their supply chains away from gasoline as automakers invest billions of dollars to build electric vehicles.

“All of our new investments will be in electrification,” Kapoor said, adding that the bulk of Sona’s $2.4 billion in orders over the next few years is for electric vehicle parts. Sona BLW started investing in EV components in 2015, mainly supplying automakers in North America, Europe and China.

It works with global companies to manufacture electric motors and with Israel’s IRP to develop non-magnetic electric motors to reduce reliance on critical raw materials that are in short supply. Kapur said earlier investments in global electric vehicles helped the company expand its manufacturing capacity in India, giving it a leadership position in the country in terms of cost and technology.

India wants to speed up its push for electric vehicles to meet its climate and carbon reduction goals, and PM Modi’s government is giving billions of dollars in incentives to companies that make clean cars and their parts.

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The government’s goal is to convert 30 per cent of total car sales to electric vehicles by 2030, from a fraction now. “If you want to invest in EVs, infrastructure and components (in India), you need to look at the bigger market. We look outside India and bring that knowledge back to India to drive growth here,” Kapur said.