A series of major investments and partnerships across India's automotive and industrial sectors are set to strengthen domestic manufacturing capabilities in rare earth magnets, electrified powertrain systems and engine production, supporting efforts to reduce import dependence and reinforce the country's position as a global manufacturing hub.

N.A.N. MagneTech to establish India's first integrated rare earth magnet facility

N.A.N. GreenMet has announced plans to establish a fully integrated Neodymium-Iron-Boron (NdFeB) magnet manufacturing facility in Naidupeta, Andhra Pradesh, through its newly formed subsidiary, N.A.N. MagneTech.

The project involves a Phase I investment of approximately Rs. 12.5 billion (US$ 129.4 million) and is expected to become India's first fully integrated rare earth magnet manufacturing facility. Initial production capacity will be 1,200 tonnes per annum (TPA), with expansion planned to 10,000 TPA in later phases. Commercial operations are scheduled to begin in the first quarter of 2028. Upon reaching full Phase I production, the company expects annual revenue of Rs. 12 billion to Rs. 15 billion. The facility will integrate the entire production chain, including raw material processing, metal and alloy production, sintered magnet manufacturing and closed-loop recycling.

India currently imports nearly 95% of its rare earth magnet requirements, mainly from China. These magnets are essential for electric vehicle traction motors, wind turbine generators, defence systems, robotics and other advanced industrial applications. By establishing a domestic supply chain covering processing, production and recycling, N.A.N. MagneTech aims to reduce import dependence while supporting demand from India's electric mobility, renewable energy and defence sectors.

To support technology development, the company has partnered with Japanese technology providers and Dr. Masato Sagawa, inventor of the NdFeB magnet. To address raw material security amid supply concentration and price volatility, it has secured long-term supply agreements with an Australian producer for rare earth oxides, including heavy rare earth materials. The company has also secured off-take agreements with domestic automotive manufacturers and Tier-1 suppliers, providing visibility on future demand.

While the integrated model is intended to strengthen supply chain resilience and support import substitution, the project's success will depend on execution, commissioning progress, raw material availability and cost management in a highly specialised manufacturing environment.

Sona Comstar and DENSO establish two electrified powertrain joint ventures

Automotive technology company Sona Comstar has signed definitive agreements with Japan-based DENSO Corporation to establish two joint ventures in India focused on electric and hybrid powertrain systems across multiple vehicle segments.

The partnership combines DENSO's expertise in electrification, advanced engineering and research and development with Sona Comstar's engineering, manufacturing and market expertise. According to the companies, growing electrification across the global automotive industry is driving demand for advanced, reliable and cost-effective electric and hybrid powertrain systems. The proposed ventures, based in India, will develop products meeting global quality and performance standards.

Joint venture for four-wheelers and larger vehicles

The first joint venture will focus on electric and hybrid passenger vehicles, commercial vehicles and other high-voltage applications. Under a Joint Development Agreement, Sona Comstar and DENSO will develop high-efficiency liquid-cooled traction inverters, traction motors and generators.

To commercialise these products, the companies will establish a manufacturing joint venture in India. DENSO will hold a 51% stake and management control, while Sona Comstar will retain 49% and contribute engineering, manufacturing and supply chain expertise. The venture will manufacture high-voltage liquid-cooled traction inverters, traction motors and generators for electric and hybrid four-wheelers and larger vehicles.

"We have partnered with DENSO to bring together the complementary strengths of both companies and build advanced electric and hybrid powertrain solutions for four-wheelers and larger vehicle applications," said Vivek Vikram Singh, Managing Director and Group Chief Executive Officer of Sona Comstar.

Joint venture for two-wheelers and three-wheelers

The second joint venture will focus on electric and hybrid two- and three-wheelers. Sona Comstar will transfer its existing electric traction motor and controller business for these segments into a wholly owned subsidiary through a slump sale. Following the transfer, DENSO, directly or through affiliates, will acquire a 49% stake in the subsidiary at an enterprise value of Rs. 17.5 billion. Sona Comstar will retain a 51% stake and management control.

The joint venture will manufacture air-cooled traction inverters, traction motors, generators and e-Axles for electric and hybrid two- and three-wheelers. According to Sona Comstar, the partnership is intended to accelerate innovation, broaden product offerings and expand access to a wider customer base. Both companies will license intellectual property and technical know-how to their respective majority-owned joint ventures in exchange for royalty payments.

"The electrification of mobility represents a major transformation that will continue to evolve in response to the diverse needs of customers and society across the world. India, in particular, is an important region where diverse forms of mobility coexist and electrification is advancing at significant scale. Through this partnership, we will bring together the respective strengths that both companies have built over the years to provide electrification solutions that address the diverse needs of customers in India," said Tsuneo Maebara, Head of Powertrain Systems Business Group at DENSO.

The transactions remain subject to regulatory approvals and customary closing conditions.

TAFE Motors inaugurates DEUTZ engine production facility in Rajasthan

TAFE Motors and Tractors Limited (TMTL), a wholly owned subsidiary of Tractors and Farm Equipment Limited (TAFE), has inaugurated a DEUTZ engine production facility at its existing manufacturing plant in Alwar, Rajasthan. The project marks the first production and manufacturing collaboration between TAFE Motors and Germany-based DEUTZ, one of the world's oldest engine manufacturers.

Founded in Cologne in 1864, DEUTZ has evolved into a provider of mobility and energy solutions. Its products serve sectors including agriculture, construction, material handling, stationary power, logistics and defence. The facility was inaugurated by Rajasthan's Minister for Industry and Commerce, Rajyavardhan Singh Rathore.

Under the licensing agreement, TAFE Motors will manufacture DEUTZ-licensed 2.2-litre and 2.9-litre engines for domestic and international markets. The engines will be supplied to agriculture, logistics, industrial equipment and other off-highway sectors. The Alwar facility has annual production capacity of 35,000 fully assembled engines and 50,000 engine sub-assemblies.

The plant incorporates Industry 4.0-enabled manufacturing technologies, including Manufacturing Execution System integration, digital connectivity, advanced automation, robotics, cobots, vision systems, advanced engine testing facilities and quality laboratories with full digital traceability. Rajyavardhan Singh Rathore said the investment strengthens Rajasthan's position as a manufacturing destination and supports both the vision of "Made in Rajasthan for the World" and India's self-reliance goals. TAFE Chairman and Managing Director Mallika Srinivasan said the project represents a significant milestone in the company's growth strategy.

"Today marks a defining milestone in TAFE's growth journey. TAFE and the Amalgamations Group, together are one of India's largest engine manufacturing ecosystems, with a production capacity projected to expand from 400,000 to 550,000 engines annually by 2030."

She added that the collaboration combines German engineering expertise with Indian manufacturing capabilities and is expected to support Rajasthan's engineering and industrial ecosystem. TAFE Vice Chairman Dr. Lakshmi Venu said the facility reflects the company's commitment to advanced manufacturing, quality systems and capability development. Women account for 40% of the facility's workforce, supporting the company's workforce diversity initiatives.

TAFE Chief Executive Officer Sandeep Sinha said the plant demonstrates the company's ability to manufacture globally competitive products at scale for domestic and international markets. DEUTZ Chief Executive Officer Dr. Sebastian Schulte described the facility as an important milestone in the partnership, highlighting the collaboration that enabled the project to progress from concept to production.

The Alwar facility forms part of TAFE's broader expansion plans, with TAFE and the Amalgamations Group aiming to increase combined annual engine production capacity from 400,000 units to 550,000 units by 2030. Collectively, the investments by N.A.N. MagneTech, Sona Comstar, DENSO and TAFE highlight the growing localisation of critical automotive and industrial technologies in India, spanning rare earth magnet production, electrified powertrains and advanced engine manufacturing, while supporting the country's long-term ambitions in mobility, energy security and industrial development.