Sona Comstar to Launch Domestic Magnet Production Amid China Export Curbs
Sona Comstar, India’s leading importer of rare earth magnets and key supplier to EV giants like Tesla and Stellantis, has announced plans to begin local manufacturing of magnets in response to China’s recent export restrictions. With China producing nearly 90% of the world’s rare earth magnets and tightening control on exports, Sona Comstar aims to reduce dependency by tapping into India’s fifth-largest reserves of rare earths. The move aligns with the Indian government’s upcoming incentive program to boost domestic production of these critical EV components.
CEO Vivek Vikram Singh emphasized the company’s readiness to invest in local production once government policies are finalized. He cited Sona Comstar’s five-fold revenue growth to over $400 million in the past five years and confirmed the firm’s capacity to fund domestic manufacturing. In the last financial year alone, the company imported 120 metric tonnes of magnets from China and expects that number to rise to 200 tonnes this year, as demand from EV clients grows.
Despite the recent passing of Chairman Sunjay Kapur, Singh assured that the company’s trajectory remains intact under its strong executive leadership. With new markets in Japan, China, and South Korea under consideration, and the diversification into railway components following the acquisition of Escorts Kubota’s railways business, Sona Comstar is poised to shift its revenue base more towards India while expanding its global footprint.
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