US Automakers Shift Toward Hybrids While China Doubles Down on BEVs, Says Sona Comstar CFO

Global automakers are increasingly taking region-specific approaches to vehicle electrification, with manufacturers in the United States showing stronger interest in hybrid technologies while Chinese automakers continue prioritizing battery electric vehicles (BEVs), according to Sona Comstar Group Chief Financial Officer Rohit Nanda.

Speaking during an interaction on the company’s business outlook, Nanda said the global automotive industry is no longer following a single electrification pathway. Instead, original equipment manufacturers (OEMs) are adapting their product strategies to local consumer demand, infrastructure development and regulatory priorities.

“The direction of powertrain adoption increasingly depends on geography,” Nanda said, noting that hybrid vehicles are gaining momentum in North America, while China’s market remains heavily focused on fully electric mobility.

Regional Strategies Are Replacing a One-Size-Fits-All Approach

According to Nanda, global vehicle manufacturers are maintaining flexibility by investing in both hybrid and battery-electric technologies rather than committing exclusively to one solution.

He said many OEMs are balancing short-term market realities with long-term electrification goals by expanding product portfolios across multiple powertrain options.

Industry analysts note that this strategy allows manufacturers to respond more effectively to varying consumer preferences, charging infrastructure availability and emissions regulations in different regions.

North America Continues to Drive Business

North America remains Sona Comstar’s largest international market.

For the first quarter of FY27, the region contributed:

• 26% of total company revenue

During the same quarter, the company secured a ₹640 crore hybrid differential assembly program from a North American passenger vehicle manufacturer.

Production for the program is expected to begin during the second half of FY29, reflecting continued demand for hybrid vehicle components in the region.

India Remains the Largest Overall Market

Sona Comstar’s revenue mix for Q1 FY27 highlights the company’s diversified global presence.

Revenue Contribution by Region

The geographical distribution demonstrates the company’s broad customer base across established and emerging automotive markets.

EV Business Continues to Expand

While hybrids are becoming increasingly important in certain markets, Sona Comstar’s electric vehicle business continued to post strong growth.

During Q1 FY27:

• BEV revenue reached ₹435.5 crore
• Revenue more than doubled compared with the same period last year
• EV-related business accounted for 44% of automotive product revenue

The company also expanded its customer programs significantly.

At the end of the quarter, Sona Comstar was involved in:

• 69 electric vehicle programs
• Across 36 automotive customers

The figures underscore continued global investment in battery-electric platforms despite regional differences in adoption rates.

Order Book Reflects Multiple Technologies

Sona Comstar’s order pipeline suggests that manufacturers are investing across several propulsion technologies rather than concentrating on a single solution.

The company’s ₹24,000 crore order book at the end of Q1 FY27 included:

EV Programs

• ₹15,400 crore
• Represents 64% of the total automotive order book

Non-EV Programs

• ₹6,600 crore
• Represents 28% of automotive orders

The remaining portion includes other business segments and programs outside these categories.

The mix illustrates that while electric mobility remains a major growth driver, demand for components supporting conventional and hybrid powertrains continues to generate substantial business opportunities.

Industry Outlook

Automotive markets worldwide are progressing toward lower-emission mobility, but the pace and preferred technologies differ significantly by region.

Several factors continue to influence manufacturer strategies, including:

• Consumer purchasing behavior
• Charging infrastructure availability
• Fuel prices
• Government incentives
• Emissions regulations
• Supply chain considerations

As a result, many automakers are maintaining diversified product portfolios that include internal combustion engines, hybrids, plug-in hybrids and fully electric vehicles.

What It Means for the Auto Component Industry

For suppliers such as Sona Comstar, supporting multiple propulsion technologies provides greater resilience against changing market conditions.

Instead of relying on a single technology transition, component manufacturers are increasingly developing products that can serve hybrid, electric and conventional vehicle platforms simultaneously.

This diversified approach may help suppliers adapt more effectively as global automotive markets continue evolving at different speeds.