New Delhi: Rane (Madras) Ltd, a leading manufacturer of steering and suspension products and light metal casting components, has established a greenfield facility for manufacturing steering and suspension components for passenger vehicle application through its wholly-owned subsidiary, Rane Automotive Components Mexico (RACM), in Aguascalientes, Mexico.
The first business for this facility is an order for supply of inner and outer ball joints to a leading automotive tier-1 for an upcoming electric vehicle platform of a leading American OEM. The program is slated for launch in 2025 with a peak annual sales value of INR 80 crore, the company said in a media release.
There will be an initial investment of USD 3 million going up to USD 6 million in the Mexican subsidiary over the next 12 to 18 months. RACM has a further INR 250-crore of opportunities under discussion for the North American market for vehicle platforms of various OEMs like Ford, GM and Honda.
The company selected Aguascalientes because of its strategic location in the heart of Mexico. One of the 5 states that make up the Bajio region in Central Mexico, Aguascalientes is home to large OEMs like Nissan and several top tier-1 automotive suppliers. The new facility will address the large and growing market for inner and outer ball joints in North American market. RML currently supplies inner and outer ball joints from its Indian facilities, to several global locations including Mexico, China and Central Europe, the release said.
Harish Lakshman, Vice Chairman, Rane Group, said, “The establishment of this greenfield facility is aligned to our aspiration of growing the share of international revenues. This new state-of-the-art facility will help us to address the demand for steering and suspension components in the North American region and position us to capitalise on the emerging trend of localization of parts by the customers in this region driven by USMCA (United States-Mexico-Canada Agreement). With the footprint established in Mexico, RML is favorably positioned to further build on its current book of business in the North American region.”