Rane (Madras) has expanded its global footprint with the setting up of a greenfield facility in Mexico for manufacturing steering and suspension components for passenger vehicle to grow its share of international revenues.
The leading manufacturer of steering and suspension products and light metal casting components said in a regulatory filing that it has floated a wholly-owned subsidiary ‘Rane Automotive Components Mexico’ (RACM) in Aguascalientes, Mexico, in which it will invest $3-6 million over the next 12-18 months.
RACM has a bagged maiden 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 original equipment manufacturer. The program is slated for launch in 2025 with a peak annual sales value of ₹80 crore.
Till recently, Rane Madras was supplying inner and outer ball joints from its Indian facilities.
RACM selected Aguascalientes because of its strategic location in the heart of Mexico. Besides, it is home to large OEMs such as 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.
“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 localisation of parts by the customers in this region driven by USMCA (United States-Mexico-Canada Agreement),” said Rane group vice chairman Harish Lakshman.
“With the footprint established in Mexico, RML is favorably positioned to further build on its current book of business in the North American Region,” he said.
Source: www.thehindu.com
