Auto parts maker Rane (Madras) Ltd (RML) is setting up a greenfield facility for manufacturing steering and suspension components for passenger vehicle applications in Aguascalientes, Mexico. Initially, the company will make an investment of $3 million and will increase it to $6 million over the next 12 to 18 months.

The development marks the company’s establishment of a global footprint and the new unit is being set up by its wholly-owned subsidiary—Rane Automotive Components Mexico (RACM).

“This new greenfield unit 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),” Harish Lakshman, Vice Chairman, Rane Group, said.

Also read: Maersk to introduce Chennai service linking Ennore, Colombo and ports in Middle East

The proposed facility has already bagged an order for the supply of inner and outer ball joints for an upcoming electric vehicle platform of a leading American OEM. The programme is slated for launch in 2025 with a peak annual sales value of ₹80 crore,” per a statement.

RACM has a further ₹250 crore of opportunities under discussion for the North American market for vehicle platforms of various OEMs like Ford, GM and Honda.

According to the company, it chose Aguascalientes due to its strategic location in the heart of Mexico. One of 5 states comprising 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 the North American market. RML currently supplies inner and outer ball joints from its Indian facilities to several global locations including Mexico, China and the Central Europe.

Related Topics
comment COMMENT NOW