Rane (Madras) has expanded its world footprint with the organising of a greenfield facility in Mexico for manufacturing steering and suspension components for passenger car to develop its share of worldwide revenues.
The main producer of steering and suspension merchandise and light-weight metallic casting components stated in a regulatory submitting that it has floated a wholly-owned subsidiary ‘Rane Automotive Components Mexico’ (RACM) in Aguascalientes, Mexico, through which it should make investments $3-6 million over the following 12-18 months.
RACM has a bagged maiden order for provide of interior and outer ball joints to a number one automotive tier-1 for an upcoming electrical car platform of a number one American authentic gear producer. The program is slated for launch in 2025 with a peak annual gross sales worth of ₹80 crore.
Till not too long ago, Rane Madras was supplying interior and outer ball joints from its Indian services.
RACM chosen Aguascalientes due to its strategic location within the coronary heart of Mexico. Besides, it’s residence to massive OEMs similar to Nissan and several other prime tier-1 automotive suppliers.
The new facility will handle the big and rising marketplace for interior 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),” stated 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 stated.
