The initial investment for the Mexican subsidiary is projected to be USD 3 million, with an expected increase to USD 6 million over the next 12 to 18 months.
26 Jan 2024 | 3281 Views | By Autocar Professional Bureau
Rane Madras, a manufacturer specialising in steering and suspension products, along with light metal casting components, has inaugurated a greenfield facility in Aguascalientes, Mexico. This strategic move, facilitated by its wholly-owned subsidiary, Rane Automotive Components Mexico (RACM), marks the company's foray into global markets. The facility will focus on manufacturing ...
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Rane Madras, a manufacturer specialising in steering and suspension products, along with light metal casting components, has inaugurated a greenfield facility in Aguascalientes, Mexico. This strategic move, facilitated by its wholly-owned subsidiary, Rane Automotive Components Mexico (RACM), marks the company's foray into global markets. The facility will focus on manufacturing steering and suspension components for passenger vehicle applications.
The inaugural project for this facility involves an order to supply inner and outer ball joints for an upcoming electric vehicle platform by a leading American OEM. The program, scheduled for launch in 2025, is anticipated to achieve a peak annual sales value of Rs 80 crores.
Aguascalientes was chosen as the location for this new facility due to its strategic positioning in the heart of Mexico, specifically within the Bajio region. This region is home to major OEMs such as Nissan and various top-tier automotive suppliers. RML's decision to establish a presence here aligns with its objective to cater to the substantial and expanding market demand for inner and outer ball joints in North America. Currently, RML supplies these components from its Indian facilities to various global destinations, including Mexico, China, and Central Europe.
The initial investment for the Mexican subsidiary is projected to be USD 3 million, with an expected increase to USD 6 million over the next 12 to 18 months. RACM is actively exploring opportunities totaling RS 250 crores for the North American market, targeting vehicle platforms of different OEMs, including Ford, GM, and Honda.
Harish Lakshman, Vice Chairman, Rane Group, speaking on the announcement 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 localisation 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.”