Rane (Madras) Limited (RML), a leading manufacturer specialising in steering and suspension products along with light metal casting components, is making a significant stride in global expansion. The company's wholly-owned subsidiary, Rane Automotive Components Mexico (RACM), has inaugurated a greenfield facility in Aguascalientes, Mexico, marking Rane's foray into international manufacturing for steering and suspension components dedicated to passenger vehicle applications.
The maiden venture for this state-of-the-art facility involves a substantial order for inner and outer ball joints. These components are set to be supplied to a leading automotive tier-1 company, supporting an upcoming electric vehicle platform for a renowned American OEM. The programme is slated for launch in 2025, with an anticipated peak annual sales value of INR 80 crore.
Aguascalientes was strategically chosen as the location for this facility due to its central position in Mexico and its significance in the Bajio region. This region is home to major OEMs like Nissan and various top-tier automotive suppliers. The new facility aims to cater to the burgeoning market for inner and outer ball joints in North America. While the company currently supplies these components from its Indian facilities to global destinations, including Mexico, China, and Central Europe, the new Mexican subsidiary strengthens the company's regional presence.
The initial investment for this endeavour is $3 million, expected to increase to double within the next 12 to 18 months. RACM is actively engaging in discussions for opportunities worth INR 250 crore targeting North American markets, collaborating with various OEMs such as Ford, GM, and Honda.
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 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.' The move signifies Rane's strategic approach to meet global demands and capitalise on emerging trends in the automotive sector.
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