Sundram Fasteners (SF) announced that it has won the biggest EV contract in its 60-year history as the Chennai-based company received a $250 million contract from a global automobile manufacturer to supply sub-assemblies for its electric vehicle platform.
The company plans to invest INR 200 crore to support the new orders under the six-year-long purchase package involving the supply of input & stator shaft sub-assemblies and drive gear sub-assemblies.
The company will ship the parts from its powertrain divisions at Mahindra World City near Chennai and Sri City in Tirupati district, Andhra Pradesh. These parts will be serviced from its warehouse in North America. SF has estimated an annual sales peak of $52 million in 2026 with a supply of 1.5 million transmission sub-assemblies per annum.
Arathi Krishna, Managing Director, SF, said, “The $250-million supply contract, one of the largest in India, is further testimony to our commitment to manufacture and supply high-quality industry-leading products such as sub-assemblies, which are used widely in various segments of the EV sector.”
The sub-assemblies will be used in the EV models like MHEV/PHEV/BEV, covering various segments, including mid-size trucks, SUVs and sedans. The launch of the new vehicles is planned for the North America platform in 2024.
Krishna added, “The win underscores the trust and confidence reposed in us by our clients both in India and globally. Going forward, it will spur expansion of our global business as we continue to work on our strategic roadmap for the future.”
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