Sundram Fasteners bags USD 250 mn contract from global automaker

Auto components maker Sundram Fasteners Ltd on Tuesday said it has bagged a USD 250 million (nearly Rs 2,045 crore) contract from a leading global automobile manufacturer to supply sub-assemblies for the latters electric vehicle (EV) platform.

To support the new orders under a six-year long purchase package involving supply of input and stator shaft sub-assemblies and drive gear sub-assemblies the company plans to invest Rs 200 crore, Sundram Fasteners Ltd (SFL) said in a statement.

The company said it would ship parts from its powertrain divisions located at Mahindra World City in Tamil Nadu, and Sri City in Andhra Pradesh. The parts will be serviced from its warehouse in North America.

“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,” Sundram Fasteners Managing Director Arathi Krishna said.

Sundram Fasteners said the sub-assemblies will be used in the EV models such as mild hybrid, plug-in hybrid and battery EV, covering various segments, including mid-size trucks, SUVs and sedans.

“The launch of the new vehicles is planned from the North America platform in 2024,” it said, adding it has estimated an annual sales peak of USD 52 million in 2026 with a supply of 1.5 million transmission sub-assemblies per annum.

(Except for the headline, this story has not been edited by The Federal staff and is auto-published from a syndicated feed.)