Sundram Fasteners wins over Rs 2000 crore EV parts contract, largest in its history | The Financial Express

Sundram Fasteners wins over Rs 2000 crore EV parts contract, largest in its history

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 from the North America platform in 2024.

Sundram Fasteners wins over Rs 2000 crore EV parts contract, largest in its history
Sundram Fasteners has estimated an annual sales peak of $52 million in 2026 with a supply of 1.5 million transmission sub-assemblies per annum. (File)

Sundram Fasteners announced that it has won the biggest EV contract in its 60-year history – a $250-million (Rs 2061.75 crore) contract by a leading global automobile manufacturer for the supply of sub-assemblies for its electric vehicle (EV) platform.

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 from the North America platform in 2024.

The Company plans to invest Rs 200 crore to support the new orders under the six-year long purchase package. The contract involves supply of input and stator shaft sub-assemblies and drive gear sub-assemblies.

Sundram Fasteners will ship the parts from its powertrain divisions located at Mahindra World City in Chengalpattu,Tamil Nadu, and Sri City in Tirupati district, Andhra Pradesh. The parts will be serviced from the Company’s warehouse in North America.

The deal is one of the largest won by a supplier in India for this range of products for an EV platform.

Sundram Fasteners has estimated an annual sales peak of $52 million (Rs 428.84 cr) in 2026 with a supply of 1.5 million transmission sub-assemblies per annum.

Arathi Krishna, Managing Director, Sundram Fasteners said, “The $250-million 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.”

SFL will use special processes such as axial forming technology in the manufacturing of the products, which can withstand extreme temperatures and rigorous durability tests, meets high torque requirements and operate in a silent environment.

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First published on: 17-01-2023 at 17:15 IST