A global automaker has awarded Sundram Fasteners, an Indian manufacturer of auto components, a $250 million contract to supply parts for electric vehicles (EVs). This is the company’s largest EV contract to date.
The company, which has its headquarters in Chennai, will fulfill the new order by providing subassemblies for the global OEM’s electric vehicle platform.
Sundram Fasteners plans to invest 200 crores in its capacity to supply parts under the six-year purchase package that includes the supply of shaft sub-assemblies and drive gear sub-assemblies as a result of the new order.
The company’s powertrain units located in Mahindra World City and Sri City, both close to Chennai, will receive the proposed investment.
These two units will make and ship the components. 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. SFL has estimated an annual sales peak of $52 million in 2026 with a supply of 1.5 million drive unit sub-assemblies per year, according to a company statement.
“The $250-million supply contract, one of the largest in India, is a further testimony to our commitment to manufacture and supply products such as sub-assemblies, which are widely used in various segments of the EV sector,” said Arathi Krishna, Managing Director of Sundram Fasteners. The sub-assemblies will be used in mild hybrid electric vehicles, plug-in electric vehicles, and battery electric vehicles, covering various segments, including mid-size trucks, SUVs, and sedans. The launch of the new vehicles is planned for the North American platform in 2024.
