CHENNAI: Chennai-based auto components maker Rane Madras Limited (RML) opened a greenfield facility for manufacturing steering and suspension components for passenger vehicles in Mexico.
It is the company’s first plant abroad and it comes under a wholly-owned subsidiary Rane Automotive Components Mexico (RACM).
This facility will supply inner and outer ball joints to an automotive tier-1 supplier for an upcoming electric vehicle platform by US-based original equipment manufacturer, the company said on Friday. The company plans initial investment of up to $6 million in the Mexican subsidiary over the next 12 to 18 months.
It is currently under discussion for the North American market for vehicle platforms of various OEMs like Ford, GM and Honda, it said. The subsidiary has a potential for Rs 320 crore sales.
The plant is located in Aguascalientes in the heart of Central Mexico and has a significant presence of automobile manufacturers like Nissan. The new facility will meet growing demand in the North American market. RML currently supplies inner and outer ball joints from its Indian facilities, to several global locations including Mexico, China and Central Europe.
Harish Lakshman, Vice Chairman of the Rane Group said this greenfield facility will help the company grow its international revenues.