Sundram Fasteners (SF), a Chennai-based company, announced it had won the largest EV contract in its 60-year history. The contract was for $250 million from a global auto manufacturer to supply sub-assemblies of its electric vehicle platform.
To support new orders, it will invest Rs 200 crore under the six-year-long purchase plan that includes the supply of input and stator shaft sub-assemblies as well as drive gear sub-assemblies.
The parts will be shipped from the company’s powertrain divisions in Mahindra World City, Chennai, and Sri City, Tirupati district. These parts will then be serviced at its North American warehouse. SF projects a peak annual sales of $ 52 million in 2026, and a supply of 1.5 million transmission sub-assemblies annually.
Arathi Krishna (Managing Director of SF) stated, “The $250 million supply contract, which is one of the largest in India,” and that it was further testimony to our commitment to manufacturing and supplying high-quality, industry-leading products like sub-assemblies. These are widely used in different segments of the EV market.”
These sub-assemblies are used in EV models such as MHEV/PHEV/BEV and will cover various segments including sedans, SUVs, trucks, and mid-size trucks. In 2024, the North American platform will see the launch of new vehicles.
Krishna said, “The win underlines the trust and confidence that we have been shown by our clients in India as well as globally. It will encourage global expansion as we work on our future strategic roadmap.”