Sundram Fasteners wins $250 mn EV contract

CHENNAI: Sundram Fasteners, one of the largest suppliers to OEMs and automakers globally, has announced that it has won the biggest EV contract in its 60-year history.

The Chennai-based Sundram Fasteners Limited (SFL) has been awarded a $250-million contract by a leading global automobile manufacturer for the supply of sub-assemblies for its electric vehicle (EV) platform. The company plans to invest Rs 200 crore to support the new orders under the six-year-long purchase package involving the supply of input and shaft sub-assemblies and drive gear sub-assemblies.

SFL will ship the parts from its powertrain divisions located at Mahindra World City in Chengalpattu, TN and Sri City in Tirupati district, Andhra Pradesh. The parts will be serviced from the company’s warehouse in North America.

SFL has estimated an annual sales peak of $52 million in 2026 with a supply of 1.5 million transmission sub-assemblies per annum.

Arathi Krishna, MD, SFL, said, “The $250-million supply contract, one of the largest in India, is a further testimony to our commitment to manufacture and supply high-quality industry-leading products such as sub-assemblies, which are used widely in various segments of the EV sector. The win underscores the trust and confidence reposed in us by our clients both in India and globally. It will spur expansion of our global business as we continue to work on our strategic roadmap for the future.”

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.