Sundram Fasteners wins $250 mn international contract to supply EV parts

Company will invest Rs 200 cr support order it says is the largest for an Indian firm in the product range

Sundram Fasteners, which serves original equipment manufacturers (OEMs) and automakers, said on Tuesday it had won a $250-million contract by an international company to supply sub-assemblies for an electric vehicle (EV) platform.

The deal is one of the largest won by an Indian supplier for this range of products of an EV platform, said Sundram Fasteners Ltd (SFL). The company plans to invest Rs 200 crore to support the new order under a six-year long purchase package, involving  shaft sub-assemblies and drive gear sub-assemblies .   . The international company’s name was not disclosed.

The company said it will ship the parts from its powertrain divisions in Mahindra World City in Chengalpattu, Tamil Nadu, and Sri City in Tirupati district of Andhra Pradesh. The parts will be serviced from the company’s warehouse in North America. Sundram Fasteners has estimated an annual sales peak of $52 million in 2026 with a supply of 1.5 million  drive unit sub-assemblies per annum.    .

“We are extremely delighted to win this prestigious award that marks a significant milestone in our Company’s history. 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,” said Arathi Krishna, managing director, Sundram Fasteners.

The sub-assemblies will be used in the EV models like mild hybrid electric vehicle (MHEV), plug-in hybrid electric vehicle (PHEV), battery electric vehicles (BEV), covering various segments including mid-size trucks, sport utility vehicles (SUVs) and sedans.

“The Company’s vast experience in manufacturing intricate products involving complex engineering will be aligned with the specific requirements of new customers under the contract and help them achieve superior performance parameters,” it said in a statement.