Sundram Fasteners secures the largest EV contract in its history.
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Sundram Fasteners secures the largest EV contract in its history.

Sundram Fasteners wins $250 million deal for EV sub-assemblies from leading global automaker; plans to invest Rs 200 crore to support new orders.

Sundram Fasteners (SFL), one of the largest suppliers to original equipment manufacturers (OEMs) and automakers worldwide, announced today that it has won the biggest electric vehicle (EV) contract in its 60-year history. The Chennai-based company has been awarded a $250-million contract by a leading global automobile manufacturer for the supply of sub-assemblies for its EV platform.

The contract, which is a six-year-long purchase package, involves the supply of shaft sub-assemblies and drive gear sub-assemblies. SFL plans to invest Rs 200 crore to support the new orders.

The company will ship the parts from its powertrain divisions located at Mahindra World City in Chengalpattu, Tamil Nadu, and Sri City in Tirupati district, Andhra Pradesh. 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. The company projects an annual peak of $52 million in 2026 with a supply of 1.5 million drive unit sub-assemblies per annum.

The sub-assemblies will be used in 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.

Sundram Fasteners will use axial forming technology in the production of products that can endure severe temperatures, pass durability tests, satisfy high torque needs, and function quietly. The company’s vast experience in producing intricate, complex engineered products will be tailored to meet the specific needs of new contract customers, resulting in improved performance outcomes.

Ms. Arathi Krishna, Managing Director, Sundram Fasteners Limited said, “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 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. Going forward, it will spur expansion of our global business as we continue to work on our strategic roadmap for the future.”

Also Read: Gogoro and Belrise partner to build Rs 20,000 crore battery swapping infrastructure in Maharashtra.

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