Rane Madras, a manufacturer specializing in steering, suspension products, and light metal casting components, has opened a new greenfield facility in Aguascalientes, Mexico. This strategic expansion, facilitated by its wholly-owned subsidiary, Rane Automotive Components Mexico (RACM), marks the company’s entry into global markets. The facility’s primary focus will be on producing steering and suspension components for passenger vehicles.
The inaugural project for this facility involves supplying inner and outer ball joints for an upcoming electric vehicle platform by a leading American OEM. Scheduled for launch in 2025, the program is expected to achieve a peak annual sales value of Rs 80 crores.
Aguascalientes was selected as the site for this new facility due to its strategic location in the heart of Mexico, particularly within the Bajio region, home to major OEMs like Nissan and top-tier automotive suppliers. RML’s decision to establish a presence here aligns with its goal to meet the substantial and growing market demand for inner and outer ball joints in North America. Currently, RML supplies these components from its Indian facilities to various global destinations, including Mexico, China, and Central Europe.
The initial investment for the Mexican subsidiary is estimated at USD 3 million, with an expected increase to USD 6 million over the next 12 to 18 months. RACM is actively exploring opportunities totaling RS 250 crores for the North American market, targeting vehicle platforms of different OEMs, including Ford, GM, and Honda.
Harish Lakshman, Vice Chairman of Rane Group, commented on the announcement, stating, “The establishment of this greenfield facility aligns with our goal of increasing international revenues. This new state-of-the-art facility will enable us to meet the demand for steering and suspension components in the North American region and position us to capitalize on the emerging trend of parts localization driven by the USMCA (United States-Mexico-Canada Agreement). With our footprint now established in Mexico, RML is well-positioned to expand on its current business in the North American Region.”