Rane Opens New Facility In Aguascalientes, Mexico For Steering Components

The global footprint of Rane, a manufacturer of light metal casting components and steering and suspension products, has been expanded through the opening of a greenfield facility in Aguascalientes, Mexico, to manufacture steering and suspension components for passenger vehicle applications through its wholly-owned subsidiary, Rane Automotive Components Mexico (RACM). Rane a Rane expands its global footprint by manufacturing light metal casting components and steering and suspension products.

The first business for this facility is an order to supply inner and outer ball joints to an automotive tier-1 for an upcoming electric vehicle platform of a leading American OEM. The programme is slated to launch in 2025, with a peak annual sales value of INR 80 crore.

The company selected Aguascalientes because of its prime location in the heart of Mexico. Large OEMs like Nissan and numerous Tier-1 automotive suppliers call Aguascalientes, one of the five states that comprise the Bajio region in Central Mexico, home.

The new facility will serve the sizable and expanding North American market for inner and outer ball joints. RML exports inner and outer ball joints from its Indian manufacturing facilities to Mexico, China and Central Europe.

There will be an initial investment of USD 3 million going up to USD 6 million in the Mexican subsidiary over the next 12 to 18 months. RACM has a further INR 250 crore of opportunities under discussion for the North American market for vehicle platforms from various OEMs like Ford, GM and Honda.

Harish Lakshman, Vice Chairman of Rane Group, said, "This new state-of-the-art facility will help us to address the demand for steering and suspension components in the North American region and position us to capitalise on the emerging trend of localization of parts by the customers in this region driven by the USMCA (United States-Mexico-Canada Agreement). With the footprint established in Mexico, RML is favourably positioned to further build on its current book of business in the North American Region.”