Auto parts supplier Modern Automotives on Wednesday said it has bagged a supply contract for 2.5 million units of differential pinion shafts for electric powertrain worth Rs 150 crore to German premier carmaker BMW AG.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The order, which is to be completed by 2034, would give a huge push to the company's ambition of becoming part of the global supply chain of the original equipment manufacturers (OEMs), Modern Automotive Ltd (MAL) said in a statement.

ALSO READ: US CPI Data for March: Release date, time, all you need to know 

With this export order in place, the company said it is now aiming at increasing its export order book to 25 per cent by 2025 against 5 per cent at present.

In vehicles, the differential is the main part which transmits the movement coming from the engine to the wheels. On a smooth road, the movement comes to both wheels evenly.

"Developing pinion shaft matching for BMW is a milestone for the make-in-India campaign. This order is a reflection of the stringent quality that Modern Automotives offers. This also showcases the country's global standing in the auto components market," said Aditya Goyal, Managing Director, Modern Automotives.

In order to meet the exacting standard for the pinion shaft, the company said it developed a special patented coating process under collaboration with HEF France.

With a strategic co-development agreement with HEF Modern Automotives is well positioned to provide critical and sensitive parts to global auto majors, MAL stated.

According to the company, MAL was selected as Tier-1 and direct online supplier partner by Honda in 2010 and over the years has added other customers such as Yamaha, Hero, Musashi, TVS, BMW and Honda Cars, among others.

Catch the latest stock market updates here. For more news on sports, politics follow Zee Business