RACL Geartech Limited Updates BMW EV Project, Exports and CapEx

RACL Geartech Advances BMW Electric Sports Car Program

In an investor update, RACL Geartech Limited said its BMW electric sports car project, known as Project Venus, has received Level 1 approval on global platforms, with pilot sea shipments already underway. A BMW team is scheduled to visit RACL’s plant on October 24, 2026, for final sign-off. Once that approval is completed, full commercial supplies are expected to begin. The development represents a significant progression for the program and establishes a defined path from pilot shipments toward regular commercial production for the global automotive customer.

Global Customer Programs Show Recovery and Expansion

Export activity is also strengthening, with KTM rebounding toward near pre-COVID volumes and preparing to launch Model Year 2027 platforms from September 2026. The new Duke 790 is among the platforms, with RACL supplying complete kinematics. For ZF, RACL is supplying transmission gears for the BMW X5 SUV at 50% to 60% capacity utilization, while peak volumes are now targeted for 2030. Separately, development of an electric power steering program for an American OEM through ZF remains on track, with commercial supplies expected to begin between late 2027 and mid-2028.

Domestic Transmission Gear Supply Continues

In the domestic market, RACL supplies loose transmission gears for Royal Enfield’s 350cc platform. Current deliveries are running at approximately 7,500 to 8,000 sets per month against a 10,000-set nomination. The company is also developing multiple variants for the platform, supporting the continuation and potential expansion of its domestic transmission business. The combination of established monthly deliveries and ongoing variant development provides RACL with a continuing opportunity to deepen its participation in the motorcycle transmission supply chain while serving an established production platform.

FY 2027 CapEx Targets Heat Treatment and Capacity Expansion

To support its operating requirements and future programs, RACL has allocated INR 774 million in CapEx for FY 2027, ending in March. Of this amount, INR 400 million is earmarked to replace the company’s 30-year-old heat treatment plant with electric furnaces. The remaining investment will be directed toward fresh plant capacity expansion. The planned equipment replacement is intended to modernize a long-standing manufacturing asset, while the additional capacity investment is designed to support the company’s expanding program requirements across its domestic and international customer base.

Frequently Asked Questions

What are the key developments in RACL Geartech’s 2026 investor update?
RACL Geartech’s 2026 investor update highlights progress across global automotive programs, including Level 1 approval for BMW’s Project Venus electric sports car program and pilot sea shipments ahead of final sign-off. The company also reported KTM’s recovery toward near pre-COVID export volumes and the launch of Model Year 2027 platforms, including the Duke 790. Its ZF program for BMW X5 transmission gears is operating at 50% to 60% capacity utilization, while an electric power steering program remains on schedule. Domestically, Royal Enfield transmission gear deliveries continue alongside planned manufacturing investment.