Motherson Sumi to set up plants in US, Hungary for new Daimler business

Global automotive supplier Motherson Sumi Systems Ltd (MSSL), through its subsidiary Samvardhana Motherson Automotive Systems Group BV (SMRPBV), has received a significant set of orders for the supply of a range of exterior and interior systems for several future Mercedes-Benz vehicle generations. MSSL estimates these orders, expected to commence from CY2018, to generate sales revenues of around Rs 15,400 crore (Euro 2.2 billion) over its lifetime.

To support Daimler’s expansion activities, MSSL will invest in two new plants – one each in the USA and Hungary – which will enable SMRP BV to be closer to Daimler’s vehicle assembly plants, along with capacity expansion in existing plants in Germany as well as new machines, tools and product development efforts.

In Hungary, the plant will be located near Daimler’s operations in Kecskemet and in the USA, the new facility will come up in the region around Tuscaloosa, close to Daimler’s assembly plant, thereby helping Samvardhana Motherson Peguform (SMP) enter the strategic growth market of the USA.  

The component supplies will be all from SMP, which is a technology and market leader for bumpers, door panels and cockpits with a strong footprint in Europe, Mexico, Brasil and China. It is a major supplier to car manufacturers in Europe, especially the German carmakers.

Commenting on the new business, Vivek Chaand Sehgal, chairman, MSSL, said: “While we can’t give any specific details about these orders, we can state that the preparatory work for the establishment of the two new plants has already begun. We are eager to start producing products matching Motherson’s global quality in these two plants.”

Motherson has a good connect with Daimler. In 1997, Group began supplies of cockpits and wire harnesses to Daimler in India.  Subsequently, in line with Daimler’s global expansion programme, Motherson says it invested significantly in expansion of capacities and modernisation mainly in Germany, Hungary, China, the Czech Republic and Slovakia. Among the products it supplies to the German major include exterior mirrors, door panels, bumpers, water deflectors, exterior and interior trim parts and other products.

In February 2015 this year, the Samvardhana Motherson Group received the Daimler Supplier Award 2014 award in the category 'Partnership' for being “a reliable partner who supports Mercedes-Benz's global growth by investment in capacity expansion and new plants”.