Motherson Sumi bags a mega order from Daimler for supplying components for Mercedes-Benz

Auto component supplier Motherson Sumi Systems Ltd (MSSL), through its subsidiary Samvardhana Motherson Automotive Systems Group BV (SMRPBV), has received a significant set of orders from Germany’s Daimler for the supply of a range of exterior and interior systems for several future Mercedes-Benz vehicle generations. Motherson Sumi estimates these orders to generate sales revenues of approximately Rs 15,400 crores (Euro 2.2 billion approximately) over its lifetime and expected to commence from calendar year 2018.
 
To support Daimler’s expansion activities, Motherson Sumi will invest in two new plants, one each in the USA and Hungary which will enable SMRPBV 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.
 
All of the mentioned activities are concerning operations of SMRPBV‘s division SMP (Samvardhana Motherson Peguform), which was acquired in 2011. SMP is a technology and market leader for bumpers, door panels and cockpits with strong footprint in Europe, Mexico, Brasil and China. It is a major supplier to car manufacturers in Europe, especially the German car makers. SMP’s new plant in Hungary will be located close to Daimler’s operations in Kecskemet. With the establishment of the new plant in the region around Tuscaloosa, close to Daimler’s assembly plant, SMP enters an important strategic growth market - USA which had been a ‘white spot’ for SMP so far.
 
“While we cannot 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,” said Vivek Chaand Sehgal, Chairman, Motherson Sumi Systems.
 
Motherson’s relationship with Daimler dates back to 1997 when the Group started to supply cockpits and wire harnesses to Daimler in India. 
 
Motherson has invested significantly in expansion of capacities, modernisation and geographic footprint mainly in Germany, Hungary, China, Czech Republic and Slovakia to support Daimler’s global expansion. Products supplied to Daimler by Motherson today include exterior mirrors, door panels, bumpers, water deflectors, exterior and interior trim parts and other products. Motherson’s revenues with Daimler has increased an impressive 20-fold in the same period.