Global automotive supplier
Motherson Sumi Systems Ltd. (MSSL) through its subsidiary Samvardhana Motherson
Automotive Systems Group BV (SMRPBV) has received a massive order worth Rs
15,400 crore from Daimler for their Mercedes-Benz vehicles. The order is supply
of a range of exterior and interior systems for several future Mercedes-Benz
vehicle generations. MSSL estimates these orders to generate sales revenues of
approximately Rs 15400 crores (Euro 2.2 billion approx.) over its
lifetime and expected to commence from calendar year 2018. According to a press
release, in order to support Daimler’s expansion activities, MSSL will invest
in 2 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
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, Brazil 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.
Vivek Chaand Sehgal, Chairman
(MSSL) said “We can’t give any specific details about these orders. But 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’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.
Samvardhana Motherson Group
received the Daimler Supplier Award 2014 award in the category 'Partnership' in
February 2015. Motherson was honored as “a reliable partner who supports
Mercedes-Benz's global growth by investment in capacity expansion and new
plants”. The award was received by V.C. Sehgal from Dr. Dieter Zetsche,
Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz
Cars and from Dr. Klaus Zehender, Divisional Board Member Procurement and
Supplier Quality Mercedes-Benz Cars during an event at the Daimler Headquarters
in Stuttgart, Germany.
With the award Daimler honours
above-average performance of suppliers and excellent cooperation once a year. Motherson’s
vision and endeavour to be ‘a preferred solutions provider’ was acknowledged by
Daimler through this award.
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