Parts maker Samvardhana Motherson to assemble cars

Samvardhana Motherson International Ltd plans to assemble full-fledged cars by 2030, as India's largest auto component maker aims to join the tiny club of global parts makers that have ventured into automobile manufacture.

- Ayaan Kartik

The assembly ambition is part of the Motherson Group's bid to raise its revenue to $108 billion by the end of this decade from around $25.7 billion in FY25, according to at least three brokerages that joined a management briefing last Friday.

The attempt by the Vivek Sehgal-led group to build cars for original equipment makers marks the third moonshot in India's auto component sector, after Sona Comstar and Bharat Forge forayed into robotics. The moves come at a time when the sector is facing multiple headwinds, including a slowdown in the western market.

"Over the past five decades, Motherson has progressed from component manufacturing to products, systems and integrated assemblies. The next logical step is full vehicle assembly by 2030, enabling access to the entire automotive supply chain," analysts at Nuvama said in a note dated 6 September.

Motherson reveals its longterm targets for investors via five-year plans. In 2020, it targeted reaching $36 billion in revenue by 2025.

It ended last year with $25.7 billion. Although the company missed its target, analysts noted that it needs to be considered in the context of global challenges.