Auto parts cos grow abroad, following Motherson model

Companies scout for global opportunities in forgings, castings, interiors and electronics

- Ayaan Kartik

Auto parts companies are deploying cash strategically to enter new geographies and strengthen local play in the US, Europe, Asia and Latin America.

(BLOOMBERG)

India’s top automobile component makers are borrowing from market leader Samvardhana Motherson International Ltd’s playbook to pursue global expansion as they face headwinds in their two largest export markets—the US and Europe.

Tata AutoComp has acquired companies in Europe and Latin America, while Sona Comstar has entered China with a partnership, targeting its electric vehicle market. Anand Group bought a Swiss firm, while Minda Corp. has struck joint ventures in Taiwan, China and Japan.

This follows co-founder Vivek Chaand Sehgal’s Motherson’s approach, which has built a presence across more than 40 countries through acquisitions and joint ventures. Its revenue has also more than doubled from $10 billion in fiscal year 2020 (FY20) to $25 billion in FY25, making it the country’s largest component player.