MSSL gets biggest ever order from Daimler

May 20, 2015

• Large orders for interior and exterior systems for various new Mercedes-Benz vehicle generations
• Decision to build 2 new factories – in USA and in Hungary
• Motherson receives Daimler Supplier Award 2014 in the ‘Partnership’ category

The 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 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.

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 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.

Mr. Vivek Chaand Sehgal, Chairman (MSSL) said “While 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

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 Mr. V.C. Sehgal, Chairman of Samvardhana Motherson Group, 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 impressive event at the Daimler Headquarters in Stuttgart, Germany.

With the award Daimler honors 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.