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Samvardhana Motherson has taken a historic step to reshape its global footprint in the auto industry. An Indian auto components company has moved closer to the world’s biggest luxury car brands. Samvardhana Motherson International has entered the premium automotive supply chain of BMW, Mercedes, and Porsche. This step highlights India’s rising role in global manufacturing.
The Indian firm has agreed to buy Germany’s Nexans Autoelectric wiring harness business for about €207 million. This move positions Samvardhana Motherson as a key name in the luxury supply chain for brands such as BMW, Mercedes, and Porsche.
The wiring harness business is complex and vital. These systems connect all electrical and electronic parts of a vehicle. They are custom-made and remain in place for the life of a car model. For premium cars like the Porsche 911 or Mercedes S-Class, such parts require top-tier engineering. Samvardhana Motherson gains this expertise overnight.
Nexans Autoelectric has operated for nearly 60 years and runs 22 factories across 11 countries, employing about 13,000 workers, including more than 800 engineers. Half of Nexans’ revenue comes from premium German brands such as BMW, Mercedes-Benz, and groups such as VW, Audi, and Porsche.
Nomura has described this acquisition as a “premium gateway” to high-end vehicle markets. The brokerage says the deal gives Samvardhana Motherson access to customer relationships that many have tried but failed to build. The research house expects the deal to be earnings accretive from year one.
Motilal Oswal Financial Services has echoed this view and kept a strong Buy rating on Samvardhana Motherson shares. The firm sees the pricing of the Nexans deal as reasonable. Analysts note Nexans had revenue of around Rs. 6,741 crore in 2024. Profit margins are modest but improving.
Analysts point out that the acquisition bridges a gap in Samvardhana Motherson’s offerings. Until now, the firm led in wiring for heavy and commercial vehicles. Nexans adds deep expertise in passenger vehicle wiring. This gives the Indian company balanced products across vehicle types.
Industry watchers say the deal also spreads geographic exposure. Nexans earns a large share of revenue from Europe, North America, and the Middle East. This helps Samvardhana Motherson reduce reliance on any single region.
Long-term projections from brokers are optimistic. Motilal Oswal sees total sales rising to over Rs. 1.5 lakh crore by 2028. Net profits could nearly double in the same period. The firm says this growth reflects synergies from combining the companies and stronger customer access.
The wiring harness business earns steady income because automakers rarely change harness designs once chosen for a model. This stability makes the segment attractive and adds predictability to future earnings.
Completion of the purchase is expected in the first quarter of FY27, subject to approvals. Both Nomura and Motilal Oswal stress that this deal strengthens Samvardhana Motherson’s global leadership in auto components.
This push into the luxury supply chain marks a pivotal moment for the Indian auto giant. With ties to BMW, Mercedes, and Porsche now deeper than ever, Samvardhana Motherson stands poised for growth in premium vehicle components.
With deeper links to BMW, Mercedes, and Porsche, Samvardhana Motherson now stands among the most important names in global auto components. The deal reflects India’s growing role in the premium automotive supply chain.
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