Following Tata Group’s and Vedanta Group’s venture into semiconductors, India’s leading auto wiring harness manufacturer, Samvardhana Motherson Sumi Group is looking for a semiconductor partner.
According to The Economic Times, Laksh Vaaman Sehgal, vice chairman of Samvardhana Motherson, said the group has set up a 300-acre industrial park in Chennai and is looking to partner with those with semiconductors technology if they are also looking for an Indian partner.
The Samvardhana Motherson Sumi Group, primarily engaged in auto components manufacturing such as wiring harnesses, has listed entities such as Motherson Sumi Systems, a joint venture between India’s Motherson Group and Japan’s Sumitomo Wiring System.
The US$8.2 billion Motherson Sumi Systems recently demerged its Indian business into Motherson Sumi Wiring India, which has a market capitalization of US$2.56 billion after being listed for two days, according to Bloomberg’s equity data. Both listed entities are applicants and eligible for the Production Linked Incentive for advanced auto components announced in mid-March.
The Economic Times reported that Motherson Sumi Wiring India has a market share of 40-45% in the Indian wiring harness segment, ranked No. 1. According to Motherson Sumi Systems’ annual report for fiscal 2021 (April 2020 to March 2021), its largest customers include Mercedes-Benz Daimler, Audi, Volkswagen, Porsche, and BMW, which accounted for a combined 46.4% of Motherson Sumi’s annual revenue.
CNBC TV18 reported in February that Vivek Chaand Sehgal, chairman of Motherson Sumi Group, said that the chip shortage had been plaguing the auto sector and predicted that the situation would be back to at least at the pre-COVID level by October.
India’s demand for semiconductors is still growing rapidly. According to India’s Ministry of Commerce, the import of semiconductors has grown from US$9.14 billion in fiscal 2021 to US$10.75 billion in the first ten months of fiscal 2022. The Economic Times reported that India’s semiconductor market will reach US$63 billion in 2026, driven by demand from wireless communications, consumer electronics, and automobiles.
https://cio.economictimes.indiatimes.com/news/corporate-news/motherson-group-ready-to-make-chips-looks-for-a-global-partner/90556301
https://www.digitimes.com/news/a20220331VL200/ic-manufacturing-india.html
