Motherson partners ADIO for auto components manufacturing hub in Abu Dhabi; 1,000 jobs planned

Abu Dhabi is stepping up its ambitions to become a global automotive and advanced manufacturing hub, with the emirate-backed Abu Dhabi Investment Office (ADIO) partnering with V.C. Sehgal-led Samvardhana Motherson International Limited (SMIL) to establish a large-scale automotive component manufacturing facility in Khalifa Economic Zones Abu Dhabi (KEZAD).

The project, being developed on an approximately 87,652 square metre land parcel, is expected to create more than 1,000 jobs across engineering, technical, manufacturing and corporate functions as Abu Dhabi accelerates efforts to diversify its economy beyond hydrocarbons and strengthen industrial supply chains. Construction at the site has already commenced and the facility will be rolled out in phases.

UAE pushes manufacturing-led diversification

The facility will manufacture a range of automotive components for Motherson’s global operations as well as third-party Original Equipment Manufacturers (OEMs), positioning Abu Dhabi as a regional export and production base for the automotive sector. The project also aligns with the UAE’s broader industrialisation agenda, which has increasingly focused on attracting high-value manufacturing investments into sectors such as mobility, clean energy and advanced engineering.

In a statement, ADIO said the partnership underscores Abu Dhabi’s strategy of “enabling advanced manufacturing and strengthening high-value supply chains across priority industrial sectors,” while reinforcing the emirate’s competitiveness as a regional and global.

The manufacturing hub is expected to leverage Abu Dhabi’s logistics ecosystem, particularly connectivity offered through AD Ports Group, enabling faster access to markets across the Middle East, Africa, Europe and Asia. The project is also expected to support Emiratisation efforts by increasing the participation of UAE nationals in industrial and technical roles while contributing to knowledge transfer in advanced manufacturing.

Motherson expands global manufacturing footprint

For Motherson, one of India’s largest auto component suppliers with a global presence spanning multiple continents, the Abu Dhabi investment marks a strategic expansion into the Gulf manufacturing ecosystem at a time when global automotive supply chains are being reconfigured amid rising localisation and export diversification trends.

The development further strengthens KEZAD’s positioning as a preferred industrial base for multinational manufacturers seeking access to regional trade corridors and integrated port-led logistics infrastructure.