Motherson to cut costs amid global volatility

Samvardhana Motherson International Ltd said it will undertake proactive cost optimisation measures to improve operating efficiencies amid supply chain and regulatory uncertainties.

“The evolving and dynamic automotive production environment with increased complexity across the supply chain and regulatory uncertainties are driving global volatilities. To be prepared to operate in this evolving landscape and to breathe with the market, the company via its subsidiary SMRP BV, has proactively initiated a series of transformative measures in Central & Western Europe,” the Noida-based auto components manufacturer said in a statement.

The series of strategic measures would include various operational initiatives and active engagement and collaboration with the local workmen representative associations and will work on defining an optimisation plan for adjusting and recalibrating the workforce in respective countries, the company said in a statement.

The proposed transformative measures will be implemented in a phased manner and would be targeting optimisation of a cost block of around euro 50 million per annum once fully executed over the next three years, the statement said. The cost block under optimization includes various elements such as salary, benefits, overheads, cost of leased or contract employees etc.

The auto component maker said this “transformative effort” aims to address the changing supply chain landscape and implement necessary changes while ensuring uninterrupted customer supplies. The transformation will be carried out in compliance with all applicable regulatory norms, it said.

Over 80% of Samvardhana Motherson's revenue comes from its exports and international operations. The company’s primary line of business is in modules and polymer-based products, with additional contributions from wiring harnesses, vision systems, integrated assemblies, and its newer ventures. Motherson has completed 23 acquisitions since 2020 making substantial investments globally.

Reacting to the development, shares of Samvardhana Motherson rose 5.7% to hit a high of ₹119.60 on the BSE, taking the company’s market cap to around ₹83,345 crore. The stock has fallen 24% in 2025.