Samvardhana Motherson Automotive Systems Group (SMRPBV) has announced the acquisition of a majority stake in China’s Nanchang JMCG Mekra Lang Vehicle Mirror by Ningbo SMR Huaxiang Automotive Mirrors (SMR NBHX), a 50:50 joint venture in China under its subsidiary Samvardhana Motherson Reflectec (SMR).
With this transaction, SMR NBHX will acquire 60 percent stake in the Nanchang JMCG Mekra Lang Vehicle Mirror. The proposed deal is expected to be completed within three months from the date of signing, subject to necessary approvals. JMCG (Jiangling Motors Corporation Group) will continue to retain its 40% stake in Nanchang JMCG Mekra Lang Vehicle Mirror.
Nanchang JMCG Mekra Lang Vehicle Mirror is engaged in the manufacturing of automotive mirrors for passenger vehicles, pick-up trucks, and light and heavy commercial vehicles in China. The company was established in 2006 with a manufacturing facility at Nanchang (Jiangxi, China) and reported a turnover of CNY 131 million (Rs 140 crore) in CY2020.
SMR NBHX is an existing key supplier of vision systems to the passenger car OEMs in China. With this acquisition, Samvardhana Motherson group will expand its portfolio into commercial vehicle segment as well thus opening new opportunities for growth in this region. The additional manufacturing facility will further strengthen its existing footprint to 6 facilities across China and provide extra capacity in the region for future growth.
Vivek Chaand Sehgal, chairman, Motherson said, “This acquisition is of strategic importance to us. We see a lot of synergies in the products and processes of both companies. This acquisition will further strengthen Motherson’s presence in this large and growing market and provides access to new customers and vehicle segments; bringing more opportunities for future growth and expansion.”