Indian automotive supplier Motherson reaches agreement to purchase global wiring harness operations for €207 million, expanding manufacturing presence across 22 facilities in 11 countries serving passenger and commercial vehicle markets.
22 Dec 2025 | 5314 Views | By Sarthak Mahajan
Samvardhana Motherson International Limited has entered into exclusive negotiations to acquire the entire wiring harness business of Nexans AutoElectric GmbH through its subsidiary Motherson Global Investments B.V. The transaction, valued at €207 million on a cash and debt-free basis, remains subject to employee consultation and regulatory approvals.
AutoElectric, a ...
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Samvardhana Motherson International Limited has entered into exclusive negotiations to acquire the entire wiring harness business of Nexans AutoElectric GmbH through its subsidiary Motherson Global Investments B.V. The transaction, valued at €207 million on a cash and debt-free basis, remains subject to employee consultation and regulatory approvals.
AutoElectric, a manufacturer with approximately 60 years of experience in automotive wiring harnesses, generated revenues of €749 million in 2024. The company's operations span both passenger vehicles, which comprised 81% of revenues, and commercial vehicles at 19%. Its product range includes low-voltage and high-voltage powertrain harnesses, body harnesses, specialty harnesses, and components designed for internal combustion engine, hybrid, and electric vehicle applications.
The acquisition encompasses multiple share purchase agreements for various subsidiaries and asset purchase agreements covering business assets and certain real estate holdings of Nexans AutoElectric GmbH and Elektrokontakt GmbH, along with their foreign subsidiary shares.
Geographic Footprint and Operations
AutoElectric's 22 manufacturing facilities span 11 countries with concentrated operations in key automotive markets. Europe and North Africa account for 74% of sales, the Americas represent 24%, and China contributes 2%. The company maintains manufacturing presence in Germany, Austria, Switzerland, Romania, Czech Republic, Slovakia, Ukraine, Tunisia, Mexico, the United States, and China, with particular strength in emerging markets.
The company employs over 13,000 workers globally, including more than 800 engineers who support its research and development capabilities. This engineering team is positioned close to premium automotive manufacturers, enabling rapid response to evolving regulatory, safety, and performance standards.
AutoElectric serves as a key supplier to major automotive original equipment manufacturers and Tier 1 suppliers. Its customer base includes BMW, Mercedes-Benz, Porsche, Audi, Volkswagen, Daimler Truck, and General Motors. The company specializes in both low-voltage applications for combustion engines and hybrid powertrains, as well as high-voltage cabling for hybrid and fully electric vehicles.
Product offerings include complete body harnesses containing more than 1,500 wires per vehicle, specialty harnesses for applications such as seats, doors and axles, and injection-molded components for ABS cabling and sensor cables. The company demonstrates high automation levels in engine harness production and extensive technical expertise in demanding wiring solutions.
AutoElectric has shown revenue stability with sales of €636 million in 2022, €752 million in 2023, and €749 million in 2024. EBITDA figures stood at €47.6 million in 2022, €40.2 million in 2023, and €47.9 million in 2024.
Strategic Rationale
Vivek Chaand Sehgal, Chairman of Motherson Group, stated that the acquisition represents a significant milestone that will enable the company to expand wiring harness solutions for key customers and broaden its global manufacturing footprint. He emphasized the potential synergies between Motherson's execution capabilities and AutoElectric's engineering expertise and customer relationships.
The combined business is expected to benefit from accelerated innovation across various powertrain technologies, shared operational best practices, and collaborative development of next-generation products for both passenger and commercial vehicles. The transaction will provide Motherson with immediate access to the global passenger vehicle wiring harness segment, potentially reducing time-to-market cycles and enabling cross-selling opportunities with its existing product portfolio.
The acquisition is positioned to capture growth in body harness applications, which represent substantial future opportunities as vehicle electrical architectures become increasingly complex.
The deal structure involves a put option agreement signed on December 22, 2025. Following employee consultation and regulatory approval processes, the put option is expected to be exercised in the fourth quarter of fiscal year 2026, with final closing targeted for the first quarter of fiscal year 2027. The transaction is projected to be cash earnings per share accretive upon completion.
Raghunandan NL, Director at Nuvama Institutional Equities, described the development as positive for SAMIL and aligned with its Vision 2030 strategy. He said the transaction expands the company’s addressable market at reasonable valuations. Following Sumitomo’s reduction in shareholding, the deal creates an opportunity for SAMIL to acquire Autoelectric, enabling its entry into the large global passenger-vehicle wiring harness market. The acquisition is expected to be cash EPS accretive.
Motherson, formerly known as Motherson Sumi Systems Limited, operates over 425 facilities across 44 countries and ranks among the top 15 automotive suppliers globally. The company serves major automobile manufacturers worldwide and has diversified into technology, industrial solutions, healthcare, aerospace, and logistics sectors.