Global automotive supplier targets $108 Billion, eyeing full vehicle assembly and non-auto expansion
07 Sep 2025 | 5367 Views | By Shahkar Abidi and Ketan Thakkar
Auto component major Motherson Group, has unveiled an ambitious "Vision 2030" plan, targeting a staggering $108 billion in gross revenues by fiscal year 2030. This aspirational goal, shared during a recent analyst meet, marks a significant leap from its $25.7 billion revenue in FY25, projecting a robust 33% Compound Annual ...
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Auto component major Motherson Group, has unveiled an ambitious "Vision 2030" plan, targeting a staggering $108 billion in gross revenues by fiscal year 2030. This aspirational goal, shared during a recent analyst meet, marks a significant leap from its $25.7 billion revenue in FY25, projecting a robust 33% Compound Annual Growth Rate (CAGR) over the period.
The strategy hinges on aggressive diversification and strategic acquisitions, positioning Motherson not just as an automotive component supplier, but as a multi-industry player navigating the complexities of modern manufacturing.
The company management, while highlighting the Vision 2030 indicated it as an effort to fortify diversification through its "3CX10" principle, ensuring that no single country, customer, or component contributes more than 10% of total revenues.
This principle, was already successfully applied in its Vision 2025 period, where it achieved a benchmark of no single customer contributing more than 10% of revenues, adding over 40 marquee customer groups, with more than half from new industries.
Management also aims to deliver a 40% consolidated Return on Capital Employed (ROCE), a substantial increase from 18% in FY25. A significant portion, up to 75%, of these incremental revenues is anticipated to come from acquisitions across both automotive and non-automotive segments.
The Group's blueprint involves a significant move up the value chain. After decades of progression from component manufacturing to products, systems, and integrated assemblies, Motherson's next logical step by 2030 is to become a full vehicle assembly player.
This expansion is not limited to automotive, with plans to also progress to complete assembly in non-auto segments. This push for deeper integration positions Motherson to compete more directly with larger systems integrators and even smaller-volume vehicle assemblers, a new frontier for a company historically known for components.
The company's Vision 2025 scorecard reveals its ability to navigate industry headwinds. Despite a nearly 60 million unit shortfall in automotive production against 2020 projections, Motherson maintained its long-term targets by turning around underperforming units and strategic expansion.
This included investing in 37 greenfield facilities globally, with 36 in emerging markets, strengthening its footprint in India (20% of revenues in FY25 from 15% in FY20) and China (11% from 9%). The period also saw a record 23 acquisitions.
Geographically, China remains a strong growth engine, where Motherson has built a robust presence with 33 facilities and five joint ventures. The company supplies to seven of the top 10 New Energy Vehicle (NEV) manufacturers in China, demonstrating impressive revenue growth at a 20% CAGR, from $57 billion in FY20 to $140 billion in FY25. Key local customers include major players like Changan, Chery, Dongfeng, SAIC, Geely, and Xiaomi.
A recent strategic move includes the acquisition of an 81% stake with voting rights in Yutaka Giken Co. Ltd. (YGCL) and 11% in its subsidiary Shinnichi. This acquisition, conducted through Motherson Global Investments (MGI), is aimed at strengthening the partnership with Honda, a current majority stakeholder in YGCL, and expanding business with other Japanese OEMs.
YGCL specializes in metal components and assemblies, including rotors and stator assemblies for e-HEV motors, drive systems, brake systems, and thermal management systems, catering to passenger vehicle, commercial vehicle, and all-terrain vehicle segments. This positions Motherson to cross-sell its existing product portfolio, particularly in emerging markets.
Motherson is also deepening its expertise in core product lines. In Wiring Harnesses, it has achieved end-to-end vertical integration, from components and connectors to polymer compounding and vehicle electronics, enabling greater content per vehicle and cost efficiency across auto and non-auto industries.
Its Vision Systems business has evolved from basic build-to-print solutions to a full system solution provider, integrating cameras, electronics, software, and cybersecurity, ready to capitalize on future growth in digital mirrors, driver monitoring, and even healthcare/defence applications.
Notably, the Group's "local-for-local" model: sourcing, producing, and supplying within key markets shields it from the material impact of US tariffs, the company management remarked.
Motherson's Vision 2030 outlines an aggressive, multi-pronged approach to growth, leveraging strategic acquisitions, vertical integration, and diversification into high-growth sectors.
The roadmap suggests a transformation beyond its traditional role, as the company endeavors to become a more dominant and integrated global manufacturing powerhouse in the coming decade.