Samvardhana Motherson Steps Up Robotics, AI Adoption to Improve Efficiency

Samvardhana Motherson International (SAMIL) has built a pipeline of approximately 940 automation projects across its global businesses and aims to implement more than 1,000 such projects by 2027, to improve manufacturing efficiency amid rising costs and uneven vehicle demand.

The programme, part of the company's Vision 2030 strategy, covers industrial robots, collaborative robots and automated guided vehicles (AGVs), with applications in assembly operations, movement of materials within factories and end-of-line testing.

"We have already built a pipeline of approximately 940 projects across our business verticals, covering robots, collaborative robots, and automated guided vehicles, or AGVs, for applications such as assembly, intra-logistics, and end-of-line testing," Laksh Vaaman Sehgal, Director of Samvardhana Motherson International, said during the company's Q2 FY27 earnings call on Thursday.

The company plans to combine physical automation with digital technologies and AI-led systems to improve productivity and strengthen operational efficiency across its manufacturing network. Management, however, did not disclose the total investment required, expected cost savings or how many of the identified projects have already been completed.

According to Motherson's Vision 2030 investor presentation, the company is also developing automation capabilities internally. These include designing and building production machines, reprogramming existing robots for new vehicle programmes, and developing automated guided vehicles (AGVs) and autonomous mobile robots (AMRs). The company said these capabilities would help reduce dependence on external technology providers, lower costs and enable faster deployment of automation solutions tailored to its manufacturing requirements.

Motherson is also using digital twins, which create virtual models of manufacturing operations, and AI-based systems to improve production layouts, optimise resources and increase efficiency. Under its Vision 2030 technology and automation programme, the company outlined a target of improving efficiency by 15% and having software bots handle 30% of transactions across indirect business functions. 

The initiative comes as Motherson faces higher costs for raw materials and logistics, alongside weaker vehicle production in several major international markets.

According to industry production figures cited by Motherson during the earnings call, global light vehicle production declined 2.3% year-on-year during the September quarter. Production fell 5.5% in China, 3.8% in North America and 0.6% in Europe, while India recorded 15% growth.

The uneven demand environment has prompted the company to adjust its manufacturing operations according to customer requirements, reducing costs in weaker markets while directing resources towards regions and businesses offering stronger growth opportunities.

"We have also implemented a lot of AI and automation to make our plants completely competitive," Sehgal said.

He indicated that the company has been adjusting its manufacturing footprint and workforce requirements in markets where customer production volumes have declined. These measures, alongside automation and operational improvements, have helped Motherson maintain profitability despite higher costs and changing demand conditions.

The company is also negotiating with customers to recover increases in commodity prices. Management said the extent and timing of these recoveries vary depending on the customer, product and location.

Motherson reported consolidated revenue of ₹38,280 crore during Q2 FY27, an increase of 27% year-on-year, supported by the integration of recently acquired businesses and strong performance in wiring harnesses.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 23% to ₹3,353 crore, although the EBITDA margin narrowed to 8.8% from 9% a year earlier, mainly because the newly acquired businesses operated at lower margins.

Management said that excluding the impact of acquisitions, margins improved both year-on-year and sequentially, supported by cost optimisation, higher operating leverage and recovery of input cost increases from customers. The company's modules and polymer products division was among the businesses contributing to these efficiency improvements.