Motherson Sumi Systems Ltdis well positioned for Indian and global auto turnaround. With more than a 65% market share in Indias wiring harness market and 50% market share in Indias rear-view mirror market, MMSL is the best proxy to play the recovery in Indian passenger car market. About 58% of its revenue is generated from Europe which is poised for a recovery after a protracted slowdown. The recovery in Europes auto market will benefit MSSLs interiors and rear-view mirror business.
We expect SMP, its European subsidiary for interiors to become profitable, driven by better management, a focus on the growing premium segment, new orders and an expanding product base with support from existing customers, as well as the in-sourcing of child parts from its group and cross selling of products, thus, realising synergies.