India Sama Group First Quarter Profit Falls One-Third

Samvardhana Motherson, India's largest auto parts manufacturer, recently announced that due to weak global automotive demand, its pre-tax profit for the first fiscal quarter (April to June) fell from 13.37 billion rupees in the same period last year to 8.84 billion rupees (approximately 101.02 million USD), a year-on-year decrease of one-third. Net profit dropped nearly 50% to 5.12 billion rupees, which includes a one-time expense of 1.36 billion rupees related to the restructuring of its European operations. Revenue increased by 4.7% to 302.92 billion rupees, while expenditure rose by 6.6% to 294.08 billion rupees.

Image source: SAMA Group

India, as the core market for the Sama Group, has shown weak performance: due to shrinking urban consumer demand, India's car sales for the quarter fell by 1.4%. Meanwhile, intense competition from affordable Chinese models, combined with the uncertainty of U.S. tariff policies, has put pressure on demand in Sama's overseas markets.

From the perspective of revenue structure, one-fifth of Sama Group's income comes from the Indian market, while the United States, China, and Germany together contribute nearly 50% of the company's income. Currently, Sama Group has established a production network covering three major regions: India, Europe, and North America.

Vivek Chaand Sehgal, Chairman of Samvardhana Motherson Group, stated, "We are fully prepared to deal with the ever-changing tariff policies. Most of the products we sell in the United States comply with the standards of the United States-Mexico-Canada Agreement (USMCA). For components that do not meet the requirements of the agreement, we are negotiating cost-sharing arrangements with our customers."

Sehgal also stated, "The recent tariffs imposed by the United States on India have not had any substantial impact on our operations. Despite the ongoing uncertainties in the business environment, they have also presented growth opportunities. Customer trust and confidence have always been the key drivers of our success. The global team of the Sama Group is dedicated to fulfilling the company's vision and creating long-term value for our stakeholders."

After Sehgal made the above remarks, Samvardhana Motherson Group's stock price once rose by 4%, reaching a daily high of 94.3 rupees.

Sama Group mainly produces automotive wiring harnesses, bumpers, and car rearview mirrors, with customers including Volkswagen, Mercedes-Benz, Maruti Suzuki, and Tesla.