The French auto component major Valeo expects to double its turnover in India to Euro 800 million and quadruple its clean energy business over the next five years. The company aligns with its global strategic plan, Move Up, which focuses on disruptions in autonomous, connected, and electric vehicles (EVs). Valeo India is investing Euro 150 million (Rs 1,500 crore) over the next three to four years to accelerate its business in the country, with 35% of the investment allocated to the electrification space.
Valeo is expanding its facilities in Pune and Sanand to cater to the growing demand for EVs and advanced driver assistance systems (ADAS). It is also planning to add 3,500 employees in the manufacturing and research and development (R&D) centre. The company’s investments in India primarily focus on electrification and sensor localisation. The growth in EVs and ADAS technologies is expected to outpace the market, while the company’s core clutches, HVAC, and lighting business is also growing steadily.
Valeo’s Three-in-One Combo Unit, a combination of power electronics products used in EVs, is one of its key offerings in the passenger EV space. The company aims to increase localization for this unit to lower costs and ensure availability. It plans to achieve 50% localization by 2023 and increase it to 80% in the next three years. Valeo is also exploring possibly manufacturing cameras in India for export purposes.
In addition to EVs, Valeo focuses on ADAS technologies and claims to be a world leader in automated driver assistance systems. The company offers a range of smart sensors, including ultrasonic sensors, radars, lidars, satellite/intelligent cameras, and compute units, which enhance vehicle safety and comfort.
Valeo’s Move Up plan aims to strengthen its technological capabilities and participate in the accelerating electrification space. The company plans to outperform the automotive market, enhance profitability, generate cash, and divest non-strategic assets. It invests a significant portion of its annual turnover in R&D, focusing on cleaner vehicles.
Here are some of the key takeaways from the announcement:
- Valeo plans to invest Rs 1,500 crore in capex over three years.
- Of this, 35% will be allocated to its EV business.
- The company will use the capex to expand its manufacturing capacity, develop new products, and support its growth in the EV market.
- Valeo currently has two EV plants in India, one in Manesar and the other in Chennai. The company plans to add a third plant in the next few years.
- Valeo is also developing new products for the EV market, including e-motors, inverters, and battery management systems.
- The company is targeting a 10% share of the global EV market by 2025.
This is good news for the Indian EV market, as it shows strong investor interest in the sector. Valeo is a leading automotive supplier, and its investment is a vote of confidence in the Indian EV market. The company’s plans to expand its manufacturing capacity and develop new products will help boost the EV market’s growth in India.
The company considers India a key hub for testing, validation, and global development. It has a development centre in Chennai that supports global customers in various engineering and software development areas. India is expected to have more export opportunities in EVs and sensors, making it a potential global hub with deeper localization and competitiveness.