Compared to India, where EV adoption is still in its early stages and progressing at varying speeds across different vehicle segments, the global demand and production of EVs have slowed down.New Delhi: As the automotive industry transitions towards electric mobility, French automotive supplier Valeo is aiming to leverage electrification as a key strategy to drive growth in its revenue, Francois Marion, Executive Committee Member of the company, said.
Currently, the Tier 1 major supplies 10X more content to electric vehicles (EVs) than internal combustion engine (ICE) powered models, reflecting the growing opportunities for suppliers to expand business through an EV-focused portfolio.
Valeo, which designs and produces components and integrated systems for vehicles, including EVs, supplies major OEMs like Tata Motors and Mahindra & Mahindra (M&M). India contributes about 23% to the company’s global revenues, highlighting the country’s significant role in its overall business strategy and growth.
“India is very important for us because it is a growing auto market. First, when compared to other parts of the world, there is a lot of potential to increase car ownership. Second, it's a market which is developing very fast in terms of technology,” he said.
Engineering base
Marion sees India as an important base for R&D and development because of the “excellent competence of engineers” in the country.
About 17% of Valeo's R&D workforce is based in India. The company employs 3,500 R&D engineers in the country, of which 1,700 are software engineers.
Additionally, around 20% of Valeo’s 9,000 software engineers worldwide are based in India, reflecting the country's growing importance in the company's global innovation strategy.
Make in India
A significant part of Valeo's engineering base in hardware, software, electronics, materials, and cybersecurity is located in Chennai. This year, the company expanded its Group Technical Centre (GTC) in the city, further strengthening its capabilities in these critical areas to support its growth in the EV market.
To expand its computer vision activities, Valeo also has a center in Bangalore. This facility focuses on advancing technologies related to autonomous driving, camera systems, and other vision-based solutions for vehicles.
In September, the company opened a new production facility in Pune for power electronics products. This facility will produce the onboard power supply 3-in-1 combo unit for Tata Motors and M&M. Additionally, to address the localisation of the e-axle for Mahindra, Valoe plans to begin the fifth phase of its expansion at the Pune facility, starting in 2026.
Global sales guidance
Compared to India, where EV adoption is still in its early stages and progressing at varying speeds across different vehicle segments, the global demand and production of EVs have slowed down.
Hit by uncertainty surrounding global EV adoption, Valeo has revised its annual sales guidance for 2024, lowering it to EUR 21.3 billion, compared to the previous forecast of EUR 22 billion. This adjustment also reflects the challenges being faced by industry players in navigating the evolving automotive landscape, particularly as the pace of EV adoption is going slower than expected in some regions, even though the automobile industry eventually is expected to get electrified.
