French auto parts major plans to invest more than €200 million in India

French auto parts major Valeo plans to invest more than €200 million in India over the coming years and triple its India revenues to around €700 million by 2028, its Global CEO Christophe Périllat said.

“The Indian market is ready for us. It is becoming increasingly important and is currently the fastest-growing automotive market in the world, expanding at about 8% annually,” Périllat said. “It’s not just about volumes. The mix of vehicles is changing as well — more than 60% of new orders are now SUVs. The fuel mix is also evolving rapidly, with electric vehicles accounting for 4% of sales today and expected to rise to 25% by 2032.”

This structural shift, he said, plays to Valeo’s strengths, as the growing technology and electronic content in vehicles aligns closely with the company’s product portfolio

India currently contributes about 1% to Valeo’s global sales, but the company aims to raise that share to 6–7% in line with India’s share in the global automotive market.

Under its “Local for Local” policy, auto parts are manufactured locally for which Valeo has six plants across India. The power segment of its portfolio has already achieved 50% localisation. The French company’s portfolio also comprises ADAS, battery cooling plates technology, sensors, wipers, lamps as well as clutches, alternators.

The company also plans to expand its presence across two and three wheelers. Last month it announced a strategic partnership with Hero MotoCorp to develop Advanced Rider Assistance Systems (ARAS) for two-wheelers.

Valeo has been selected to supply electric powertrains for a range of vehicles under Mahindra & Mahindra’s ‘Born Electric’ passenger vehicle platform, along with on-board charger combo units for its electric utility vehicles. This strategic partnership represents a total order value close to $1 billion.

It has also recently announced a partnership for developing data cooling centre for telecom operators in India, which is expected to be deployed by the end of this year.

“This can be a big business for us,” said the CEO.