Valeo’s Strategy Built on Sustainability Trends

Valeo, one of the world’s leading automotive suppliers, has launched a “Move Up” plan to increase original equipment sales by 13 percent per year for the 2021-2025 period.

The company’s growth strategy is designed to take advantage of hyper-growth market trends starting to emerge in the fields of electrification and automation, focusing on major changes in four areas: Electrification, ADAS (advanced driver assist systems), Interior Design, and Lighting. Valeo’s business groups are leaders in each area with global manufacturing footprints supported by proven operational efficiencies and an international R&D network.

ELECTRIFICATION: With the integration of Valeo Siemens eAutomotive into the company’s Powertrain Systems Group, Valeo is developing a comprehensive offering of low- and high-voltage and electric powertrain solutions. Between 2021 and 2030, high-voltage solutions in the electric vehicle (EV) market are expected to record annual growth rates of nearly 18 percent.

Longer term, the company’s expertise in 48V systems will allow it to seize growth and diversification opportunities in other areas, such as electric bicycles, scooters, three-wheelers in Asia and robo-taxis. Valeo is working with 14 bicycle manufacturers on 48V automatic gearbox technology, for example, with planned delivery of more than 100,000 units to customers by 2024.

Electrification is also a driver for Valeo’s Thermal Systems Business Group. The unit develops interior and battery management solutions, giving the company a further edge in the field of efficient electrification.

ADAS: Valeo provides customers with the most comprehensive portfolio of sensors in the market, including components, sensors, domain and zone controllers, and functional software that offers active safety features and enables automation up to Level 4.

By 2025, three in four new cars will be fitted with technologies that support Level 1, 2 or 3 automation. The projected acceleration in ADAS will enable Valeo to double its sales in this business by 2025, representing average annual growth of nearly 20 percent. Valeo already has sold more than 1.5 billion ADAS sensors, and expects to sell more than 3 billion over the next five years.

INTERIOR EXPERIENCE: ADAS and electrification are leading to a “reinvention” of the automotive interior experience. Valeo’s Comfort & Driving Assistance Systems Business Group has the hardware and software needed to meet a growing demand for a safer, more immersive, and more connected driving experience. The company plans to grow its sales from 1.2 billion euros in 2021 to more than 2 billion euros in 2025.

LIGHTING: The elimination of radiator grilles and internal combustion engine cooling systems has given designers an opportunity to rethink the front-end design of many EVs and assert brand identity through a variety of new lighting features. Lighting also is used in and around new vehicles to improve communications between the car and its surroundings and enhance interior comfort, as well as to bolster branding.

2022-2025 Performance Expectations

After two years impacted by the COVID-19 crisis and electronic component shortages, Valeo expects to take full advantage of a recovery in forecast volumes for 2022-2025. Assuming global automotive production of approximately 98.5 million vehicles in 2025, corresponding to an annual growth rate of 6.3 percent over the five-year period, the company aims to grow its own original equipment sales by about 13 percent.

Valeo’s Move Up plan for 2021-2025 underlines the company’s commitment to meeting long-term growth and value-creation objectives through its unique ability to take advantage of megatrends that are shaping the industry. It also reaffirms Valeo’s commitment to sustainable mobility and combating global warming.