Global automotive supplier Valeo has placed India at the centre of its next phase of growth, outlining plans to triple its India revenues to about €700 million by 2028 as part of its newly announced ‘Elevate 2028’ roadmap.
The plan, presented at Valeo’s Capital Markets Day in Paris, marks the company’s shift from a technology-led turnaround to a more financially disciplined, growth-oriented strategy. While the global roadmap focuses on steadily improving margins, stronger cash flows, and a return to sales growth from 2027, India emerges as one of the most promising markets in Valeo’s portfolio.
“Since 2022, our Move Up plan has ensured that we are well positioned in terms of technology to succeed in the market and has laid the foundations for significant financial improvements, resulting in a steady improvement in Group profit and cash,” said Christophe Perillat, CEO of Valeo. “As we embark on the next stage with our Elevate 2028 plan, we intend to capitalize on these achievements and further improve our financial fundamentals.”
India’s “Moment of Transformation”
Valeo believes India’s automotive landscape is changing faster than ever—driven by the rise of electric mobility, demand for advanced safety features, and a rapid shift to feature-rich compact SUVs and two-wheelers.
From supplying electric powertrain components and HVAC systems to LED lighting, ADAS sensors, and domain controllers, Valeo expects its content per vehicle to rise sharply in India over the next three years.
Company insiders say this is one of the strongest medium-term growth projections Valeo has made for any significant market.
Electrification Lifts Valeo’s India Ambitions
The most significant opportunity, Valeo says, is electrification. With Indian OEMs scaling up EV programmes across scooters, motorcycles, three-wheelers and compact passenger cars, Valeo expects its powertrain technologies—48V systems, traction motors, inverters and thermal management—to deliver significant incremental business.
India is also emerging as a competitive base for EV components, both for local consumption and exports—something Valeo plans to tap more aggressively.
ADAS and SDVs Open the Next Front
The supplier is also preparing for a steep rise in demand for ADAS features as they move from the premium end into the mass market. This includes cameras, radars, 360-degree view systems, driver monitoring and high-performance computing units.
As Indian OEMs deepen their focus on software-defined vehicles, Valeo plans to expand engineering teams in Chennai and Bengaluru to support both domestic programs and global software development.
Premium-ready Lighting Business
India is already one of Valeo’s most important lighting markets. The ongoing shift towards full-LED headlamps, intelligent rear lamps and more stylised lighting signatures is expected to give the division a further push.
Notably, development cycles in India are shortening, helping Valeo convert orders into production faster—an advantage it believes will support its 2028 targets.
A broader India Footprint Takes Shape
Beyond manufacturing, Valeo’s India business is evolving into a more complete ecosystem involving R&D, software development, localisation and aftermarket services. Valeo Service is being reshaped to offer a wider range of digital and support solutions.
The company’s senior leadership refers to India as a “strategic base” that complements its strong presence in China and growing footprint in North America.
Global Plan Brings Sharper Financial Discipline
Globally, Valeo expects sales of €22–24 billion by 2028, supported by a move towards higher-margin technologies and tighter control on capex and R&D spending. The company is targeting an operating margin of 6–7% and free cash flow of more than €500 million after interest, allowing it to return to an investment-grade rating.
Despite a challenging macro backdrop, Valeo has maintained its 2025 guidance for sales, EBITDA and margins, and has revised its cash-generation outlook slightly upward.
Outlook: India Emerges as a Standout Market
While Valeo’s global plan aims for steady, measured growth, India clearly stands out as one of the markets with the sharpest growth curve. With electrification, safety technologies and premium lighting all rising in parallel, the company expects India to be not just a high-growth geography but a high-value one.
China Remains the Proving Ground
Even as India shapes Valeo’s medium-term growth, China remains the company’s most critical competitive arena. Valeo describes China as its “fitness centre,” a market where technology cycles are shorter, product expectations are sharper and cost pressures are intense.
Over the past two years, the company has significantly expanded its business with leading Chinese OEMs, securing multi-model, large-volume contracts in electric powertrains, ADAS and lighting. With an order intake in China nearly three times its current sales, Valeo expects the region to return to growth from the second half of 2026.
The company believes that the speed, innovation culture and scale advantages it develops in China will directly strengthen its global competitiveness, including its ability to serve India and North America more effectively.