Auto parts manufacturers bet on more expensive cars

Auto parts manufacturers bet on more expensive cars

The forced electrification wanted by Brussels will increase car prices. The move upmarket wanted by manufacturers too. And major automotive suppliers like Valeo are rubbing their hands. The electrification market is “estimated at 92 billion euros in 2030 (powertrain only, excluding new cars, excluding batteries), including 40% for equipment manufacturers”, assures this Wednesday, July 27 Christophe Périllat, managing director of Valeo, during a lunch presentation of the half-year results. And the tricolor group intends to grant itself “10 to 15%” of the share of this cake returning to the equipment manufacturers. The vehicle equipment supplier also plans to “achieve 15 billion euros in turnover in 2025” in this electrification, specifies Robert Charvier, its financial director. That is almost the equivalent of its annual turnover today. A partnership was initialed last February with Renault to design and produce a new electric motor in France. In June 2022, Valeo signed an agreement with Honda to electrify three-wheeled vehicles in India. And this, four months after announcing fourteen new customers, manufacturers of two-wheelers, for its electric motors for… bicycles.

While waiting for these future plans, Christophe Périllat welcomes the “high level of order intake, which reached 13.1 billion euros in the first half, to which must be added 2.9 billion at Valeo Siemens eAutomotive, the joint venture specialized in components for… electric motors in which the Frenchman has bought all of the shares!Demand is indeed strong in components for electric motors for so-called zero-emission cars but also for hybrids.It is also strong in thermal activities. “In an electric car, you have to create heat to warm the cabin on a winter morning, for example, but also to cool the batteries,” explains the manager. Any benefit therefore for Valeo.

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