Quick Takeaways
  • Valeo India investment of over ?200 million will scale electrification technologies and ADAS localisation across multiple plants.
  • The company aims to grow India revenue to ?700 million by 2028 under its Elevate 2028 roadmap.

The Valeo India investment marks a significant expansion under the company?s Elevate 2028 roadmap, with more than ?200 million committed over the next three years. The funding will strengthen its electrification technologies and advanced driver assistance systems portfolio as India accelerates toward higher vehicle electrification and safety adoption. With current India revenues of about ?220 million, the supplier is targeting ?700 million by 2028 and aims to cross ?1 billion beyond that horizon, reflecting growing confidence in India?s evolving automotive ecosystem.

Valeo India Investment Focuses on Electrification Technologies

A substantial portion of the Valeo India investment will be directed toward the Power division, which oversees electrification technologies such as electric motors, inverters, on-board chargers, DC-DC converters, and battery cooling systems. These systems are central to the shift toward electric and hybrid vehicles across the Indian market.

Electric vehicle penetration in India currently stands near 4 percent but is projected to increase steadily over the coming decade. Electrified vehicles, including hybrids, are expected to account for nearly 25 percent of total market volumes by 2032. Around one quarter of the Power division?s India revenue already comes from electrified products, indicating steady momentum.

Localization levels for electrification technologies are currently about 50 percent, compared with 80 to 90 percent for legacy internal combustion engine products. The company is expanding production capacity at its Pune and Chennai facilities while increasing domestic sourcing to improve cost efficiency and supply resilience.

ADAS Localisation Strengthens Under Elevate 2028 Roadmap

The second pillar of the Valeo India investment is the Brain division, which focuses on ADAS localisation and intelligent safety technologies. Products include parking sensors, cameras, and radar systems designed to enhance vehicle safety and automation capabilities.

India?s tightening safety norms and SUV penetration exceeding 60 percent of new vehicle orders are increasing demand for advanced driver assistance systems. Local electronic parking sensor lines have already been installed, while camera production is being industrialised with manufacturing expected to begin in 2026. Radar localisation is planned in line with market readiness.

Regulatory updates anticipated around 2028, including requirements for automatic emergency braking and lane departure warning systems, are expected to further accelerate ADAS localisation and technology adoption.

Local-for-Local Manufacturing Strategy in India

Reinforcing its local-for-local manufacturing approach, the Valeo India investment supports six production facilities across Pune, Chennai, and Sanand, along with a major research and development centre in Chennai. The company employs more than 7,000 people in India, including over 3,000 engineers and more than 1,000 software specialists.

The strategy is to manufacture in India everything it sells within the country. More than 200 Indian suppliers support this ecosystem, strengthening supply chain integration and improving localisation levels across product lines.

Capacity Expansion and Workforce Strength

Plant expansion initiatives are aligned with rising demand for electrification technologies and ADAS localisation. The workforce scale and engineering depth position India as a key development and manufacturing hub within the global structure.

Expanding Into Two Wheelers and Future Growth

Beyond passenger cars, the Valeo India investment extends into two wheelers. The company has partnered with Hero to introduce advanced rider assistance systems, adapting ADAS platforms for motorcycle safety enhancement. This move reflects broader diversification beyond traditional passenger vehicle segments.

Currently contributing roughly 1 percent to global revenue, India is set to play a larger role under the Elevate 2028 roadmap. As vehicle technology content rises and electrification technologies scale further, the Valeo India investment positions the country as a strategic growth engine within the global automotive landscape.

Company Press Release

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