French automotive giant Valeo has unveiled plans to pour more than €200 million into expanding its operations in India, aiming to triple its local sales to around €700 million by 2028 as part of its Elevate 2028 strategic roadmap. The investment focuses on boosting electrification technologies, advanced driver assistance systems (ADAS), AI integration, and increased localization to capitalize on India’s booming automotive market and growing demand for next-generation mobility solutions. A key driver includes a major partnership with Mahindra & Mahindra for electric powertrains valued at nearly $1 billion.
Valeo Accelerates India Expansion with €200 Million Commitment Under Elevate 2028
Valeo, a leading global player in automotive technologies, is deepening its long-standing presence in India with a substantial capital injection exceeding €200 million (approximately ₹2,149 crore, depending on exchange rates) over the coming years. This move aligns directly with the company’s Elevate 2028 strategic plan, which emphasizes financial resilience, profitable growth, and targeted expansion in high-potential markets like India.
The French supplier has identified India as a cornerstone of its global growth strategy, driven by the country’s rapid shift toward electrification, the rise of software-defined vehicles, and increasing adoption of advanced safety and AI-enabled technologies. Valeo currently generates around €220 million in annual sales from its Indian operations, a figure the company expects to nearly triple to €700 million by 2028 through this investment push.
A significant portion of the expansion is fueled by a landmark strategic partnership with Indian automaker Mahindra & Mahindra. Valeo has secured a contract valued at close to $1 billion to supply electric powertrains and on-board chargers for Mahindra’s “Born Electric” platform, which encompasses upcoming passenger vehicles and utility vehicles. This deal not only anchors the investment rationale but also positions Valeo as a critical partner in India’s domestic EV ecosystem, where local content requirements and cost-competitive manufacturing are key priorities.
The investments will primarily target:
Expansion of industrial footprint — Scaling up manufacturing facilities to produce high-value components locally, with a strong emphasis on power electronics, electric motors, and charging systems. Valeo already operates plants in locations such as Pune and Sanand, and the new funding will enhance capacity for electrification products.
Engineering and R&D enhancement — Strengthening design and development centers in India to focus on ADAS, high-performance computing (HPC) for software-defined vehicles, and AI-driven innovations. This includes localizing advanced technologies to serve both Indian OEMs and global export markets.
Increased localization — Progressively raising the share of locally sourced components and operations to improve competitiveness, reduce supply chain vulnerabilities, and align with India’s “Make in India” initiative.
India’s automotive sector is experiencing transformative growth, particularly in electric mobility. Government incentives, ambitious emission targets, and rising consumer interest in EVs have created a fertile ground for suppliers like Valeo. The country is on track to become a major hub for next-generation automotive technologies, blending cost advantages with a large engineering talent pool.
Valeo’s focus on electrification and ADAS is timely. The supplier’s portfolio includes efficient electric powertrains, sophisticated sensor suites for autonomous driving features, and thermal management solutions critical for battery performance. By ramping up local production and R&D, Valeo aims to capture a larger slice of the Indian market while positioning itself to supply global OEMs from its Indian base.
The announcement comes amid strengthened Indo-French ties, highlighted by high-level diplomatic engagements, including recent visits that have spurred business collaborations in technology and manufacturing sectors. Valeo’s commitment underscores confidence in India’s long-term potential as a manufacturing and innovation powerhouse.
This expansion builds on Valeo’s existing footprint in India, where it has operated for over 25 years with multiple sites dedicated to lighting, wiper systems, powertrain components, and more recently, EV technologies. Recent inaugurations of dedicated EV-focused lines in Pune demonstrate the company’s ongoing momentum.
Key Investment Highlights and Targets
| Aspect | Details |
|---|---|
| Investment Amount | More than €200 million (over the coming years) |
| Target Sales by 2028 | Approximately €700 million (from current ~€220 million) |
| Primary Focus Areas | Electrification, ADAS, AI-led technologies, R&D, localization |
| Major Partnership | Mahindra & Mahindra – ~$1 billion contract for electric powertrains and chargers |
| Strategic Plan | Elevate 2028 – Emphasis on growth in high-potential markets |
| Expected Outcomes | Tripling sales, enhanced industrial/engineering capabilities, preparation for post-2028 growth |
Through this initiative, Valeo is not only expanding its operational scale but also contributing to India’s ambition to lead in sustainable and intelligent mobility solutions on the global stage.
Disclaimer: This is a news report based on publicly available information and company statements. It does not constitute financial, investment, or business advice.