Valeo Doubles Down on India's Electric Revolution
Valeo, a prominent French auto company, affirms ongoing investment in India following a meeting with Minister Piyush Goyal.
In an exclusive sit-down with Piyush Goyal, Commerce and Industry Minister of India, Valeo CEO Christophe Perillat declared that the global automotive titan is all set to keep pouring investments into India, cheering for the nation's electrifying automotive transition.
Situated centrally at Valeo's Pune facility, India is leading the charge in the nation's electric vehicle (EV) overhaul, bolstering its advanced operations that cater to India's ambitious mobility goals[1][4]. Speaking to reporters post the meeting, Perillat enthusiastically shared his views on India's promising economic growth, expressing excitement over Valeo's endeavors in the subcontinent.
"The Indian economy is brimming with positivity—we're heavily invested in India, and we can't wait to continue the growth narrative of Valeo over there," he said.
Perillat underscored several factors that propel his confidence in the Indian market:
- Passenger Car Market Boom: He foresees a robust increase in the passenger car market in the coming years, a result of improved infrastructure and better utility services[1].
- Local Talent: India offers a wealth of skilled managers and personnel, ensuring high-quality labor resources.
- The Taste for EVs: The soaring enthusiasm for EVs in India bodes well for the growth of the industry.
After the meeting, Goyal took to Twitter to express his satisfaction with Valeo's trust in India's growth story and their plans to amplify investments in the country[2].
Based on its analysis, Valeo predicts an unprecedented acceleration in India's EV adoption[1]. Currently, EVs make up roughly 5% of India's total vehicle sales, but this figure is set to skyrocket as more Indians embrace electrified two-wheelers, three-wheelers, and SUVs. By 2030, the market is projected to grow by a whopping 30%, making it a lucrative target for global manufacturers like Valeo[1].
As a pioneer in electric powertrain technologies, Valeo equips one in three new vehicles globally. In line with India's burgeoning electric vehicle demand, the company manufactures a broad spectrum of EV technologies for domestic automakers such as Tata Motors and Mahindra & Mahindra. These components cater to two-wheelers, three-wheelers, and SUVs[1].
The Indian government, led by Prime Minister Narendra Modi, has launched a visionary initiative to foster domestic EV manufacturing. This policy change dovetails with India's national objectives to achieve net-zero emissions by 2070, promote eco-friendly transportation, drive economic growth, and mitigate environmental impact[3].
The Ministry of Heavy Industries has recently set out the guidelines for the "Scheme to Promote Manufacturing of Electric Passenger Cars in India" (SPMEPCI), which was announced on March 15, 2024[3]. To encourage global manufacturers to invest in the Indian EV market, the Department of Revenue, under the Ministry of Finance, has reduced import duties according to the scheme's guidelines[3].
Approved applicants will be granted the opportunity to import Completely Built-in Units (CBUs) of electric four-wheelers with a minimum Cost, Insurance, and Freight (CIF) value of USD 35,000 at a reduced customs duty of 15% for a period of five years starting from the approval date[3]. These companies are required to make a minimum investment of INR 4,150 crore to qualify for the scheme[3].
Valeo's unwavering commitment to Indian operations highlights a broader wave of optimism among international automotive players about India's transition to sustainable transportation and its potential as a significant global manufacturing hub for electric vehicles[1].
[1] Enrichment Data[2] Enrichment Data: Tweet by Piyush Goyal[3] Enrichment Data: Ministry of Heavy Industries guidelines and Department of Revenue notifications[4] Enrichment Data: Valeo's role in the Indian EV sector
- The ambitious shift towards electric vehicles (EVs) in India has captured the attention of global automotive giants like Valeo, with CEO Christophe Perillat voicing his optimism for the industry's growth.
- Valeo, a leader in electric powertrain technologies, is investing heavily in India due to factors such as the surging interest in EVs, a skilled workforce, and promising economic growth.
- The Indian government's recent policy changes, including the "Scheme to Promote Manufacturing of Electric Passenger Cars in India" (SPMEPCI), are designed to foster domestic EV manufacturing and attract global players like Valeo.
- Recognizing the potential of India as a significant EV manufacturing hub, Valeo predicts an extraordinary expansion in the EV market in India, aiming to cater to Two-wheelers, Three-wheelers, and SUVs.
- Further boosting the EV sector, the Indian government, under Prime Minister Narendra Modi, aims to achieve net-zero emissions by 2070, promote eco-friendly transportation, drive economic growth, and minimize environmental impact.
- With reduced import duties and other incentives in place, international automotive companies like Valeo are poised to capitalize on India's electric vehicle revolution, contributing to a greener and more sustainable lifestyle.
