Valeo to Invest $236.7 Million to Expand India Operations

New measures announced with President Emmanuel Macron's trip to India this week are anticipated to deliver new deals for French companies. On 18 February, French car parts maker Valeo outlined intentions to grow its sales in India. Valeo announced plans to spend over 200 million euros ($237 million) over the next few years to increase its footprint in the Indian market. The company aims to triple its sales in the nation to 700 million euros by 2028 with these new investments.

Valeo Expansion Strategies in India

With a growing emphasis on localisation in production and operations, the business is aiming to establish significant expertise in technology products in India. Its stated goal is to meet the demands of the country's small mobility and passenger car markets. After much delay, India and the EU finally reached an agreement a month ago.

The goal of this deal, in light of the increasing global trade tensions, was to decrease dependence on the United States and increase two-way commerce by lowering tariffs on most items. With a total order value of close to $1 billion, the strategic cooperation between Indian companies Mahindra & Mahindra and Valeo involved the provision of electric powertrains for several cars under the "Born Electric" passenger vehicle platform. 'India is a major pillar of Valeo’s worldwide growth and innovation agenda,' stated Christophe Perillat, CEO of Valeo.

According to Perillant, the corporation is determined to greatly increase its industrial footprint and number of engineering centres. Since its establishment in 1997, the group has grown to employ over 7,500 individuals in India.

Mahindra Bets Big on Vidarbha

In a recent announcement, Mahindra Group detailed their plans to invest INR 15,000 crore over 10 years to build their largest integrated manufacturing complex in Nagpur. The project will produce automobiles and tractors. When fully operational, the factory can produce 500,000 automobiles and 100,000 tractors. In 2028, production is expected to start at the Nagpur site. At the Advantage Vidarbha industrial summit, the region was positioned as an emerging hub for industrial growth in India. A 150-acre supplier park at Sambhajinagar (formerly Aurangabad), around 400 km away from Vidarbha, and 1,500 acres in Vidarbha would make up the facility.

Located near Sambhajinagar and Vidarbha, Mahindra will purchase approximately 350 acres of property in the Igatpuri-Nashik region. In addition to bolstering the expansion of its advanced technology business, this will also increase the capacities of its current products and engines. In order to expand its manufacturing footprint, Mahindra is purchasing more than 2,000 acres in three different locations.