Valeo Group (China) Business Report FY ended Dec. 2024

Performance

[Entire Group]
-In 2023 (ending December 2023), the company's overall sales increased by 10.0% year-over-year (y/y) to EUR 22.044 billion. Although exchange rate fluctuations caused sales to fall by 3.3%, changes in the scope of consolidation led to a 4.0% increase in sales. Excluding the impact of exchange rate fluctuations and changes in the scope of consolidation, sales increased by 9.3% y/y. This was due to increased sales in all four business units of the company and compensation from high-voltage business customers. In terms of sales of existing businesses, sales to automakers increased by 13% y/y, sales in the aftermarket increased by 4% y/y, and other sales increased by 4% y/y.

[China business]
-In the fiscal year ended December 31, 2023, Valeo Group sales to OEMs in China reached RMB 30 billion, an increase of 10.4% y/y, accounting for 17% of the Group's total sales.

Strategic alliances

Partner	Details
Waigang Town People’s Government	According to a Jiading District press release, the Waigang Town People’s Government signed a strategic cooperation agreement with Valeo. Valeo will build a new “comfort & driving assistance systems manufacturing and R&D site” mainly for the R&D and manufacturing of projects such as autonomous driving cameras, LiDARs, domain controllers, and chip binding in the Waigang Industrial Park. Covering a planned land area of around 30,000 square meters and a total floor area of 58,596 square meters, the site, with a total investment amount of around CNY 2.9 billion, will be built in two phases. It is scheduled for groundbreaking in mid-2024, with an annual output value of around CNY 4 billion upon commissioning. (From a Jiading District press release dated February 22, 2024)
Didi Autonomous Driving	Valeo announced the signing of a letter of strategic cooperation and investment intent with Didi Autonomous Driving, through which the former will strategically invest in the latter, and both parties will jointly develop an intelligent safety solution for Level 4 Robotaxis. The two parties will form a joint R&D team to create a standalone and cost-effective safety redundancy system meeting automotive-grade requirements for Level 4 unmanned driving and shared mobility scenarios, as well as relevant technologies. This solution will be first applied to Didi Autonomous Driving’s Level 4 Robotaxis. (From a Valeo press release dated May 30, 2023)

Partner

Details

Waigang Town People’s Government

According to a Jiading District press release, the Waigang Town People’s Government signed a strategic cooperation agreement with Valeo.

Valeo will build a new “comfort & driving assistance systems manufacturing and R&D site” mainly for the R&D and manufacturing of projects such as autonomous driving cameras, LiDARs, domain controllers, and chip binding in the Waigang Industrial Park. Covering a planned land area of around 30,000 square meters and a total floor area of 58,596 square meters, the site, with a total investment amount of around CNY 2.9 billion, will be built in two phases. It is scheduled for groundbreaking in mid-2024, with an annual output value of around CNY 4 billion upon commissioning. (From a Jiading District press release dated February 22, 2024)

Didi Autonomous Driving

Valeo announced the signing of a letter of strategic cooperation and investment intent with Didi Autonomous Driving, through which the former will strategically invest in the latter, and both parties will jointly develop an intelligent safety solution for Level 4 Robotaxis. The two parties will form a joint R&D team to create a standalone and cost-effective safety redundancy system meeting automotive-grade requirements for Level 4 unmanned driving and shared mobility scenarios, as well as relevant technologies. This solution will be first applied to Didi Autonomous Driving’s Level 4 Robotaxis. (From a Valeo press release dated May 30, 2023)

Start of operation

Plant/R&D center	Details
Valeo Intelligent Transportation Systems (Shanghai) Co., Ltd.	On June 24, 2024, Valeo Intelligent Transportation Systems (Shanghai) Co., Ltd., a Valeo subsidiary, broke ground in Waigang Town, Jiading District, Shanghai. Established in November 2023, the company is the latest fruit of strategic cooperation between Valeo and the Waigang Town People’s Government. Located in the Waigang Industrial Park, the company covers a land area of around 30,000 square meters. It is mainly engaged in the R&D and manufacturing of items such as intelligent driving cameras, LiDARs, domain controllers, and chip binding. (From a Valeo press release dated June 26, 2024)
Wenling expansion project for its wiper strip operations	Valeo held a groundbreaking ceremony in Wenling, Taizhou for an expansion project for its wiper strip operations. Upon completion of the project, Valeo will invest in the first wiper strip extrusion line in China’s wiper industry. Concurrently, the company will add production lines for wiper motors, wiper strips, and wiper sensor cleaning systems to scale up manufacturing at its Wenling Plant. For this project, which has a total investment amount of nearly CNY 200 million, a 2,000-square-meter standalone constant temperature and humidity wiper strip extrusion workshop and a 2,000-square-meter intelligent stereoscopic warehouse will be built. Employing an automated logistics transportation system and high-standard sewage treatment equipment, the entire plant is designed as an intelligently operated plant with an FM-certified fire extinguishing system, green energy, and energy-saving products. (From a Valeo press release dated May 31, 2024)
Shenzhen: Smart Manufacturing Center	Mainly produces products such as remote communication modules, 5G communication modules, wideband modules, front camera systems, domain controllers, etc.
Wuhan: Comfort & Driving Support System R&D Center	The Wuhan Comfort and Driving Support System R&D Center was established in 2017, and the second phase of the plant was completed in 2019. With the start of the third phase project, the company is aiming to expand the scale of its business.
Shanghai: Comfort & Driving Support System R&D Center	In May 2023, it began operations as an advanced driver assistance research and development center.
Valeo Ichikoh (China) Auto Lighting Co., Ltd. Valeo Wuhan Second Plant	After four expansions, the factory officially began operations in February 2022. In the future, Valeo plans to invest CNY 200 million in the new plant to build Asia's most advanced intelligent car lamp and key module production line, capable of producing 500,000 sets of headlights annually.

Exhibitions

Exhibition	Details
Auto China 2024 motor show in Beijing	Valeo announced that it will join Auto China 2024 in Beijing from April 25 to May 4. The Company will present its hardware and software solutions for powertrain and thermal management, as well as innovations for more diverse mobility such as electrified 2- or 3 or 4-wheel vehicles, charging stations, software solutions to predict and manage the range of EVs, etc. The hardware and software solutions for both interior and exterior lighting, the range of sensors, new generation domain/zone controllers, and a set of software integrating algorithms based on artificial intelligence (AI) for greater safety and new functionalities will also be displayed. Moreover, Valeo’s technologies will also be showcased in several models presented by its customers at the event. (From a press release dated April 17, 2024)
Auto Shanghai 2023	Valeo Group (Valeo) announced that at Auto Shanghai, it will present for the first time the new eDeliver4U, an autonomous and electric delivery droid equipped with Valeo’s cutting-edge innovations and entirely developed in China. The droid is based on an electrified chassis integrating Valeo’s 48V solutions for light mobility. It is also equipped with ADAS sensors and a software stack. It will present a “Smart Heat Pump” for EVs to ensure the comfort of passengers while optimizing the autonomy of the battery. Valeo has developed it for a major Chinese automaker. It will present its portfolio to serve all market needs relating to the electric powertrain, including the new-generation automotive electric motor entirely rare earth and magnet-free developed in partnership with Renault. It will also showcase its comprehensive management of thermal systems. Valeo will present the award-winning SCALA 3 LiDAR. SCALA 3 dramatically increases the domain of operation – and therefore the customer value – of private vehicles thanks to a wider scope of use and higher speed support. Valeo is developing innovative and powerful domain controllers for both parking and driving automation. It will go into production in 2024. This cost-effective solution for L2 vehicles will comply with GSR regulations and NCAP. For vehicle interiors, it will present technologies in the areas of access (phone as a key), monitoring (interior cocoon and driver monitoring system), and interaction (woodlike interactive surfaces). Valeo will present Valeo Lighting Experience and the Digital Twin. These cutting-edge systems will accelerate the virtual development of lighting solutions, with prototypes built at the latest possible stage, thus reducing development costs. (From a press release dated April 14, 2023)
Green and Smart Auto Shanghai 2023 (GSA 2023)	Valeo announced that it will participate in Green and Smart Auto Shanghai 2023 (GSA 2023) to be held from June 11 to 14, where it will exhibit its initiatives to address climate change and its latest scientific and technological innovations. The company previously committed to achieving 100% carbon neutrality for all its operations worldwide and the whole supply chain by 2050, for which the corresponding Carbon Reduction Plan (CAP 50) has been developed. (From a Valeo press release dated June 5, 2023)

※You can view the exhibition images here

<R&D Centers>

Name of facility	Operating segment	City	Overview
Valeo Group Electronics Expertise and Development Services	Electronics	Shenzhen, Guangdong	-Research and development of electronic products.
Valeo Global Electronics (Wuhan) R&D Center	Electronics	Wuhan, Hubei	-
Valeo Lighting Systems Hubei Technical Center Co., Ltd.	Comprehensive R&D center	Wuhan, Hubei	-Research and development in advanced technologies such as lamps, automatic parking, driver assistance and HMI
Valeo Power (Shanghai) Co., Ltd.	Powertrain systems	Shanghai	-Research and development of powertrain products.
Valeo Compressor (Changchun) Co., Ltd.	Thermal systems	Changchun, Jilin	-Development of compressor products
Valeo Automotive Air Conditioning Hubei Co., Ltd.	Thermal systems	Jingzhou, Hubei	-Air conditioning system, evaporator, condensers
Nanjing Valeo Clutch Co., Ltd.	Powertrain systems	Nanjing, Jiangsu	-Clutch systems
Wuxi Valeo Automotive Components and System Co. Ltd.	Powertrain systems	Wuxi, Jiangsu	-Actuators, sensors, engine controllers
Valeo Siemens eAutomotive (Changshu) Co. Ltd.	Powertrain systems	Changshu, Jiangsu	-New Energy Vehicle motor management systems, electric vehicle electronic control integration, electric vehicle drive motors, vehicle DC/DC converters
Siemens Automotive ePowertrain Systems (Shanghai)Co., Ltd.	Powertrain systems	Shanghai	-Electric vehicle powertrain systems
Shanghai Valeo Automotive Electrical Systems Co., Ltd.	Powertrain systems	Shanghai	-Starters, generators
Foshan Ichikoh Valeo Auto Lighting Systems Co., Ltd.	Visibility Systems	Foshan, Guangdong	-Lamps
Valeo Interior Controls (Shenzhen) Co., Ltd.	Comfort and Driving Assistance Systems	Shenzhen, Guangdong	-Switches, brake assist, rain/light sensors
Shanghai Comfort & Driving Support System R&D Center	Comfort and Driving Assistance Systems	Shanghai	-Aiming to quickly respond to local customer needs

Patents

-Valeo has ranked once again first among French patent applicants globally, with 1,218 patents published in one year (2022), of which 44% were in France, 25% in Germany, 8% in Europe (excluding France and Germany), 11% in China, and 12% in the rest of the world, according to the ranking published by France's intellectual property institute (INPI). Valeo’s innovations are protected by a portfolio of almost 28,000 patents worldwide. The patents filed in 2022 mainly concerned electrification technologies, driving assistance technologies, lighting technologies, and technologies for reinventing life on board. In 2023, Valeo invested EUR 2 billion in R&D, or 10% of the Group’s original equipment sales. (From a press release dated January 23, 2024)