Valeo Has Targeted Growth in India and China Markets
The manufacturer is expanding its regional commercial vehicle operations to meet shifting local transit needs.
Updated on Sept. 25, 2026 in Auto Parts
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Automotive supplier Valeo has implemented a local-for-local strategy to bolster its commercial vehicle business across China and India. The initiative aims to align production and innovation more closely with regional demand as the company works toward its 2028 growth targets.
Why it matters
This shift is part of the broader Elevate 2028 plan, which seeks to boost market competitiveness by tailoring vehicle components like safety systems and HVAC units to specific regional markets. For households and fleet operators in these regions, this strategy anticipates a diverse future mix of electric, fuel cell, and combustion-powered vehicles.
Valeo projects its India sales will reach €700 million by 2028, representing a significant increase over the €220 million reported in 2024. The firm currently operates 40 production sites in China with 16,000 employees.
The players
Valeo
An international automotive supplier focused on advanced technology, safety systems, and thermal management for both passenger and commercial vehicles.
Motherson Group
A global automotive component manufacturer that maintains a joint venture with Valeo for the production of heating and ventilation systems in India.
The details
Valeo is localizing its organizational processes to better integrate regional development with production. In India, the company leverages a joint venture with Motherson Group to manufacture climate control systems and operates a safety tech hub in Sanand, Gujarat. This structural adjustment allows the brand to respond to competitive regional truck markets while simultaneously supporting the development of advanced safety technology like the Smart Safety 360 system.
Timeline
2024: Valeo reported €220 million in India sales.
November 2025: The CEO outlined the growth strategy at Capital Markets Day.
May 2026: Valeo secured a Smart Safety 360 supply contract.
2028: Target year for the Elevate 2028 plan and sales goals.
The Home Front
This move signals a shift in the global automotive supply chain, prioritizing regional production to better manage local transit demands. It follows the broader industry trend of decentralizing manufacturing to align with specific regional regulatory and performance standards.
If you operate a commercial vehicle or rely on logistics services in these regions, watch for potential changes in the availability of proprietary safety and climate control parts. Keep your vehicle service manual updated and consult a licensed professional for any necessary maintenance on integrated safety systems.
The takeaway
Valeo is restructuring to support a wide range of vehicle powertrains, from traditional diesel to emerging electric options, in major international markets. Consumers should focus on tracking long-term maintenance needs for safety-critical components as these new systems reach local fleets.
Further reading
For more information on how manufacturing trends influence vehicle maintenance and parts availability, read our guide to Auto Parts.
Source note: This article includes information reported by ETAuto.
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