French automotive supplier Valeo is making bold moves to transform its presence in one of the world’s fastest-growing vehicle markets with a fresh investment strategy that goes far beyond traditional production goals. In a major announcement made in February 2026 as part of broader business discussions during French President Emmanuel Macron’s official visit to India, Valeo revealed plans to invest more than €200 million in the country over the next few years with an aim to triple its Indian revenue to about €700 million by 2028 — a plan that industry experts say could reshape the automotive value chain in the region.
Valeo, a global supplier of auto parts ranging from lighting systems to advanced safety solutions, has operated in India for decades, but this strategic push comes at a time when India’s automotive landscape is rapidly evolving. The company’s planned investment will focus heavily on electrification technologies, advanced driver-assistance systems (ADAS), and new manufacturing capabilities that match the country’s shifting vehicle mix toward electric and software-defined models. The move is part of Valeo’s broader Elevate 2028 strategy, which aims to accelerate growth, improve profitability and strengthen the company’s global footprint through targeted investments in emerging markets.
Unlike a traditional expansion, Valeo’s India plan involves deep localization of cutting-edge technology. The strategy includes the expansion of production facilities in strategic hubs such as Pune, Chennai and Sanand, where the company already runs multiple manufacturing plants and R&D operations. By boosting local manufacturing of electrical powertrain components, onboard chargers, sensors, cameras and other key electrification systems, Valeo aims to reduce dependency on imports and provide faster turnaround times for domestic and global customers alike.
A crucial part of this growth strategy is Valeo’s strategic partnership with Indian automaker Mahindra & Mahindra. Under this agreement, Valeo has been selected to supply electric powertrains and associated components for Mahindra’s upcoming “Born Electric” vehicle platform — a deal valued at nearly $1 billion. This partnership not only strengthens Valeo’s immediate revenue prospects but also positions the company as a key technology provider for EV platforms in one of the world’s most dynamic vehicle markets.
Industry analysts note that India’s rapidly expanding electric vehicle (EV) segment, together with strong government incentives, production-linked schemes and a growing consumer demand for safety and automation features, makes the country an attractive growth destination for global suppliers like Valeo. With EV penetration expected to increase sharply over the coming decade, Valeo’s investments into electrification and ADAS manufacturing could unlock long-term opportunities not just within passenger vehicles but also in two-wheelers and commercial mobility solutions.
While competition remains fierce among global suppliers vying for market share in India’s EV and technology ecosystem, Valeo’s approach combines robust local investments with strategic partnerships and innovation. By tripling sales from roughly €220 million in recent years to a projected €700 million by 2028, the company signals confidence in its ability to capture a larger share of India’s automotive value chain.
In addition to manufacturing expansions, the French supplier plans to enhance its engineering and R&D capabilities within India, tapping into a growing pool of local talent. This expanded footprint is expected to support product development not only for India’s domestic market but also for exports to other regions, cementing the country’s position as a technology base within Valeo’s global operations.
Overall, Valeo’s €200 million investment highlights a trend among global automotive suppliers who view India as a strategic hub for electrification, software-enabled mobility and advanced automotive technologies. With broad market reforms, rising EV adoption and evolving consumer expectations, Valeo’s ambitious plan reflects both a commitment to and confidence in India’s future role in the global automotive industry — a bet that could deliver significant returns by 2028 and beyond.
