Valeo, a French global automotive supplier headquartered in France has posted that the sales in the first quarter of 2023 for the company are up 15 percent to EUR 5,482 million ( Rs 50,000 crore approx) aided by the acceleration in ADAS and high-voltage electric powertrain system.
According to the company, business activity in these two areas is very strong, lifted by market momentum and by the positioning of the brand’s technology portfolio. In particular, the high-voltage electric powertrain business has recorded significant order intake of around 4 billion euros, covering all regions and technologies, notably the 800V SiC inverter.
In the first quarter, automotive production was up 6 percent compared with the same period in 2022. This increase was attributable to a low level of new vehicle inventories and growth in production volumes in Europe and North America of 17% and 10 percent, respectively. In China, automotive production was down by 8 percent, over the period as a result of a low level of activity in January (health crisis) and February (Chinese New Year), which was partly offset by a recovery in production volumes in March.
In this environment, total sales came in at 5,482 million euros, up 11 percent on an adjusted basis compared with first-quarter 2022 (up 8 percent like for like). Changes in exchange rates had a negligible impact. Changes in Group structure had a positive 7 percent impact for the period. They result mainly from the integration of the high-voltage electric powertrain business. Sales for this business came in at 362 million euros in the first quarter.
Original equipment sales climbed 13 percent like for like on an adjusted basis (up to over the period like for like), lifted by the recovery in global automotive production, mainly in Europe and North America, and an increase in content per vehicle, particularly in ADAS (original equipment sales up 21 percent like for like) and in high-voltage electric powertrain (original equipment sales up 69 percent like for like).
Aftermarket sales posted solid growth of 6 percent like for like on an adjusted basis, despite an unfavorable basis of comparison linked to strong growth for this activity during the same period in 2022. This performance was fueled by the increased number and age of vehicles on the road, a more attractive offering from Valeo thanks to a shift towards more value-added products, and the impact of price increases.
