Gestamp forecasts over 50% of its revenues by 2027 will come from EVs
With global electric vehicle production likely to grow fourfold over the next four years, Spanish Tier 1 supplier views the specialisation required by OEMs in the design and manufacturing of EVs as an opportunity to increase its market share.
Gestamp, the multinational company specialised in the design, development and manufacturing of highly engineered metal components for the automotive industry, expects that by 2027, more than 50% of its revenues will come from electric vehicles (EVs).
The company, which held today its second Capital Markets Day, presented its 2023-2027 Strategic Plan to investors. This future growth roadmap sets out the steps to follow to maintain its current growth path, building on the opportunities presented by the mobility industry transformation and its position as a global company. The plan seeks to take the multinational to new growth levels as the ones registered between 2017 and 2022, where the components produced by Gestamp per vehicle manufactured globally increased by over 30 percent.
Crash behaviour is different in BEVs mainly driven by the increased weight and the low point of gravity of the battery system. Gestamp has developed a wide range of BIW products to increase safety and also to protect the passengers in the vehicle from the batteries in a crash event.
Betting big on capturing EV market demand
Overall vehicle market growth, EVB penetration, the increase of outsourcing and gaining market share due to strategic positioning are the key levers on which Gestamp leverages its future growth forecasts. It’s expected that the size of the EV production market will increase fourfold over the next four years. Moreover, the specialisation required by customers in the design and manufacturing of EVs represents an opportunity for Gestamp to increase its market share.
According to the International Energy Association (IEA), mobility is responsible for 8% of annual CO2 emissions. Therefore, the industry faces the challenge of addressing the future in a sustainable and responsible way. To address this trend, it is estimated that 41% of the vehicles produced in 2027 will be electric, reaching a volume of 38 million EVs by that date.
Earlier this year, Gestamp had showcased its array of products and innovations such as Extreme Size Parts, Battery Boxes, Cell-to-Pack concepts, Joining Technologies, Chassis innovative Lightweight Solutions or Active Frunks at Auto Shanghai 2023.
In April 2023, Gestamp showcased EV-specific components including BIW, chassis, battery boxes and mechanisms at Auto Shanghai.
Partnering industry in sustainable mobility drive
The Strategic Plan foresees Gestamp's trend of geographical diversification to be very close to its customers.
Gestamp states that it “wants to support its customers as a Partner Supplier, whose contribution, in addition to the design and production of parts, provides value by reducing the weight of components, CO2 emissions generated and cost, thanks to its geographical diversification and its industrial and technological scalable capabilities.”
Francisco J. Riberas, Executive Chairman of Gestamp, said: “We are ready to take the challenge which means sustainable mobility for future generations. Our short-term objective is to support our clients in the transition towards a more sustainable mobility. Furthermore, that is why we acquired a stake in Gescrap, which contributes to the long-term global goal of net-zero car. Our key strengths will allow us to leverage on the mobility electrification and become the Partner Supplier to our customers.”
Circular economy and ESG
Gestamp has also provided visibility on the roadmap to promote and extend the business circular economy model, focusing on the use of recycled steel. The quality of recycled steel allows for an increase usage in the parts production, which reduces CO2 emissions throughout the production process. In addition, the integration of scrap management into Gestamp’s business strategy allows for a lifecycle complete traceability. The acquisition of Gescrap in December 2022 has strengthened its position by integrating the collection, sorting, and reuse of quality steel scrap into its production chain, in an environment where this secondary raw material is scarce.
Additionally, the ESG Strategic Plan, announced at the General Shareholders' Meeting in May, was presented. The proposal includes the objectives in these areas, which will position Gestamp at the forefront of sustainability and circular economy. It creates the framework for action that will make it possible to achieve full decarbonisation targets in Scopes 1 and 2 by 2045, working with the supply chain to guarantee alignment, without forgetting social commitments.
Gestamp, which has a global footprint, is present in 24 countries with more than 100 production plants, 13 R&D centres and a workforce of nearly 40,000 employees. In India, the company has three plants and one R&D facility.
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