With India contributing 1 percent to global revenue and China 17 percent, Valeo’s CEO says the difference lies in timing of electrification and ADAS adoption, not strategy, as India now enters a scale-up phase backed by a €200 million investment over three years.
18 Feb 2026 | 118 Views | By Mukul Yudhveer Singh and Ketan Thakkar
For Valeo, India and China operate under the same strategic philosophy. Both follow a strict local-for-local model. Both rely on domestic manufacturing, local suppliers and indigenous engineering teams.
What differs, according to Christophe Périllat, CEO of Valeo, is not the approach, but the stage of technological evolution.
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For Valeo, India and China operate under the same strategic philosophy. Both follow a strict local-for-local model. Both rely on domestic manufacturing, local suppliers and indigenous engineering teams.
What differs, according to Christophe Périllat, CEO of Valeo, is not the approach, but the stage of technological evolution.
China today contributes around 17 percent to Valeo’s global revenue. India accounts for roughly 1 percent. The divergence, Périllat indicated, reflects the pace at which electrification and advanced safety systems scaled in each market.
China’s rapid adoption of electric vehicles and advanced driver assistance systems over the past decade allowed Valeo to scale significantly in that market. The company now operates 27 plants and employs nearly 18,000 people there.
India, by contrast, is only now entering a similar technology acceleration phase.
SUVs account for more than 60 percent of new vehicle orders in India. EV penetration stands at around 4 percent today but is expected by Valeo to approach 25 percent by 2032, including hybrids. Meanwhile, safety regulations are tightening, with more advanced ADAS features expected to become mainstream by 2028.
“The car will be electrified, the car will be safer, and the car will be more and more software,” Périllat said, describing the shift that aligns India more closely with Valeo’s global strengths.
Valeo’s growth in India is anchored in its Power and Brain divisions. The company is localising electric motors, inverters, DC-DC converters and battery cooling systems, while simultaneously industrialising camera production for ADAS, with manufacturing scheduled to begin in 2026.
Electrified products already account for around 25 percent of the Power division’s India revenue. Localisation in electrification stands at roughly 50 percent and is increasing as volumes grow.
To support this phase of expansion, Valeo will invest more than €200 million in India over the next three years to expand capacity and deepen localisation.
The company employs over 7,000 people in India, including more than 3,000 engineers and over 1,000 software engineers, underscoring its growing software-led profile in the country.
For Périllat, the contrast between China and India is not structural. It is chronological.
As India’s automotive market transitions toward electrification, safety and higher software content, Valeo expects the country’s contribution to move beyond its current 1 percent share, reflecting its rising role in global automotive production.
India, he suggested, is not following a different path. It is entering the same technology curve at a different point in time.