MAHLE sales up 14% to Euro 12 billion in 2022; eyes significant growth with electrification

German automotive component supplier MAHLE reported a 14 percent increase in its sales to Euro 12 billion in 2022. After the dip as a result of Covid in 2020, the sales of the technology group in 2021 grew by 11.9 percent to Euro 10.9 billion.

According to MAHLE, the sales potential for the company in connection with electric cars is three times as high as with internal combustion engines. The company is reorienting itself in light of the transformation in the automotive industry. Under its corporate strategy 2030+, the company has highlighted electrification and thermal management, as well as components for high-efficiency green internal combustion engines, as its core.

“With a large number of innovative, high-efficiency products for e-mobility and our proven system competence in thermal management, we will leverage growth opportunities,” said CEO Arnd Franz at the annual press conference held in Stuttgart.

 In 2022, the technology group received new orders for more than Euro 11 billion, about half of which were not dependent on the internal combustion engine. The strongest growth was experienced in the business units of thermal management and electronics and mechatronics, up 16 percent and 13 percent, respectively—both especially relevant for e-mobility. Double-digit growth was also recorded in the business units connected with the internal combustion engine, as well as in the spare parts and accessories business, the company stated.

Cost Pressure

Cost increases as a result of the crisis, especially for materials, energy, and carriage, had a severe negative impact on the component supplier’s business, especially in the first half of the year. The company countered these developments with cost savings, productivity improvements, and price adjustments; both sales and the operating result significantly improved in the second half of the year. “We achieved this success through close cooperation with our customers and suppliers in order to distribute these additional costs fairly and equitably,” said MAHLE CFO Markus Kapaun.

“Provisional figures for the first quarter indicate that this positive trend has continued into the new financial year. This shows that we are succeeding with our mix of innovative products for e‑mobility and proven competence for the internal combustion engine,” Franz added. Considering the current geopolitical situation, the company expects the cost increases to continue for the next few years.

Last year, the company's operating profit was also lower than in the previous year, at Euro 60 million. "It was not possible to compensate entirely for the massive additional costs of Euro 800 million as a result of the crisis during the reporting period," the company stated. After financing expenses and taxes, MAHLE reported a consolidated net loss of Euro 332 million for 2022 and is aiming to achieve a turnaround in 2023. The equity ratio was 20.2 percent.

Ramping up the product portfolio

Within the framework of its electrification strategy, the company is focusing mainly on electric drives and smart charging. Two new types of electric motors have attracted a strong response from customers: the Superior Continuous Torque (SCT) electric motor is the only electric traction motor available on the market to date that can deliver high power continuously. It is therefore especially attractive for use in commercial vehicles.

The magnet-free contactless transmitter (MCT) electric motor requires no rare earth elements and works extremely efficiently without wear. In MAHLE chargeBIG, the company has a tried and tested charging solution for parking lots available in the marketplace. In addition, MAHLE is working on wireless charging together with Siemens.

The latest electric compressor developed by MAHLE with a rating of up to 18 kilowatts, is one of the most powerful globally. To date, the total order volume for electric compressors has reached Euro 1.4 billion. The company has also developed a battery cooling plate that allows fast charging, long ranges, and long service life for sensitive lithium-ion batteries. MAHLE is also among the top global suppliers of heat pump systems that help reduce the energy consumption of an electric vehicle, allowing the use of smaller, less costly batteries.

In the field of classical drive systems, MAHLE remains a reliable supplier to vehicle and motor manufacturers and provides highly advanced products that boost efficiency. The group supports more green internal combustion engines powered by hydrogen and synthetic fuels and intends to win market shares. “Our customers appreciate our continued support for the internal combustion engine in connection with our strategy,” said Franz. At the end of 2022, the group employed 71,947 people throughout the world.