Software at the core of Valeo's future India growth

Valeo is increasingly operating as a software-centric company in India, according to its global CEO Christophe Périllat, as electrification and advanced driver assistance systems drive higher embedded intelligence per vehicle.

“We are very much a software company in India,” Périllat said, noting that more than 1,000 of Valeo’s over 7,000 employees in the country are software engineers.

Software at the core of growth

India’s automotive market is entering a phase of rising technology intensity. SUVs account for more than 60 percent of new vehicle orders, while electrified vehicles represent about 4 percent of sales and are expected by Valeo to approach 25 percent by 2032, including hybrids.

Simultaneously, tightening safety norms anticipated around 2028 are expected to accelerate deployment of ADAS features such as automatic emergency braking and lane assistance systems.

“The car will be electrified, the car will be safer, and the car will be more and more software,” Périllat said, outlining the three structural shifts shaping the market.

Electrification and ADAS driving integration

Under its Power division, Valeo is localising electric motors, inverters, DC-DC converters and battery cooling systems in India. Electrified products already account for about 25 percent of the division’s India revenue.

In parallel, the Brain division is ramping up ADAS localisation. Parking sensors are already manufactured locally, and camera production is being industrialised with manufacturing scheduled to begin in 2026. Radar localisation will follow as volumes scale.

Both portfolios rely heavily on embedded software, sensor fusion and control algorithms, reinforcing the software-centric nature of Valeo’s India operations.

Investment to scale capability

To support this transition, Valeo will invest more than €200 million in India over the next three years to expand manufacturing capacity and deepen localisation.

Valeo operates six production sites across Pune, Chennai and Sanand, supported by a major R&D centre in Chennai. As software and electronics content per vehicle rises, India’s strategic role within Valeo’s global structure is expected to grow beyond its current 1 percent revenue contribution.

For Valeo, India is no longer defined solely by manufacturing footprint. It is increasingly defined by its software engineering depth and alignment with the future of electrified, safety-focused mobility.