French auto component supplier Valeo plans to invest USD100 million in the next 2-3 years in its Indian operations. According to a report by The Economic Times, the company plans to hire more than 1,000 engineers to support its local and global operations. "The Indian middle class is growing fast and their spending power is going up while new regulations are going to add value to our products," André Aschenbroich, chief executive of Valeo, told the newspaper. "We are planning to hire engineers in software and also in production to support our global markets."
Significance: The company's annual revenue from Indian operations is around USD350 million and it expects the business to double in the next 2-3 years. The investments mentioned above will be made towards this aim. Valeo's focus area in India is low-cost and high-end mild hybrid systems. While the company already supplies its low-cost mild hybrid systems to Maruti Suzuki and Mahindra & Mahindra (M&M), it is planning to introduce three new hybrid solutions in the next 1-2 years. Mild hybrid solutions help to reduce emissions and save fuel by turning off the engine when the car is coasting, braking, or stopped, and restarting when required. Amid the growing awareness of and action to tackle rising pollution levels in major cities in India, these solutions represent the low-hanging opportunities for automakers and suppliers to reduce emission levels.
