Valeo Expands Electrification and ADAS Manufacturing in India

In electric mobility, advanced driver assistance systems (ADAS) and AI-enabled automotive engineering, local manufacturing capacity and R&D capability are central to scaling next-generation vehicle platforms. Valeo has announced plans to invest more than €200 million in India in the coming years as part of its Elevate 2028 strategic plan, expanding production, engineering and localization to support both domestic and global OEM programs.

The investment aims to triple Valeo’s sales in India to approximately €700 million by 2028 while preparing for further growth beyond that horizon. The strategy leverages India’s accelerating electrification and increasing adoption of AI-driven automotive technologies.

Electrification manufacturing and localization
Valeo is strengthening its industrial footprint to support xEV platforms across passenger vehicles, light utility vehicles and small mobility segments.

At its Pune facility, the company has commissioned a new plant and dedicated e-axle production lines to support a major electrification program with Mahindra & Mahindra. Valeo will supply electric powertrains for vehicles developed under Mahindra’s “Born Electric” platform, along with integrated onboard charger combo units that combine onboard charger, DC/DC converter and power distribution unit (PDU). The total order value associated with this partnership is close to USD 1 billion.

In the two- and three-wheeler segment, Valeo has entered a collaboration with Atul Greentech Private Limited and Honda Power Pack Energy India Private Limited. The initiative combines Honda battery technology, Valeo’s compact powertrain unit and Atul’s three-wheeler vehicle expertise to support urban electric mobility adoption.

Valeo is also introducing a new generation of small mobility generators using rare-earth-free magnet motors, targeting India’s high-volume two-wheeler electrification market. The design reduces dependency on rare-earth materials while supporting scalable production.

Expansion of ADAS manufacturing in India
As demand grows for ADAS in both passenger and commercial vehicles, Valeo is expanding local manufacturing and engineering capacity.

The Sanand plant in Gujarat currently supplies ultrasonic sensors to major OEMs in India. As part of its expansion, Valeo is implementing new camera production lines scheduled to begin production by mid-2026. This strengthens the local ADAS supply chain and supports scalable deployment of perception systems in Indian vehicle platforms.

In addition, Valeo and Hero MotoCorp have announced a strategic collaboration on Advanced Rider Assistance Systems (ARAS) for two-wheelers. The program combines Valeo’s radar and smart camera technologies with Hero’s local vehicle integration expertise. Several proof-of-concept systems have already been developed to enhance rider and pedestrian protection.

AI-driven R&D and software engineering
Valeo is increasing the role of artificial intelligence in research and development activities to improve engineering efficiency, reduce validation time and optimize cost structures across the value chain.

The Group Technical Center in Chennai, supported by a satellite center in Bangalore, employs more than 3,300 engineers and contributes to global electrification and ADAS programs. The facilities support software development, AI-enabled simulation and system validation, as well as in-house testing through expanded laboratory capabilities.

This R&D footprint enables localized engineering support while contributing to Valeo’s global product development pipeline.

From automotive systems to data center cooling
Beyond automotive applications, Valeo is leveraging its thermal management expertise in collaboration with 2CRSi to develop liquid cooling solutions for edge data centers. Established in November 2025, the partnership focuses on an autonomous immersion-cooled edge compute solution designed for outdoor environments.

A primary application is supporting 5G infrastructure deployment in India, where Valeo provides server casing and thermal management systems optimized for energy efficiency and environmental resilience.

Industrial footprint in India
Valeo has operated in India since 1997 and currently runs six production sites located in Chennai, Pune, Sanand and Gurgaon, along with global R&D centers in Chennai and Bangalore. The company employs more than 7,500 people in India, with over half engaged in engineering roles supporting global development and manufacturing programs.

Through localized electrification manufacturing, ADAS production expansion and AI-enabled R&D, Valeo is aligning its Indian operations with the technical requirements of next-generation electric and intelligent mobility systems.

www.valeo.com