Valeo says it expects China to surpass France and become its largest market in about 2-3 years, due to an aggressive expansion strategy.
French supplier Valeo says he sees its annual sales in China doubling those in 2011 by 2015. In 2012 the company’s sales in the Asian country surpassed 1.24 billion euro and accounted for 10% of its global revenues. The company has 22 plants in this region and it manufactures here thermal systems, driver assistance systems and powertrain components.
“Valeo’s long-term strategy is to expand its business in China and enable it to match the size of its European business,” the company said in a statement.
Valeo also has three research centers and 10 product development centers in China. The company wants to add 1,500 engineers and managers in the country to support its business expansion.
The auto-parts maker begins to focus on comfort, safety and environmental technologies, part of its plan to increase margins. In 2012 the company promised to double revenue from fuel-saving parts, reaching 1 billion euro by 2013, and a 30% return on capital.
“With all the investment we’ve done with new products and in new territories, we’re able to compensate the downturn of Europe,” said Chief Executive Officer Jacques Aschenbroich.