The global auto industry is recalibrating its electrification plans as China grapples with slowing EV demand, Europe rethinks its 2035 combustion ban, and the US remains split between hybrids and full-electric models. Valeo Power Division CEO Xavier Dupont sees India as the standout opportunity in this shifting landscape.
“For the local market, the biggest growth will be in India… perhaps also in South America, but India, for me, will be the market with the biggest growth in EVs,” he told Autocar Professional in an exclusive interview at the IAA Mobility Show 2025 in Munich.
Why India is different
India is not just another emerging market anymore. It is the world’s largest two- and three-wheeler market, with passenger car sales crossing 4.3 million units last year. It is on course to become the third-largest auto market in the world. With EV adoption still in single digits, the runway for growth is massive.
Policy nudges are helping. The recent 10% GST cut on small cars and two-wheelers has improved affordability. EVs already benefit from a 5% GST rate — among the lowest globally. “It was two weeks ago, and it is perfect for the growth of the business… for two-wheelers, for all — exactly, it’s perfect,” Dupont notes.
Valeo’s India footprint
Valeo is already embedded in India’s EV journey. Through its Power Division, it supplies 100% of Tata Motors’ and Mahindra’s BEV power electronics and electric motors. These two automakers together command more than 80% of India’s passenger EV sales.
Globally, Valeo is a Tier-1 leader in electrification, with its Power Division contributing €12 billion to group revenues of €22 billion (FY2024). India, however, still represents a single-digit share. Dupont wants to change that.
“With the CapEx and human resources we are investing, I expect to secure a minimum of 30% market share in India. If we achieve this organically, it will already be a strong outcome,” he says.
Valeo is also eyeing new business with Maruti Suzuki and Hyundai and is in early discussions with other global OEMs developing their India EV strategy.
Engineering and AI
Valeo has long relied on India as a technology base, but the AI shift is making the country more strategic than ever. India produces over 1.5 million engineering graduates annually and has emerged as a software and R&D hub for global OEMs and suppliers.
“What is most important for me is to have a great team, because you have good engineers, you have good universities, and, at the end of the day, for us, it’s a real pleasure to integrate new competencies with a strong willingness to grow. I consider that India, in the next 10 years, will become the place to be for the growth of automotive,” Dupont explains.
Valeo’s engineers in India are already using AI to simulate thermal products, design AI-based headlamps, and optimize software for power electronics. “AI, for us, is a real opportunity… If AI is managed smartly, we will be winners in the future,” he adds.
India in the global EV puzzle
China: “China is going more and more toward pure EVs, even though there is a balance today between PHEV, range extenders, and pure EV.”
Europe: “For Europe, normally, at the end of 2035, combustion engines are strictly forbidden. I think things will move, and we will continue to have a smart hybridization… plug-in hybrid.”
India: “The main trend will be EVs. Surely you could have some range extender or hybrid solutions, but infrastructure is changing quickly, so I believe in pure EV.”
This makes India not just a consumption story but a global test lab for cost-competitive EVs that can be replicated across Asia, Africa, and Latin America.
Two- and three-wheelers
India’s two- and three-wheeler dominance is critical to Valeo’s plans. Over 19 million two-wheelers were sold in FY2025, compared to fewer than 4.3 million cars, with EV penetration around 7% but rising fast.
Valeo is working on dedicated electrification solutions for these segments. But reliability, Dupont says, will be decisive. “If customers have to go to the garage every month because of quality or software issues, the future will not be good. For us, quality comes first, then the right price and partnerships,” he says.
Looking to 2030
Dupont visits India two to three times a year and is struck by the pace of change. “Every year, I come to India two or three times, and I can see the country changing each time I come. I cannot imagine what it will be like in five years, but I am sure it will be a big change.”
By 2030, Valeo expects India to be a major contributor to its Power Division revenues, moving from a single-digit share to double digits and expanding beyond Tata and Mahindra to include every large OEM in the market.
The big picture
For Valeo, India is emerging as:
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The fastest-growing EV consumption market
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A strategic engineering and AI hub
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A future export base for affordable EV solutions
As Xavier Dupont summed it up at Munich:
“India, for me, will be the market with the biggest growth in EVs.”
By the numbers: Valeo & India (FY2024–25)
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Valeo Group revenues: ~€22 billion
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Power Division revenues: €12 billion (~55% of total)
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India contribution: Low single digits (aiming to double by 2030)
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Tata + Mahindra EV share: >60% of India’s PV EV market
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India’s PV market FY2025: ~4.3 million units
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India’s EV penetration: ~3% PV, <7% two-wheelers
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India’s two-wheeler sales FY2025: ~19.6 million units
