Business

Vitesco Technologies outlines its anticipated business expansion for electrification

Vitesco Technologies received orders for about €10 billion in electrification business in only the last two six-month periods.

Vitesco Technology, a leading international developer and manufacturer of cutting-edge powertrain technologies for sustainable mobility, presented its current strategy and predicted business performance through 2030 to prospective investors and analysts. Since September 2021, the company has been listed on the Frankfurt Stock Exchange.

  • Projected organic growth in electrification sales: to a total of €5 billion in 2026, to a total of €10 to €12 billion by 2030
  • E-mobility: orders worth approximately €10 billion received within one year (HY2/2021 and HY1/2022)
  • New order intake: major order for thermal management worth more than €1 billion received
  • Expectation for 2030: electric vehicles will account for more than 70 percent of passenger car production

Electric vehicles will account for more than 70% of worldwide passenger car production by 2030, with battery-electric vehicles (BEVs) accounting for the lion’s share.

“In the coming years, we will witness an ever-expanding spectrum of electric automobiles, The vast majority will include Vitesco Technologies components such as e-axles, battery management systems, inverters, and a variety of other items.”

CEO Andreas Wolf predicts.

Vitesco Technologies received orders for about €10 billion in electrification business in only the last two six-month periods.

And it doesn’t stop there: Vitesco Technologies just received a big order in the field of thermal management systems from a global customer worth more than €1 billion.

The thermal management system in battery electric vehicles is used to regulate the optimal temperature range for high-voltage components.

Company targeting strong e-mobility market

At the Capital Market Day, Vitesco Technologies outlined its plans for 2026. The corporation anticipates its electrification division to earn roughly €5 billion in sales over the next four years, rising to between €10 and €12 billion by 2030.

“We’re talking about high organic growth in electrification, which means a 40% yearly rise up to 2026,”

adds CFO Werner Volz.

Vitesco Technologies further anticipates that the Group’s adjusted EBIT margin would be between 7 and 9 percent in 2026, with free cash flow exceeding €400 million.

“We want to meet these financial targets in the medium term by achieving a double-digit EBIT margin in the future ‘Powertrain Solutions’ business area and increasing profitability in the future ‘Electrification Solutions’ business area, In 2024, the electrification industry is predicted to break even. The first dividend payment is scheduled for the fiscal year 2023”.

Volz added

Suppliers will remain key for electrical components

Experts predict that battery-electric vehicles will continue to rely on supplier parts, notably in powertrain technology, with fewer but higher-quality components supplied.

In the next years, providers such as Vitesco Technologies will deliver battery management systems and inverters considerably more regularly.

According to corporate projections, the share of production produced by suppliers for battery management systems is expected to rise by around 10 percentage points to around 65 percent in 2030, with the share for inverters rising from 50 percent to roughly 70 percent during the same period.

It is expected that suppliers would continue to manufacture roughly 40% of electric motors even in 2030.

The road to sustainability with strategic partnerships

Vitesco Technologies seeks to bring even more efficient e-mobility solutions to market through strategic alliances, while also enhancing its access to raw materials.
In terms of suppliers, Vitesco Technologies added a new partner, Infineon, to its existing cooperation with ROHM Semiconductor in May.
Vitesco Technologies now has access to more than half of the global capacity for silicon carbide wafers, which are required for semiconductor manufacture.
Vitesco Technologies secured a close strategic partner in the form of its long-standing important account, Renault Group, in July. In the future, the two companies will collaborate to produce highly integrated and small power electronics.
Vitesco Technologies is not only committed to developing zero-emission mobility solutions. At the heart of its purpose is achieving the greatest levels of sustainability.
Vitesco Technologies has set lofty goals for itself, aiming to have its entire value chain carbon neutral by 2030 and its output carbon neutral by 2040. Using Vitesco Technologies electrification solutions, the company also assists its customers in achieving their own sustainability goals.

“Regardless of the situation at hand, we always ask ourselves what the future generation would say.”

Wolf says,
Vitesco Technologies is a world-class international developer and manufacturer of cutting-edge drive systems for environmentally friendly transportation.
Vitesco Technologies makes clean, efficient, and cheap transportation a reality by providing intelligent system solutions and components for electric, hybrid, and internal combustion drive systems.
Electric drives, electronic control units, sensors and actuators, and exhaust aftertreatment solutions are all part of the product line.
Vitesco Technologies expects to achieve €8.3 billion in revenue in 2021. It employs roughly 37,000 employees across 50 locations. The company’s headquarters are in Regensburg.
This article was shared with Prittle Prattle News as a Press Release.
Must Read – VingaJoy launches
Follow Us: Facebook Instagram | Twitter YouTube | LinkedIn Pinterest Tumblr

Related Posts

1 of 1,082