Vitesco Technologies targets break even by 2024
Vitesco’s eMobility components have scored the drive supplier orders worth around €10 billion in the last two and a half years. Vitesco expects the electrification business to break even in 2024 as the German supplier lays out its business strategy for this decade.
Vitesco, which was listed on the Frankfurt Stock Exchange last year, announced at its Capital Markets Day this week. The German supplier expects the electrification business to generate around five billion euros in 2026. By 2030, the company forecasts 10 to 12 billion euros. “We are talking about strong organic growth in electrification, meaning an annual average increase of 40 per cent up to 2026,” envisages CFO Werner Volz.
The division will likely break even in two years. Because: “In the years to come, we will see an ever-growing range of electric vehicles,” said CEO Andreas Wolf. “The majority will have Vitesco Technologies components on board: e-axles, battery management systems, inverters and numerous other products”.
Such as a significant order currently received for BEV thermal management and expected to bring Vitesco another billion euros. The company does not disclose the client.
As a supplier, Vitesco Technologies is concerned about whether the current trend towards in-house integration among manufacturers will continue. Especially with battery cells, more and more OEMs are entering large-scale production. But at the HQ in Regensburg, the company is convinced that “battery-electric vehicles will continue to depend on parts from suppliers, particularly in powertrain technology, with fewer but higher quality components being supplied”. According to company forecasts, the suppliers’ share of production will remain at around 40 per cent for e-motors until 2030, rise from about 55 to 65 per cent for battery management systems and climb from 50 to approximately 70 per cent for inverters.
Meanwhile, Vitesco is working on the vertical integration of the value chain. There is the cooperation with Infineon on the supplier side, agreed in May, and the partnership with Renault on the customer side, agreed upon in July.
In parallel, the company is pursuing the implementation of sustainability goals it has set itself. For example, Vitesco wants to achieve CO2 neutrality in its production by 2030 and across the entire value chain by 2040.
With reporting by Cora Werwitzke, Germany.
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