Vitesco Technologies presents expected business developments for electrification.

Vitesco Technologies, a leading international developer and manufacturer of cutting-edge powertrain technologies for sustainable mobility, announced today at Capital Markets Day 2022 that prospective investors and analysts Announced strategy and projected performance to 2030. Listed on the Frankfurt Stock Exchange from September 2021.

By 2030, electric vehicles will account for over 70% of global passenger car production, with battery electric vehicles (BEVs) accounting for the largest share. says his CEO Andreas Wolf. “Most have components from Vitesco Technologies: e-axles, battery management systems, inverters and many more.”

Photo credit: Vitesco Technologies

In the last two six months alone, Vitesco Technologies has recorded orders worth around €10 billion in electrification projects. More to come. Vitesco Technologies recently won a large order totaling over €1 billion from a global customer in the field of thermal management systems. Thermal management systems are used to regulate the optimum temperature range for high voltage components in battery electric vehicles.

Companies targeting the strong e-mobility market

Vitesco Technologies revealed its expectations for 2026 at Capital Market Day. The company expects its electrification business to generate sales of around €5 billion in his four years, reaching €10 billion to €12 billion by 2030. By 2026 he will be at 40%,” says his CFO Werner Volz. Vitesco Technologies also expects the Group’s adjusted EBIT margin to be 7-9% in 2026, with free cash flow reaching more than his €400 million.

“We aim to achieve these financial targets over the medium term by achieving double-digit EBIT margins in the future Powertrain Solutions business area and increasing profitability in the future Electrification Solutions business area. I am aiming. The electrification business is expected to break-even in his 2024, with the first dividend due in 2023.

Suppliers continue to be key for electrical components

Experts believe that battery electric vehicles will continue to rely on parts from suppliers, especially in powertrain technology, and the parts supplied will be of high quality, if at all. Battery management systems and inverters in particular will be offered more frequently by suppliers such as Vitesco Technologies in the coming years. The company estimates that the share of production contributed by battery management system suppliers will increase by about 10% to about 65% in 2030, while the share of inverters will grow from his 50% to about 70%. expected to rise. About 40% of electric motors are expected to continue to be manufactured by suppliers in 2030.

A Path to Sustainability Through Strategic Partnerships

With the help of strategic partnerships, Vitesco Technologies aims to bring more efficient e-mobility solutions to market while improving access to raw materials. As for suppliers, Vitesco Technologies will hire a new partner, his Infineon, in May to complement its existing cooperation with ROHM Semiconductor. The partnership will allow Vitesco Technologies to tap into more than 50% of his global capacity for silicon carbide wafers, which are essential in semiconductor manufacturing. In terms of customers, Vitesco Technologies won his July a close strategic partner in the form of longtime major customer Renault Group. In the future, the two companies will jointly develop highly integrated and compact power electronics.

Vitesco Technologies is not only dedicated to finding emission-free mobility solutions. Achieving the highest standards of sustainability is at the heart of its mission. Vitesco Technologies has set ambitious goals, aiming to make production fully carbon neutral by 2030 and the entire value chain by 2040. We also use Vitesco Technologies electrification solutions to help our customers achieve their own sustainability goals. “Regardless of the decisions at hand, we are always asking ourselves what the next generation will say,” explains Wolf.