Building a green value chain


In an initial interaction, Jayakumar G, Group President India, Valeo India Pvt. Ltd. talk to Ashish bhatia on the evolution of customer perception leading to changes in the automotive industry.

Q. How do you contribute to reducing CO2 emissions and developing safer driving? What products in the portfolio contribute to this vision?
A. 94% of our turnover comes from technologies that reduce CO2 emissions and improve safety. Ten years ago, Valeo made a commitment to make the reduction of CO2 emissions its growth engine. Thanks to the more than 10 billion euros that we have invested in electrification, we have become the world leader in the field. Both low and high voltage. Almost 60% of our sales now come from technologies that help reduce CO2 emissions. A pioneer and world number one in vehicle electrification, Valeo has the broadest portfolio of technologies to support this revolution. Technologies that span all segments and use cases, from affordable hybrid solutions to the most powerful systems.
Valeo develops electrification technologies and efficient thermal management systems for electric vehicles, but also works on reducing weight and improving efficiency to reduce CO2 emissions. Valeo is committed to achieving carbon neutrality by 2050 and to reaching 45% of its target by 2030. Concretely, this means that by 2030, we will have almost halved our overall carbon footprint. of our value chain, whether it is emissions from our factories, manufacturing processes and energy supply, or emissions from our suppliers and the end use of our technologies.

Improving safety on the roads is certainly the other major challenge for mobility. For a long time, Valeo has developed technologies capable of helping the driver to perceive his environment. Our driver assistance technologies currently equip one in four new vehicles in the world. We were pioneers in this field, with the invention, 30 years ago, of the first ultrasonic parking aid sensor. Since then, we have developed the broadest sensor portfolio in the market, including ultrasonic sensors, radars, cameras and the one and only LiDAR in the automotive market in series production and installed in production vehicles in series.
Another major lever for improving road safety are visibility systems, which include lighting and / or wiping. We are also the world leader in this field. One number sums up the challenge: 72% of fatal road accidents occur at night, when visibility is at its lowest. The headlights that we are currently selling today allow driving with full headlights on in all circumstances, without dazzling the drivers in front. Smart lighting systems will soon go far beyond simply improving visibility. They will completely exceed their original functional perimeter to provide more safety, assistance and driving comfort, drawing the curves of the road, announcing the next turn, reproducing road signs, or even drawing a protected passage on the road. to invite the pedestrian to cross.

Q. Elaborate on the development of the advanced line of linings for clutches (including cast linings), tractor brakes and friction washers?
A. Rising emission standards, improving roads, growing infrastructure and increasing demands for ride comfort from end customers constantly challenge the development of coatings. Increased emissions standards, reduced packaging space, and higher engine speeds in passenger and utility vehicle applications demand high and stable friction at high temperatures and high-temperature clutch coatings. low density. For dry disc brakes on tractors, the high friction coatings help the operator to brake with less pedal effort, reducing operator fatigue and thus increasing productivity in the field. These are some of the recent developments in coatings for clutches and brakes.

Q. What is G5 Clean Tech and have there been any recent iterations you can share?
A. In friction coatings, Generation 5 (G5) technology water is used as a solvent. No other organic solvent is used. This helps to reduce CO2 emissions in the manufacturing process. This is a good example of how Valeo’s commitment to environmental protection is now embodied in the vast expertise in product and process design used to remove hazardous materials from production processes. The Chennai plant is the second facility in the world to implement this process. Valeo has implemented this process at least 10 years ahead of applicable global regulations. In terms of performance, occupants of vehicles adopting the G5 clutch will enjoy improved ride comfort when changing gears due to the suppression of engine vibration and the extremely smooth and smooth clutch action. blows.

Q. By staying on the brakes, how did you optimize the associated emissions for different duty cycles?
A. In the area of ​​brakes, we only operate in the tractor segment. High and stable friction, even at high temperatures, reduces stopping distance. This increases the driver’s confidence in the brakes and prevents partial braking while driving, which saves fuel and therefore lowers emissions. When confidence in the brakes is higher, tractor operators tend to avoid the half-clutch, which reduces fuel consumption.

Q. How do you prioritize the go-to-market strategy, which means responding to different technologies (manual to automatic / single to dual clutch) and vehicle segments on a regional basis in your main target markets? We know that exports have contributed significantly to overall revenues.
A. Valeo has development and manufacturing sites located in all countries. This is based on regional demands and the availability of skilled labor. In India, the automotive market is dominated by manual transmission – on various vehicle formats – three-wheelers, passenger cars, SUVs, MUVs, micro to large trucks, buses and agricultural equipment. Therefore, our factory in Chennai offers dry coatings for manual transmissions and supplies coatings to Valeo, LuK, ZF, Eaton, Exedy and other domestic clutch manufacturers. We also export friction coatings to the world market from Chennai. Exports have grown significantly in 2020 for us despite the covid pandemic, which has contributed to Indian operations revenues. The development of facings for wet applications occurs in Europe.

Q. How do you operate the Chennai R&D center as a global hub with the resulting learnings and efficiencies introduced during the pandemic year?
A. Valeo’s R&D center in Chennai not only meets local development needs, but also the needs of Valeo’s global sites. Our R&D center in Chennai provides technical assistance in various fields: mechanics, simulations, electronics, software and vision systems. Our R&D center in Chennai operationally supported the development of local and global engineering despite the uncertainties caused by the pandemic. Exposure to local and global projects across continents and to various products and processes has helped our engineering teams develop their skills and standardize development activities. This helped the R&D center to cope with the pandemic. Local market demands drive the need to develop skills locally. For example, a manual transmission will last longer in India than in other countries. This makes India, and therefore Chennai, the ideal center for developing dry friction development – for Indian and global needs.

Q. How has your exposure to EO and the secondary market evolved over the past five to eight quarters? What is the composition of income?
A. Valeo has been a significant player in the aftermarket since 2012 and the business has grown steadily with a double-digit compound annual growth rate (CAGR) over the past four years. The Covid-19 pandemic and lockdowns had caused the automotive market to slow down in 2020 in both the original equipment market and the aftermarket. The market should recover in the coming months.

Q. What are the prospects for the foreseeable future?
A. India is already among the top four automotive markets in the world. Changing customer perceptions of safety, health and hygiene in the post-pandemic world will drive the changes in the Indian automotive industry. Two-wheelers and three-wheelers will experience a rapid evolution towards electrification over the next five years. In passenger vehicles, the ECI will continue to coexist with electric vehicles for some time, but with additional measures, including hybridization – increasing their efficiency and reducing emissions. This will give the space for a seamless transformation in the industry – the ICE to EV transformation.
Increased safety awareness and increasing regulatory requirements will require the development of active safety features, including advanced driver assistance systems (ADAS) and driving monitoring systems. Overall, over the next decade we will see a major transformation in the auto industry, which will be greener, safer and smarter. We will also see many new segments emerge for connectivity and first and last mile delivery. ACI

“Valeo is committed to achieving carbon neutrality by 2050 and to reaching 45% of its target by 2030. Concretely, this means that by 2030, we will have almost halved our overall carbon footprint. of our value chain.

“Increased emission standards, reduced packaging space and higher engine speeds in passenger and utility vehicle applications require high and stable friction at high temperatures and coatings. low density clutch. “

“Exports have increased significantly in 2020 for us despite the Covid19 pandemic, which has contributed to revenues from Indian operations. “

“Increased safety awareness and increasing regulatory requirements will require the development of active safety features, including advanced driver assistance systems (ADAS) and driving monitoring systems. “


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