Valeo is already well established in the ASEAN (Association of Southeast Asian Nations) region, particularly through its Thermal Systems and Comfort & Driving Assistance Systems Business Groups, and employs 4,800 people across eight sites. Approximately 10% of the world’s population lives in the ten member states(1) that make up the ASEAN region and their combined GDP represents the seventhlargest economy in the world. The Group’s headquarters in the region are located in Chonburi in Thailand, but Valeo also has sites in Rayong, and in Purwakarta and Batam in Indonesia, with plans to open another in Malacca in Malaysia in 2016. The Group also has three sites managed by Ichikoh, its Visibility Systems Business Group partner, in Malaysia, Indonesia and Thailand. This emerging automotive market, with only 50 vehicles for every 1,000 people, presents remarkable growth opportunities. Some 3.5 million vehicles, mainly destined for local markets dominated by Japanese automakers such as Toyota and Honda, are manufactured in the ASEAN region, particularly in Thailand (1.8 million), Indonesia (1 million) and Malaysia (600,000). The aftermarket also represents significant growth potential, which prompted the Group to open a division of Valeo Service in Thailand in 2014.
ASEAN: NEW TERRITORIES
DESTINATION ASIA AND EMERGING COUNTRIES Development in Asia, particularly China, and in high-growth potential countries remains one of Valeo’s strategic focuses for the years to come: by 2020, Valeo aims to generate more than one-third of total sales in Asia, with China alone representing 20%. The exceptionally dynamic nature of these markets presents a multitude of opportunities and challenges, which are both sources of inspiration for our engineers and growth engines for the Group. The world’s biggest producer of automobiles with more than 23 million vehicles produced in 2015, China is more central than ever to Valeo’s global ambitions. Valeo grew sales in the country by 8% in 2015, outperforming growth in local automotive production by four percentage points. The Chinese market accounts for 14% of the Group’s total sales. The Group has been active in the country for over 20 years and is now a key player, combining a leadership position with genuine local understanding and culture. This enables Valeo to support both its international customers as they deploy their development strategies in China as well as the country’s fast-growing domestic automakers. In 2015, China accounted for 20% of the Group’s total order intake, of which 41% was booked with Chinese automakers. “THINK GLOBAL, ACT LOCAL” Key to Valeo’s international success are its ability to constantly adapt to customers’ local expectations and a global industrial footprint that enables products to be delivered to the same exacting standards of quality and reliability in all markets. Over the past several years, Valeo has strengthened its industrial footprint and enhanced its Research and Development resources on every continent, enabling it to supply products specifically designed for local markets and also to introduce innovative technologies aimed at reducing CO2 emissions and promoting intuitive driving. Consequently, three of Valeo’s four specialized Development centers are located in Asia – one in India, at the Chennai plant, and two in China, at the Wuhan and Shenzhen plants – to source inspiration from the challenges facing emerging countries and to offer the best solutions for tomorrow’s connected world.
(1) The ten ASEAN member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
VALEO / 2015 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT