Visteon Corporation Plans to Hire 2000 Engineers in India for Display System Making of Hyundai and Mahindra. Visteon, a global automotive technology business, announced on June 14 that it plans to hire 2,000 people in India over the next five years, primarily in engineering.
Hyundai is Visteon’s most important customer in India. The cockpit display on the new Mahindra XUV-700 is also a Visteon product. Stellantis, Volkswagen, Mazda, General Motors, and Renault are among the global brands served by the company.
According to Lawande, whereas over half of India’s automobile buyers were “value-driven” three years ago, that group will account for no more than 25% of the country’s car consumers in the next half-decade.
“A majority of the market — 60 to 70% — will buy cars in the Rs 10 lakh to Rs 30 lakh category,” he continued, “in a market of 3.5 million units now that will reach 7 million units in the next five years or so.”
In light of these forecasts, Visteon, which is listed on the New York Stock Exchange, aims to quadruple its personnel in India, open new technological centres in Goa, Coimbatore, and Thiruvananthapuram, add another cockpit display factory, and sketch out a strategy to double its sales from the country. ‘A $20 million investment in a cockpit display plant’
“Our second area of investment will be in manufacturing capabilities to support the expansion we’re talking about – we’ll invest in a second facility in addition to the one we have in Chennai,” Lawande said.
The second plant mentioned by Lawande will be capable of producing a million cockpit displays. “Our facility in Chennai cost roughly $40 to $50 million over a period of time, and half of that investment has to be paid upfront,” he added. “So the second plant will be in that area as well, with about $20 million in cockpit displays.”
Visteon’s potential market in India is increasing beyond just one or two names, as more OEMs produce premium-to-high-end goods to suit the need for improved in-cabin experiences.
“”As the market rises, India will account for a double-digit share of Visteon’s revenues,” Lawande predicted. “Today, the market contributes roughly 5% to Visteon’s revenues.” It has the potential to account for 10% of our sales, which would be a terrific goal to reach in the next five years.”
To put things in perspective, Visteon’s global revenues were $2.7 billion last year. By 2025, the company expects to reach $5 billion in revenue. As more OEMs manufacture premium-to-high-end goods to meet the need for greater in-cabin experiences, Visteon’s potential market in India is expanding beyond just one or two names.” “India will account for a double-digit share of Visteon’s revenues as the market rises,” Lawande projected.
“Today, the market accounts for about 5% of Visteon’s income.” It has the potential to account for 10% of our sales, which would be an excellent target to hit in the next five years “”Decades.”
Visteon’s global revenues were $2.7 billion last year, to put things in context. The corporation plans to generate $5 billion in revenue by 2025.
“Due to the semiconductor scarcity, our revenues were down 20 to 25 percent last year,” Lawande added. “We’ve started securing additional supplies and talking to numerous suppliers — so we’re not only reliant on a handful — which has helped us raise our revenues from $2.7 billion last year to around $3.2 billion this year,” he says.
Visteon, like most automakers, expects the supply chain crisis to end by mid-2023, thanks to a greater focus on localization and establishing a homegrown supply chain.
“We already have enough business to generate $4 billion in income this year,” Lawande said, “if we have enough supply.” “We’re being held back due to a supply shortage, but we anticipate to see some improvements in the third quarter.”
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