Vitesco Technologies achieved a significant milestone in 2022 by surpassing the one billion euro mark in turnover with electrification products. The company reported a turnover of 1.1 billion euros, up from 0.9 billion euros in the previous year, and incoming orders of 14 billion euros, of which electrification products accounted for 10.4 billion euros. With an order book of 58.5 billion euros as of December 31, 2022, 46 percent of which was in the electrification sector, Vitesco Technologies is poised to become a major player in the EV market.
In a statement, Vitesco CEO Andreas Wolf said, “The transition to electric vehicles is gaining momentum and is unstoppable now. Three quarters of our orders in 2022 came from the electrification business. That is a new record.” The growth in the Electrification Technology business unit, where turnover increased by 17.6 percent to 692 million euros, was driven by high demand for high-voltage electric drives and power electronics, particularly in China and Germany. The remaining sales of electrification products came from the Electronic Controls and Sensing & Actuation units.
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Although the Electrification Technology business unit is not yet profitable, the company expects to achieve electrification sales of 5 billion euros in the medium term. About 90 percent of this has already been booked in the order book, according to the statement. The Electronic Controls and Sensing & Actuation divisions are already profitable, with turnover of 3.9 billion euros and 3.5 billion euros, respectively.
Despite the high upfront costs for future projects, the Electrification Technology business unit’s adjusted operating result improved to -257.7 million euros from -273 million euros in the previous year. Wolf believes that the trend towards electric vehicles will continue to accelerate, and Vitesco Technologies is well-positioned to meet the growing demand for electrification products.
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“The electrification sector will soon account for the majority of our sales,” he said. “We are committed to supporting the transition to a sustainable mobility future and will continue to invest in electrification products to meet the needs of our customers.
