Auto electronics supplier Visteon reported ‘weaker than expected’ sales in China in its Q2 2024 results call, but said the Asian region “provides significant potential.”
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Visteon President and CEO Sachin Lawande added during the call that carmakers continue to “prioritise larger and more sophisticated displays” in the cockpit.
Sales in Asia, outside of China, outperformed the market due to the rollout of the firm’s SmartCore programs with OEMs such as Mahindra.
SmartCore combines the functions of multiple electronic control units (ECUs) into a single box, and functions as the ‘brains’ for every display function across a vehicle’s instrument panel and into passenger areas.
“This [Asia] region provides significant potential for both passenger vehicles and two-wheelers, providing further customer and end-market diversification,” Mr Lawande said.
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By GlobalDataVisteon said China was a weak spot wher it has lost market share. Mr Lawande also said its largest domestic customer Geely, where it has most of its business with premium and high value brands, did not do as well in the market as expected.
The firm said it sees the launch of new products as a primary driver for sales growth. Digital cluster and SmartCore represented half of these launches, mostly with OEMs in Asia, “supporting our goal of growing out business with these currently under-represented carmakers in our portfolio,” Mr Lawande said.
Visteon products launched on 41 vehicle models, across 17 OEMs, in the first half of the year. A key second quarter launch included a digital cluster for the Toyota Camry in North America and Japan. There was also a centre information display for the Mazda MX-30 crossover and a digital cluster for the Porsche Macan.
Lawande continued: “I’m very pleased with our momentum we’re building in Asia,” citing that 60% of Visteon’s first half launches were in the region, excluding China.
“Many OEMs outside of China have historically not been a meaningful part of our customer base. For example, Toyota, Honda, Hyundai, and Suzuki. These OEMS produce a large number of vehicles annually, and represent a significant opportunity of Visteon.”
Visteon ups Q2 sales and profit
