Valeo has reported total sales for the first half of the year came in at 10,660 million euros, down 4.1% compared with first half 2024.

It said changes in exchange rates had a negative 1.2% impact, primarily due to the increase in value of the euro against major international currencies, particularly in the second quarter.

For the full year 2025, the company lowered its sales projection to €20.5bn (previously €21.5bn to €22.5bn) although it kept EBITDA and operating margin projections unchanged and said that cost reduction measures would counter other headwinds.

Net income for the first half was down to €104m from €141m in the same period last year.

Suppliers to the major OEMs are threatened with downward pressure on their margins as the OEMs are directly impacted by higher duties on US imports.

Christophe Périllat, Valeo’s Chief Executive Officer said: “Cost-cutting measures also made a decisive contribution to improving our financial performance. Administrative costs were down by 5%, investments by 23%, and gross R&D expenditure by 11%.

“These solid results were achieved in an environment where the strong growth of Chinese automakers is rapidly changing the global mix. We very quickly took steps to accelerate our exposure to these customers. In the first half of the year, we recorded major wins, with order intake from Chinese automakers accelerating to almost three times our sales.”