Electrification to drive Vitesco's growth in 2022

Vitesco Technologies expects its sales this year to grow further from 2021, with its electrification products as the German automotive supplier's major growth engine.

Its sales this year are expected to reach 8.6 to 9.1 billion euros ($9.44 billion to $9.99), up from 8.3 billion euros last year, said Vitesco when releasing its financial statements for 2021 on Friday.

With an increase of 44.6 percent, its business unit Electrification Technology recorded the strongest growth of all Vitesco units last year.

Vitesco said its total order intake reached 11.2 billion euros in 2021, of which 5.1 billion euros came from electrification products.

"For the time being, we expect a moderate recovery in production of passenger cars and light commercial vehicles in our core markets and globally in 2022," said CEO Andreas Wolf.

"We are ideally positioned to participate in this positive trend and to achieve our growth targets," he said.

Europe will see the fastest growth this year in production of passenger cars and light commercial vehicles, with the rate to reach 17 to 19 percent, said Vitesco.

It will be followed by North America, which will see an increase from 15 percent to 17 percent, while China is expected to see a slight increase of around 2 percent year-on-year.

Vitesco said the first half of this year would still be impacted by semiconductor shortages, but it expects a slow normalization of the supply situation in the second half with noticeable effects in the fourth quarter.