Gestamp Aims for Over 50% EV Revenue by 2027

Image Courtesy: Gestamp

Gestamp, a leading automotive metal component manufacturer, is projecting that electric vehicles (EVs) will account for more than 50% of its revenues by 2027. The company unveiled its 2023-2027 Strategic Plan during its second Capital Markets Day, outlining its strategy to capitalize on the ongoing transformation of the mobility industry.

With the global electric vehicle production anticipated to quadruple over the next four years, Gestamp sees the growing demand for EVs as a pathway to expanding its market share. The specialization required by original equipment manufacturers (OEMs) in the design and production of EVs offers Gestamp a chance to solidify its position in the market.

Gestamp’s growth roadmap emphasizes maintaining momentum by aligning with the mobility industry’s transformation. The company intends to replicate the growth it achieved between 2017 and 2022, during which it increased components produced per vehicle by over 30%.

A major focus for Gestamp is supporting sustainability and responsible practices in the automotive industry. As electric vehicles become a substantial portion of the market, the company aims to address the challenge of reducing CO2 emissions. It anticipates that 41% of vehicles produced in 2027 will be electric, reaching a total of 38 million EVs.

Gestamp’s commitment to sustainable mobility is evident in its product innovations, such as Battery Boxes, Lightweight Solutions, and Joining Technologies, showcased at Auto Shanghai 2023. The company aims to contribute to sustainable mobility through partnerships and its expertise in EV-related components.

Furthermore, Gestamp’s dedication to a circular economy model focuses on using recycled steel to reduce emissions in the production process. The integration of scrap management into its strategy, along with the acquisition of Gescrap, positions the company to optimize the usage of quality steel scrap in its production chain.

Francisco J. Riberas, Executive Chairman of Gestamp, emphasized their readiness for the sustainable mobility challenge: “Our key strengths will allow us to leverage on the mobility electrification and become the Partner Supplier to our customers.”

The company’s commitment to environmental, social, and governance (ESG) goals is highlighted in its Strategic Plan, aiming for full decarbonization targets in Scopes 1 and 2 by 2045. Gestamp’s global presence, with operations in 24 countries, emphasizes its dedication to being at the forefront of sustainability in the automotive industry.

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