AUMOVIO, soon to emerge from Continental’s Automotive division, announced its key financial and strategic targets during its Capital Market Day ahead of a planned listing in September. The company plans to grow sales from €19.6 bn in 2024 to over €24 bn long‑term, while improving profitability and optimising R&D investment.
AUMOVIO expects the per‑vehicle value of its software‑defined and autonomous mobility solutions to expand annually by 4–5% through 2029, outpacing production volumes. With an order intake of €19.3 bn in 2024, the business leverages established relationships with global OEMs. It already generates more than 80% of sales from products ranked among the top three globally in their segments.
The company targets a long‑term adjusted EBIT margin of 6–8%, up from 2.5% in 2024. In the medium term, it wants to reach €20–22 bn turnover, a 4–6% margin and ROCE of 12–15%, ultimately exceeding 16% ROCE.
AUMOVIO will merge development efforts into a centralised technology organisation to reduce costs and streamline innovation. The R&D-to-sales ratio is expected to fall to under 10% by 2027, and below 9% subsequently. The company’s balance sheet is robust: as of 30 June 2025, it holds €1.5 bn in cash, a €2.5 bn credit line, and is debt‑free.
Planned free cash flow growth aims to support dividend payouts amounting to 10–30% of net income in the medium term—a first for the business.
The company continues to streamline operations, shedding non‑core assets such as Zonar and an Italian drum‑brake plant. Its four business areas—Autonomous Mobility, Architecture & Network Systems, Safety & Motion, and User Experience—are positioned to capture growth across emerging vehicle technologies:
“AUMOVIO starts with a strong position in the growth segments for future mobility, an excellent customer base and an already significantly improved profitability. We have a clear strategy for value creation and are well prepared for challenging markets.”
AUMOVIO’s spin-off underscores the tyre and automotive supply chain shift towards software‑defined vehicles, electrification and autonomy. Its strategy to centralise R&D, boost ROCE, and differentiate across sensor, display, and braking domains mirrors trends in smart tyre integration, vehicle connectivity and sustainability as hardware providers adapt to software‑centric ecosystems.
Tagged with: AUMOVIO, Continental spin‑off, software‑defined vehicles, autonomous mobility, R&D efficiency, EBIT margin, vehicle electronics
Disclaimer: This content may include forward-looking statements. Views expressed are not verified or endorsed by Tyre News Media.
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