Aptiv (APTV) Goldman Sachs Communacopia + Technology Conference 2024 summary

Bookings and customer mix

• Targeting $35 billion in bookings for 2024, with strong demand in vehicle architecture, connectors, and cable management across automotive and non-automotive sectors.

• Significant growth in China, with 65%-70% of 2024 bookings from local OEMs and a shift in revenue mix expected to reach 70% with China locals next year.

• Strategic focus on top 15 Chinese OEMs, especially those expanding exports to Europe and the Americas.

• Partnerships between Western and Chinese OEMs present incremental opportunities rather than risks.

Technology and product innovation

• Smart Vehicle Architecture (SVA) engagement has expanded from 5 to over 25 OEMs, with commercial opportunities expected in early 2025.

• Gen 6 ADAS platform offers modular, open solutions with 20% cost reduction, strong demand from global OEMs, and flexibility in radar and vision suppliers.

• Radar technology enhanced with AI/ML, reducing need for LiDAR and lowering costs, appealing to cost-sensitive OEMs.

Business segments and growth

• Active Safety business exceeds $3 billion in revenue, growing around 20%, with strong positions in North America and Europe, and growth potential in China.

• High voltage product line slowed in Europe and North America due to EV market trends, but remains robust in China and is well-suited for hybrid platforms.

• Engineered components business generates $7 billion in revenue, with 4%-7% annual growth, driven by automotive, aerospace, and industrial demand.