France-based car parts supplier Forvia said on Monday it had struck new deals with BYD and Xiaomi, sending its shares up 10%, Reuters reported.
Forvia hopes its new contracts with Chinese manufacturers will help it meet waning auto demand from domestic manufacturers, Newswire reported. It has also struck deals with Chinese auto makers Li Auto and Chery, Newswire reported.
“Xiaomi is now one of the major telcos entering the EV and car market, and it’s great that we are able to expand our reach to Chinese manufacturers with the latest products,” Forvia’s finance chief Olivier Durand said at an investor conference.
The company said it expects to outperform automotive production in China in 2025, following a drop in sales in the third quarter, the newswire said. AlphaValue analyst Adrian Brassi considered the target ambitious, adding that it would “depend entirely on Forvia’s ability to increase its exposure to Chinese carmakers.”
In late September, Forvia cut its annual sales and profit forecasts for the second time in three months, citing weakness in the European and North American markets and delays in China, Reuters reported.
Forvia shares surge as it strikes new supply deals with Xiaomi and BYD: Report
