Continental’s Automotive group sector, which is due to begin operating as the independent listed company AUMOVIO in September, today announced its objectives and strategy as part of its Capital Market Day. Specifically, AUMOVIO plans to boost its sales to over €24 billion in the long term (2024: €19.6 billion). To do this, the company will build on its global positioning in development and production, established customer relationships worldwide as well as its clear focus on high-growth and value-accretive technologies for the software-defined vehicle and safe, exciting, connected and autonomous mobility solutions. The transformation programs that were initiated in recent years and continue to be pursued today have already gone a long way to improving earnings. As well as focusing its portfolio, for example by selling the fleet management solutions provider Zonar and the drum brake plant in Italy, the electronics and technology company is creating a solid foundation for increasing future value and profitability – despite the challenging market environment. In the long term, AUMOVIO aims to achieve an adjusted EBIT margin of 6.0 to 8.0 percent (2024: 2.5 percent).

“We are ready for our stock market debut in September,” said AUMOVIO CEO Philipp von Hirschheydt in Frankfurt on Tuesday. AUMOVIO will start from a strong position in the growth segments for the mobility of the future, backed by an excellent customer base and already significantly improved profitability. We have a clear strategy for increasing value and are well equipped to take on the market challenges that lie ahead.”

Promising growth potential for AUMOVIO

Based on a market analysis by Berylls, AUMOVIO expects the value of its solutions per vehicle in the company’s product segments to grow by an average of 4 to 5 percent until 2029 – and thus much faster than the number of passenger cars and light commercial vehicles produced globally in this period (based on the market outlook from S&P Global Mobility). Building on established customer relationships with almost all leading vehicle manufacturers worldwide, the future AUMOVIO already recorded an order intake of €19.3 billion in 2024.

AUMOVIO has implemented a comprehensive strategy program to support its value and growth trajectory as an independent company. The program has three strategic objectives:

AUMOVIO is to lead the market with pioneering, future-proof products. Products with a top three market position worldwide already account for more than 80 percent of global sales. AUMOVIO intends to expand this share with the help of its strong technologies in all profitable product segments.

AUMOVIO is to transform into a high-performance organization. This is underpinned by measures to further optimize the portfolio, improve processes, reinforce operational excellence and lower costs.

AUMOVIO is to deliver on its financial targets. This strategic pillar is driven by the long-term ambition of creating sustainable value for AUMOVIO’s future shareholders.

Strong balance sheet and solid liquidity will help increase value

AUMOVIO is set to start its independence with a strong balance sheet and no financial debt. As of June 30, 2025, the company has cash funds of €1.5 billion and a credit facility of €2.5 billion and remains committed to maintaining solid capital resources and improving cash flow. In the medium term, AUMOVIO aims to generate sales of €20 billion to €22 billion, an adjusted EBIT margin of around 4.0 to 6.0 percent and a return on capital employed (ROCE) of around 12 to 15 percent. In the long term, the company is targeting sales of more than €24 billion, an adjusted EBIT margin of 6.0 to 8.0 percent and ROCE of over 16 percent. As its earnings situation improves, AUMOVIO plans to distribute 10 to 30 percent of net income attributable to the shareholders as dividends in the medium term.

Leading global technology company positioned for the mobility of the future
In its innovation processes, AUMOVIO will combine strong customer focus with the synergies offered by a centralized technology organization (TO) that supports the entire product life cycle – from the initial idea through to volume production – with innovations, technologies and operational excellence. The TO will ensure a holistic, collaborative approach to innovation and foster operational excellence in the business areas’ research and development activities. By leveraging synergies in development work, standardization and process optimization, centralizing purchasing and improving supply chains, the goal is to improve research and development, make it more efficient and harness business areas’ full potential. In turn, the aim is to reduce the R&D ratio (the ratio of research and development expenditure to sales) to below 10 percent by 2027 and to less than 9 percent in the long term.

SOURCE: Continental