In a year marked by economic headwinds, regulatory uncertainty, and uneven global demand, German automotive supplier MAHLE posted a resilient financial performance in 2024—demonstrating the strength of its transformation strategy, MAHLE 2030+.
Despite an organic sales decline of 5.6% to €11.7 billion, the company managed to boost its EBIT to €423 million, reflecting an improved margin of 3.6%.
According to MAHLE CEO Arnd Franz, the company’s positive result was the outcome of “hard work and consistent transformation efforts.” Central to that transformation has been a sharper focus on three strategic pillars: electrification, thermal management, and sustainable internal combustion technologies. These areas not only align with emerging mobility trends but also insulate MAHLE from overdependence on any single propulsion path—an important differentiator amid intensifying policy debates on technological neutrality.
Streamlining For Strength
MAHLE’s profitability in 2024 was bolstered by rigorous cost and efficiency measures. The company exited non-core businesses, including its stake in the Behr-Hella Thermocontrol (BHTC) joint venture and its OEM thermostat operations, while optimising its sales, administrative, and production structures. These moves helped reduce debt by €186 million, improve the debt-to-EBITDA ratio to 1.2, and lift the equity ratio to 20.1%—the first increase in five years.
Such financial discipline has given MAHLE the flexibility to stay invested in future-ready technologies. The group spent €630 million on R&D in 2024, representing 5.4% of sales, and recorded over 500 new inventions and nearly 430 patent filings. A key innovation was its bionic high-performance fan, which drastically reduces vehicle noise during battery charging, positioning the company as a key enabler of quiet, efficient e-mobility. It also advanced fuel cell cooling systems and integrated electric axles for heavy trucks—evidence of its growing presence in both battery-electric and hydrogen vehicle segments.
Mixed Segment Performance
While innovation thrived, market conditions weighed on top-line growth across most business units. Thermal Management, the company’s largest segment, declined 9.9% organically to €4.1 billion. Electronics and Mechatronics saw a 5.7% dip, and the traditional Engine Systems and Components business fell 8%. The lone bright spot was the Aftermarket division, which grew by 6.2%, fuelled by over 10% organic growth in Asia-Pacific.
Despite these pressures, MAHLE secured €10.3 billion in new orders in 2024, spanning all powertrain types and vehicle classes. This includes the company’s largest-ever single contract—a €1.2 billion order for a thermal management module—along with major deals for battery cooling and electric compressors.
Looking Beyond Automotive
MAHLE is also extending its expertise into adjacent sectors. The newly formed Lifecycle and Mobility business unit will tap into non-automotive opportunities, leveraging the group’s know-how in compact electric motors and thermal systems to address diverse applications. The company has restructured its group organisation to support faster decision-making and reinforce its regional presence—moves that are expected to streamline operations and enable scalable growth.
Sustainability Front & Centre
MAHLE's progress on environmental targets has also gained recognition. The company reached the prestigious “A list” of the Carbon Disclosure Project in 2024, with a 47% reduction in Scope 1 and 2 CO₂ emissions already achieved toward its 2030 goal of 49%. These results underscore the company’s commitment to sustainable production and emissions reductions not just within its factories but across its product lifecycle.
Policy Risks, Strategic Appeal For Technological Diversity
Despite these achievements, MAHLE remains cautious heading into 2025. Newly imposed US import tariffs and policy rigidity in Europe threaten to undermine industrial competitiveness and employment. CEO Arnd Franz reiterated the need for regulatory frameworks that support technological diversity. He cautioned that the rush to phase out internal combustion engines without considering their potential for clean operation—especially with synthetic and biofuels—could jeopardise millions of jobs in Germany and across Europe.
Franz also called for realistic pathways to carbon neutrality that harmonise climate goals with social and economic stability. 'Two-thirds of our jobs in Europe depend on the internal combustion engine. We need an honest debate on how to achieve decarbonisation while preserving industrial strength,” he said.
Transformation With Tenacity
In many ways, MAHLE’s 2024 performance exemplifies the challenges and choices confronting the automotive supply chain today. The company has stayed the course—investing in innovation, managing costs, and advocating for balanced policies. Its approach signals a maturing understanding that the future of mobility is not monolithic. By betting on both electrification and sustainable combustion, MAHLE is not only hedging against uncertainty but actively shaping a more adaptable, inclusive path to decarbonisation and growth.
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