VIA Optronics: Capitalizing on EV Interior Innovation Through Pillar-to-Pillar Displays and China Localization

The electric vehicle (EV) revolution is not just about propulsion; it's redefining the in-car experience. As automakers prioritize sleek, tech-driven interiors, pillar-to-pillar displays—seamless screens spanning a vehicle's dashboard—are becoming a hallmark of premium EVs. Amid this shift, VIA Optronics AG (VIA3) is positioning itself as a key player, leveraging its optical bonding expertise and aggressive localization strategy in China's booming EV sector. Recent partnerships, technological advancements, and production milestones suggest the company is well-poised to capitalize on this trend, though execution risks remain.

The Pillar-to-Pillar Play: Securing EV Interior Leadership

VIA's recent win with a Tier 1 Chinese EV manufacturer (announced in December 2024) marks a pivotal step. The contract involves supplying 24-inch pillar-to-pillar display solutions, combining two screens under a single cover glass. This design not only enhances aesthetics but also improves sunlight readability—a critical feature for automotive displays—thanks to VIA's proprietary optical bonding technology.

Production of the first version has already begun, with the second iteration slated for mid-2025. The company's “produce locally for local markets” strategy is central to this rollout. By establishing manufacturing capacity in China, VIA reduces supply chain latency and aligns with the preferences of domestic automakers, who prioritize localized suppliers for cost efficiency and regulatory compliance.

Joint Venture with Autolink: Building Smart Cockpit Ecosystems

In May 2025, VIA deepened its China ties by forming a joint venture, Wuxi Turing Intelligent Display Technology Co., with Autolink Information Technology. This partnership merges VIA's display expertise with Autolink's Electronic Control Unit (ECU) capabilities to develop system-level smart cockpit solutions. The venture's focus on integrating displays, touch sensors, and camera modules positions it to meet the rising demand for cohesive, human-centric interfaces in EVs.

The venture's dual approach—manufacturing in China for both domestic and export markets—is a masterstroke. It allows VIA to tap into China's massive EV production base while supporting global OEMs seeking cost-effective, high-tech components.

Tech Differentiation: Optical Bonding and Camera Innovation

VIA's optical bonding technology is its crown jewel. By eliminating the air gap between the display and protective glass, this process reduces glare and enhances clarity in bright environments—a must for automotive applications. The company has also expanded its portfolio with camera modules for advanced driver-assistance systems (ADAS), such as e-mirror and surround-view systems. Partnerships with firms like Immervision and Antolin have accelerated these efforts, ensuring VIA's displays are not just visually appealing but functional in complex driving scenarios.

FY24/25 Outlook: Catalysts and Caution

Despite a 17% drop in 2024 sales to €100–110 million (vs. €133.3 million in 2023), VIA's gross margin improved by 8.4%, reflecting cost-cutting and higher-margin smart cockpit projects. Management projects 2025 sales of €75–90 million, citing a shift to a consignment stock model with a major customer. While this reduces upfront revenue visibility, it aligns inventory with demand, potentially mitigating overproduction risks.

However, the lower revenue guidance underscores the challenges of transitioning to new business models. Investors should monitor production ramp-up timelines for the second pillar-to-pillar display variant and the joint venture's output capacity. A visual of VIA's revenue trends could help gauge progress:

Risks: Supply Chain and Market Competition

While VIA's strategy is promising, execution is critical. The consignment model could strain cash flow if demand for the major customer's EVs wanes. Additionally, competitors like LG Display and Continental are also vying for smart cockpit contracts, raising the stakes for cost and innovation. Geopolitical risks—such as China's EV subsidy policies or trade tensions—could also disrupt supply chains.

Investment Thesis: Long-Term Bet on EV Interior Tech

For investors with a 3–5 year horizon, VIA presents an intriguing opportunity. The pillar-to-pillar display segment is nascent but poised for rapid growth as EVs emphasize interior tech. VIA's early wins with Chinese automakers and its Wuxi joint venture give it a head start. However, the stock's near-term performance may hinge on the consignment model's success and the joint venture's scalability.

Bottom Line: Investors should consider a position in VIA if they believe in China's EV dominance and the smart cockpit's role in defining next-gen vehicles. But proceed with caution until production and supply chain hurdles are proven manageable.

The EV industry's shift toward immersive interiors is no passing trend. As automakers prioritize tech-forward cabins, companies like VIA Optronics that master both innovation and localization will lead the charge. While risks linger, the strategic moves outlined here suggest the company is primed to turn challenges into opportunities—if it can execute flawlessly.