Aptiv, a leading player in the automotive parts industry, is preparing to increase its business in China by an impressive 50 percent over the next five years, driven by the growing demand from the new energy vehicle (NEV) sector.
The company experienced significant sales growth in China, with a 12 percent increase in the fiscal year of 2023. The Asia-Pacific region, including China, accounted for 28 percent of Aptiv’s total global net sales, underscoring the region’s significance in the company’s overall operations.
Xu Xiaoying, the Operations Director of Connection Systems Asia and Plant Manager of Aptiv, emphasized the company’s commitment to accelerating its localization strategy in China. With aspirations of achieving a 50 percent increase in business within the Chinese market, particularly in its partnerships with Chinese brands, Aptiv is poised for remarkable growth in the region.
China’s automotive industry is rapidly shifting towards safety, environmental sustainability, and connectivity, prompting Aptiv to expand its presence in the thriving NEV sector. As part of this effort, the company is in the process of establishing a high-voltage connector factory, with a specific focus on NEV business development.
Aptiv has established a strong presence in Shanghai, where it is home to the largest global connector manufacturing and R&D base at Aptiv Central Electric (Shanghai) Co. The facility holds the distinction of being the world’s second-largest supplier of automotive connectors, marking a significant milestone for the company’s operations in the region.
Leading the way forward, Aptiv has embarked on the creation of an intelligent factory for automotive connectors, harnessing the power of artificial intelligence and collaborative human-machine manufacturing. By investing in core equipment, high-precision molds, and intelligent scheduling systems, the company has successfully automated assembly operations, introduced unmanned injection molding, implemented intelligent three-dimensional warehousing, and optimized in-plant logistics.
Utilizing the capabilities of big data, Aptiv has implemented a digital full-chain traceability system, which spans the entire product life cycle—from design and R&D to material input, production, quality inspection, and logistics. These advancements have significantly improved product development cycles by 26 percent and led to a substantial 30 percent reduction in operating costs.
As Aptiv sets its sights on substantial growth in China, it is clear that the company’s strategic initiatives and unparalleled innovations will continue to shape the automotive industry landscape in the region, further solidifying its position as a leader in the market.