Aptiv, a prominent leader in the automotive parts industry, has expressed its intention to increase its presence in the Chinese market by an impressive 50 percent over the next five years. This growth is anticipated to be primarily driven by the increasing demand for new energy vehicles (NEVs) in the region.
In 2023, Aptiv experienced a substantial 12 percent increase in sales in China, with the Asia-Pacific region, including China, contributing a noteworthy 28 percent to the company’s global net sales.
Xu Xiaoying, the operation director of connection systems Asia and plant manager of Aptiv, has unveiled that the company is making significant progress in its localization strategy within China. Their objective involves achieving a remarkable 50 percent expansion of their business within the country over the next five years. Additionally, the company has accelerated its partnerships with Chinese brands, with plans for this sector to account for 70 percent of its overall operations.
As China’s automotive industry undergoes rapid transformation towards prioritising safety, environmental sustainability, and connectivity, Aptiv is seizing the opportunity to expand its footprint within the NEV sector. Accordingly, the company is in the process of establishing a high-voltage connector factory to meet the increasing demands of NEVs.
Furthermore, Aptiv has strengthened its position in Shanghai by establishing its largest global connector manufacturing and R&D base at Aptiv Central Electric (Shanghai) Co. This facility stands as the world’s second-largest supplier of automotive connectors.
Aptiv is spearheading the development of an intelligent factory for automotive connectors, integrating advanced technologies such as artificial intelligence and human-machine collaborative manufacturing. By creating and designing core equipment, high-precision moulds, and intelligent scheduling systems, the company has successfully automated assembly operations, introduced unmanned injection moulding, implemented intelligent three-dimensional warehousing, and optimised in-plant logistics.
Utilizing the power of big data, Aptiv has cleverly devised a digital full-chain traceability system that covers the entire product life cycle—from design and R&D to material input, production, quality inspection, and logistics. These innovative advancements have not only enhanced product development cycles by an impressive 26 percent but have also significantly reduced operating costs by 30 percent.
In conclusion, Aptiv’s ambitious plans to expand its business by 50 percent in China, coupled with its strategic focus on the rapidly evolving NEV sector and technological innovations, positions the company as a force to be reckoned with in the realm of automotive parts and connectivity solutions.