Continental aims to more than double component sales in China to EUR10bn by 2020, from EUR4.5bn in 2015, according to local reports quoting company executives.

Ralf Cramer, president & CEO of the supplier's Continental China unit said the Chinese automotive industry is "transforming" itself into an innovator and that it is moving from volume to value-added.

He said Continental, with its broad range of automotive chassis systems and parts, brings advanced and innovative technologies to China. This is expected to drive the company's strong growth in the world's largest vehicle market over the next five years.

The company announced this week it would build a new R&D centre in Chongqing to help it target growing vehicle production in China's western provinces. It is scheduled to become operational by 2018 and employ 400 people by 2020 and 1,000 by 2025. 

The new R&D centre will have the capability for system engineering, software development, electrical and mechanical engineering and test capabilities for electronics and new energy vehicles.

Continental's global sales reached EUR39.2bn last year, of which 11% were generated in China.

The Asia-Pacific contribution to Continental's global revenues is expected to rise to 30% by 2020, from 20% last year.