Faurecia says it expects to double its share of the Chinese complete seating market, despite a slight slowdown in the country’s extraordinary growth rate of late.
Despite the temporary dip in China’s performance, Faurecia maintains it continues to be successful in the country as luxury and premium brands outperform the lower end of the market.
“The main drivers for the Chinese automotive market are very favourable for Faurecia,” said executive vice president, strategy, Herve Guyot, at an Investor Day in London this week. “Faurecia key customers [are] maintaining their leadership in the Chinese market with local players like Geely.
“Premium and luxury cars are growing faster. We will develop business with OEMs like Geely, Chery, FAW and SAIC. Despite strong competition in China, Faurecia will double its market share at 10% in complete seating.”
Faurecia has also identified commercial vehicles in China as a potential source of growth for its emissions control systems, with the country the largest destination for such brands in the world at 2.1m units.
India is also attractive for Faurecia’s emissions control systems, with a market size of 350,000 commercial vehicles in 2011.
At the Investor Day, Faurecia added it was targeting EUR22bn (US$28bn) in sales by 2016, some 55% of which would be outside Europe.
Given Europe’s current weakness, the supplier will focus on North America and Asia, with sales outside Europe rising from the current 37% to 55% in 2016.