Germany’s Thyssenkrupp Automotive Technology and Chinese tech firm Inovance Automotive have agreed to collaborate on developing and industrialising steer-by-wire systems.

Under the memorandum of understanding, the companies intend to unite Thyssenkrupp’s expertise in chassis engineering, steering mechanics, system integration, and functional safety with Inovance Automotive’s experience in actuators, electronics, software, and Chinese manufacturing operations.

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The arrangement sets an outline for technical cooperation that will target an initial deployment in the Chinese market before potentially extending into other international territories.

Steer-by-wire mechanisms substitute mechanical links between the steering wheel and road wheels with electronic signals, which requires functional safety and software to be more deeply embedded into vehicle architectures.

Thyssenkrupp Automotive Technology COO Viktor Molnar said: “With Inovance Automotive, we have a partner with a strong understanding of the market, its customers, and the industrialisation process.

“By combining these capabilities with our expertise in steering, system integration, and functional safety, we aim to bring steer-by-wire solutions to production readiness faster while creating the foundation for further growth beyond China.”

In the coming months, the partners plan to outline joint development frameworks, assess possible industrialisation paths, and define the long-term setup of their alliance.

In addition to steer-by-wire, the suppliers aim to review wider opportunities for cooperation across advanced chassis technologies.

Thyssenkrupp’s product portfolio includes axle assembly, damping systems, and vehicle motion control software.

Meanwhile, Inovance Automotive develops active suspension, rear-wheel steering, electromechanical braking, and electric drive systems.

Inovance Automotive board chairman Juntian Li added: “Leveraging Thyssenkrupp’s proven competence in chassis technology, this collaboration will fast-track the market introduction of our new intelligent chassis solutions for both Chinese and global customers.”

Earlier this month, Thyssenkrupp Automotive Technology opened an engineering centre in Pune, Maharashtra, India, carrying out plans first announced in 2025.

The Pune site enlarges the company’s worldwide research and development footprint, with activities directed towards cybersecurity, embedded systems, functional safety, and next-generation steering and chassis platforms.