Innovation is crucial in China which accounts for a large proportion of global supplier Valeo’s operations.
Despite the slowing of formerly explosive economic growth rates, China still takes 15% of Valeo’s sales and 25% of its order intake but the French company stressed the importance of technology as a future driver.
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“It is only about innovation because the market is slowing down,” said Valeo China president, Edouard de Pirey, at the Global Automotive Forum in Chongqing.
“But growth is still very fast – when you compare growth in China to other parts of the world I really think there are still a lot of opportunities.
“It is not only about the growth of the market itself in terms of numbers of cars, it is about the market we are creating with new technologies, with our R&D people all over the world including China.
“To win in the market you have to have the right technologies and prepare for the future. We don’t say ‘invented in China’, we say, ‘invented with China.’ “
De Pirey echoed other commentators at the conference who suggested there might be a shake up in the composition of China’s estimated 100 or so OEMs with consolidation posing new challenges for suppliers.
“We are convinced one or a few of the Chinese OEMs will become one of the Hyundais of the 21st century,” added de Pirey. “Some of the Chinese OEMs will win and some will disappear.
“What I know is they will achieve it while improving the quality of their cars. This is why Chinese OEMs are coming to us to improve their cars.”
