Valeo has confirmed its investment of CNY375m (US$59m) in Cathay CarTech Fund – Cathay Capital’s first RMB fund – to take a stake in China’s automotive and mobility ecosystem.
Together with another investor, Yangtze River Industry Fund and others, Cathay CarTech will focus on China with plans to plough a total of CNY1.5bn in companies and start-ups.
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China is the world’s largest automotive market and is leading the new mobility sector, while pursuing a roadmap in the three revolutions taking place in the automotive industry: electrification, autonomous and connected cars, as well as digital mobility.
“Innovation is Valeo’s DNA,” said Valeo, chairman and CEO, Jacques Aschenbroich. “In addition to investing more than 11% of its original equipment sales in R&D on a global basis, and with more than 3,000 development staff in China, Valeo is also looking into the potential of local start-ups, which form a particularly vibrant ecosystem in China.
“Following investments in venture capital funds in the US Europe and Israel, Valeo is rolling out its open innovation ecosystem in China.
“Through CarTech Fund, we plan to identify and develop more innovative products and technologies for our customers.”
