Aptiv, a leading player in the automotive parts industry, has set an ambitious target to expand its business in China by 50% over the next five years. This growth will be largely driven by the increasing demand from the new energy vehicle (NEV) sector, reflecting China’s rapid shift towards safety, environmental sustainability, and connectivity in the automotive industry.
In the fiscal year 2023, Aptiv’s sales in China grew by 12%, highlighting the region’s importance to the company’s global operations. The Asia-Pacific region, including China, contributed 28% to Aptiv’s global net sales, underscoring the strategic significance of the Chinese market for Aptiv’s growth plans.
Accelerating localization and partnerships
Xu Xiaoying, Operation Director of Connection Systems Asia and Plant Manager at Aptiv, emphasized the company’s commitment to accelerating its localization strategy in China. Aptiv aims to achieve 50% growth in its business within five years, primarily through strengthening partnerships with Chinese brands. The company plans to make these partnerships account for 70% of its overall operations.
“By deepening our collaboration with local brands, we are aligning our growth strategy with the rapid evolution of China’s automotive market,” said Xu Xiaoying.
Expanding presence in the NEV sector
Aptiv is significantly expanding its presence in the NEV sector, a crucial area for future growth. The company is constructing a high-voltage connector factory to cater specifically to the needs of NEVs. This facility is part of Aptiv Central Electric (Shanghai) Co., which is the company’s largest global connector manufacturing and R&D base. This base is also the second-largest supplier of automotive connectors in the world.
Innovation and intelligent manufacturing
Aptiv is at the forefront of innovation in the automotive parts industry. The company is pioneering an intelligent factory for automotive connectors, which leverages artificial intelligence and human-machine collaborative manufacturing. This factory aims to enhance efficiency and precision in manufacturing processes.
Through the development and design of core equipment, high-precision molds, and intelligent scheduling systems, Aptiv has automated assembly operations. The company has introduced unmanned injection molding, implemented intelligent three-dimensional warehousing, and optimized in-plant logistics to streamline production.
Enhancing efficiency with big data
Aptiv’s innovative use of big data has enabled the creation of a digital full-chain traceability system. This system covers the entire product life cycle, from design and R&D to material input, production, quality inspection, and logistics. These advancements have reduced product development cycles by 26% and cut operating costs by 30%, significantly enhancing overall efficiency.
“Our intelligent manufacturing capabilities and big data analytics have allowed us to set new standards in efficiency and quality,” Xu Xiaoying added. “These innovations are key to our strategy of driving growth and maintaining a competitive edge in the market.”
Future prospects
Aptiv’s strategic initiatives in China are aligned with the broader trends in the global automotive industry, where there is a growing emphasis on NEVs and sustainable manufacturing practices. By leveraging its technological capabilities and strong local partnerships, Aptiv is well-positioned to achieve its ambitious growth targets in China.
As the Chinese automotive market continues to evolve, Aptiv’s focus on innovation, efficiency, and local collaboration will be crucial in navigating the competitive landscape and capitalizing on new opportunities.