Auto parts industry leader Aptiv aims to expand its operations in China by 50% over the next five years, driven primarily by increasing demand from the new energy vehicle (NEV) sector.
In fiscal 2023, Aptiv's sales in China grew 12%, and the Asia Pacific region, including China, accounted for 28% of the company's global net sales.
Xu Xiaoying, operations director and factory manager of Aptiv Connection Systems Asia, said the company is accelerating its localization strategy in China, aiming to grow its business there by 50 percent within five years. The company is accelerating collaborations with Chinese brands, with plans to make this segment 70 percent of its total business.
As China's automotive industry rapidly shifts towards safety, environmental sustainability and connectivity, Aptiv is expanding its presence in the NEV sector and is building a high-voltage connector factory to support its NEV business.
The company established the world's largest connector manufacturing and R&D base at Aptiv Central Electric (Shanghai) Co. in Shanghai, which is the world's second largest automotive connector supplier.
Aptiv is pioneering intelligent factories for automotive connectors, leveraging artificial intelligence and human-machine co-manufacturing.
Through the development and design of core equipment, high-precision molds and intelligent scheduling systems, the company has automated assembly operations, introduced unmanned injection molding, implemented intelligent three-dimensional warehousing, and optimized in-factory logistics.
Aptiv leveraged big data to build a digital full-chain traceability system across the entire product lifecycle, from design, R&D, to material input, production, quality inspection, and logistics. These innovations have improved product development cycles by 26% and reduced operational costs by 30%.