Valeo Group, one of the leading auto parts industry giants, officially opened its new electronic R&D center in Shenzhen. The Group CEO Jacques Aschenbroich specifically attended the ceremony. In an interview with this reporter, he said that Valeo pays great attention to the Chinese market. In the next five years, the total investment in the Chinese market will probably reach 600 million to 800 million US dollars. In 2015, Valeo China's profits will be turned over. Some time.

The largest number of employees in China in the future

Reporter: The annual growth rate of Valeo in the past 6 years has reached 30%. This rapid growth is synchronised with the growth rate of the Chinese auto industry. As a foreign-invested parts manufacturer, what does Valeo see the development of the Chinese auto industry? Compared with other emerging markets, what is the difference between China and this emerging market?

Jacques Aschenbroich: When it comes to the growth rate of the market, in fact, Valeo China sales and performance are faster than other markets. In fact, for Valeo, China is not called "emerging market" but is an emerging market. In terms of output, China ranks first in the world auto market. It is precisely because of the importance of the Chinese market in our business that Valeo China has the second largest number of employees in the Valeo group. If we also have a five-year plan like the Chinese government, by 2015 we expect that the number of employees in China will reach the top of the group, while sales in the Chinese market will rank second in the world.

In addition to China, there is another country that has developed relatively rapidly, namely India. In terms of the development of the automobile industry, the market in India is now relatively small, and it is basically equivalent to the situation in China probably 10 to 15 years ago. In the future, India will also become one of the world’s major auto-producing countries. Of course this is after China.

Established R&D center in Shenzhen

Reporter: In 2015, Valeo China's profits will be doubled. Is this forecast based on the amount of profit in 2010? In the next five years, what investment plans will be made to achieve this goal? R&D will How much money is invested in research and development?

Jacques Aschenbroich: Valeo's R&D center in Shenzhen is mainly focused on services for global centers and the Chinese market. The standards used in this R&D center, such as product specifications and quality, are in line with our global R&D center.

With regard to Valeo's turnover in China, we calculated it based on the $1 billion in turnover in 2010. We basically use this data to determine the development goals for the next five years. In the next five years, the total investment in the Chinese market (including R&D and plant construction, etc.) will probably reach 600-800 million U.S. dollars. In the coming years, the investment dedicated to R&D in the Chinese market will account for about 30% of the global R&D investment.

At the same time, we will also pay special attention to the implementation of the localization strategy in China. We all know that in order to develop in a local market, we must have very good local support. Therefore, we will also employ local employees to achieve localization. For example, the Shenzhen R&D Center will employ and train Chinese engineers in large numbers.

Reporter: How does Valeo see China's current development of new energy vehicles?

Jacques Aschenbroich: In terms of new energy, we have found that the current trend of new energy applications is to reduce the energy consumption of cars and reduce carbon dioxide emissions. Therefore, we have also adopted a variety of technologies in this regard, such as: reducing the size and size of the engine, improving the efficiency of power system energy consumption or using hybrid power to achieve low energy consumption goals.

At the same time, we will also see that consumers and customers in China are becoming more and more intelligent. They will also observe and investigate what kind of technology suppliers use to select suppliers.

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