'Inventing' in China

As the world's largest and most fiercely competitive automotive market, China is redefining the global car industry — not just as a sales powerhouse, but increasingly as the epicenter of innovation, research and development, and manufacturing excellence.

"The market here is not just the largest in scale — it is the most innovative," said Christophe Perillat, CEO of French auto parts supplier Valeo.

His company, which entered China in 1994 and now employs over 18,000 people across 27 production plants and 13 R&D centers, is doubling down on localization efforts.

Valeo plans to open a new R&D hub in Shanghai focused on advanced driver-assistance systems and a production facility dedicated to "smart driving" technologies.

Perillat stressed that Valeo is "inventing in China" — not merely importing global technologies.

Some 4,500 engineers work locally, with a large proportion of software developers, underscoring the growing importance of software and AI in automotive innovation.

This trend is echoed by other industry players.

Auto parts giant Continental unveiled the name of its new automotive group, Aumovio, at the Shanghai show, signaling a strategic shift to position China at the center of global mobility innovation.

Philipp von Hirschheydt, CEO of Aumovio, said "I see (this launch) as a tribute to China and a recognition of the key role this market plays within our global organization."

He said the local team has more autonomy because of the need for faster decision-making in a market where development cycles are shorter.

German auto parts provider Schaeffler is celebrating its 30th anniversary in China, where it now employs 19,000 people across 17 factories and six research and development centers.

"China is no longer just a growth market. It's becoming the epicenter of future automotive technology," said Matthias Zink, CEO of Schaeffler's automotive technologies division.

"We believe the future of mobility is being written in China," Zink added.