Trends in Western Tier 1 Suppliers in China (Part 2)

Faurecia, Magna, Schaeffler

2021/03/01

Summary

 In 2020, the automotive industry was, to a certain extent, impacted by the global outbreak of the COVID-19 pandemic. In February 2020, China took measures against the outbreak such as undergoing lockdowns in various regions. In the midst of these circumstances, the Chinese government implemented several consumption stimulus measures, such as implementing a new NEV subsidy policy. Additionally, the “Energy-saving and New Energy Vehicle (NEV) Technology Roadmap 2.0” initiative announced by the Society of Automotive Engineers of China (SAE-China), aims to reduce carbon emissions, increase intelligentification, promote information transformation in China’s automobile industry, and, in particular, advocates further electrification. By 2035, China aims to have NEVs account for 50% of new vehicle sales, have fuel cell vehicle ownership reach around 1 million vehicles, and convert commercial vehicles to be powered by hydrogen energy.

 According to data from the SAE-China, new vehicle sales in China in 2020 saw a year-over-year (y/y) decrease of 1.8% to 25.311 million vehicles (including factory shipments and exports), reflecting a decline over the past three consecutive years. However, NEV sales saw a major y/y growth of 10.9% to 1.367 million vehicles. Meanwhile, Western Tier 1 suppliers are both pursuing profits and actively promoting the “CASE” (Connected, Autonomous, Shared, and Electric) technological megatrends. Faurecia has partnered with several Chinese companies to jointly conduct research and development of intelligentization. Magna established a new NEV OEM as a joint venture with Beijing Electric Vehicle, a subsidiary of the Beijing Automotive Group, and launched the NEV brand “ARCFOX”. Schaeffler established a research and development center in Hunan Province, where it introduced its drive-by-wire technology, which is essential to autonomous driving and planned for production in 2021.

 This report covers the intelligentification, electrification, and autonomous driving trends among the Western Tier 1 suppliers Faurecia, Magna, and Schaeffler in China. (for the period from July 2019 to January 2021)

 

Related reports:
Trends in Western Tier 1 Suppliers in China (Part 1) (Feb. 2021)
2020 Chinese market: New vehicle sales down 1.8%, commercial vehicle sales top 5 million units (Feb. 2021)
The Impact of COVID-19 on the Automotive Industry (Nov. 2020)
Autonomous, connectivity and HMI activities of Western suppliers - Part 3 (Oct. 2020)
Autonomous, connectivity and HMI activities of Western suppliers - Part 4 (Oct. 2020)