Schaeffler ups voltage of e-mobility activity
We see China as being of significant importance for our strategic development.”
Zhang Yilin, CEO of Schaeffler Greater China
German automotive and industrial supplier Schaeffler is seeking to ride the global surge in demand for new energy vehicles and capitalize on booming growth in the Chinese auto market.
China is a fast-growing market for Schaeffler Group, which has been operating in the country for more than two decades, the group said.
“We see China as being of significant importance for our strategic development,” said Zhang Yilin, CEO of Schaeffler Greater China. As of the end of 2017, Schaeffler Greater China had approximately 13,000 employees, one R&D center in Anting, eight plants in Taicang, Suzhou, Yinchuan and Nanjing, and 22 sales offices in China.
According to the group’s report for the first quarter of 2018, it generated approximately 3.6 billion euros ($4.22 billion) in revenue, an increase of 3.9 percent from the same period last year. In the Chinese market alone, the company’s revenue had a growth rate of 18 percent on the same period last year.
“Over the past years, we have seen a fast growth in the Chinese market,” Zhang said. “At the same time, we have also observed that automotive industry is undergoing unprecedented changes, and the electric mobility has become a major trend for the future.”
Schaeffler has been adjusting to the market accordingly and expansion in e-mobility is a key area.
It’s estimated that 70 percent of all vehicles will be either pure electric or hybrid in the Chinese market by 2030, according to industry reports.
In a move to meet the increasingly growing demand in China, Schaeffler established an independent e-mobility business division on Jan 1, 2018. Under this division, all products and system solutions for hybrid and pure electric vehicles will be pooled together.
Focusing on innovative solutions for future mobility, the company develops electric driver solutions that make a significant contribution to more environmentally friendly mobility and reduce emissions, covering 48 volt drives, plug-in hybrid drives, drives for battery-electric vehicles and electric axles.
“We have achieved a number of further e-Mobility milestones,” Zhang said, noting that the company has gained eight volume production orders, and 25 customer projects are underway.
The company started the mass production of the first P2 hybrid module at its manufacturing base in Taicang, Jiangsu province, in March.
The P2 hybrid module offers a modular solution for a wide range of drivetrains, and it’s applicable to hybrid vehicle and plug-in hybrid. Vehicles equipped with the P2 hybrid module can achieve outstanding performance when driven by both an electric motor and internal combustion engine. When applied in a plug-in hybrid (with an electric-only range of more than 50 km), the P2 hybrid module can improve the fuel economy by 70 percent or more.
“China now is the world’s largest market for new-energy vehicles, which means high demand for innovative technologies for electrification. The start of production of the P2 hybrid module is a solid step for us in our e-mobility business,” Zhang said.
Schaeffler will also build an e-Mobility Competence Center this year to further enhance its local research competence.
“China has long been an important market. We are willing to constantly improve our capability to develop more innovative solutions together with local business partners, helping them to address challenges and improve product competitiveness in the future,” Zhang said.
Last year, the group announced its organizational realignment, in which Automotive Aftermarket becomes its third division after Automotive OEM and Industrial.
“Compared with the European automotive aftermarket, which started early, the market in China is still gaining shape, which means huge potential in the near future,” said Zhang, adding that the company will expand its presence in the Chinese aftermarket, especially in third-to-fifth-tier cities.