China: the “Big Bang” of mobility

China has swiftly become a powerhouse in the electric vehicle (EV) industry, leading the charge towards a more sustainable future with affordable cars. Over a decade ago, backed by robust government support, strategic incentives, and intensive R&D, the country embarked on an ambitious industrial plan to become the leader in electric mobility.

The result? A monumental shift in the automotive landscape, with China surpassing Japan as the world’s leading exporter. In 2023 alone, China produced a staggering 28 million cars, out of 88 million worldwide¹. A competitive advantage driven by “clean cars” amounting for a third of the vehicles’ exports in 2023.

1. Source: S&P global Powertrain forecast February 2024 – PC+LCV [0-3,5T]

Today, innovation is one of the most consequential drivers of growth for automakers in China. Leveraging expertise gleaned from partnerships with European and American automotive giants, coupled with substantial government investments in R&D, Chinese automakers stand shoulder to shoulder with their French and German counterparts. Consequently, homegrown champions have surged ahead, producing cutting-edge vehicles that rival international peers in both performance and design.

NIO, a frontrunner in the Chinese EV landscape and partner of OPmobility, stands out for its innovative battery-swapping technology and comprehensive mobility solutions. NIO’s Senior VP, Alan Zeng, highlights the competition in the Chinese market, emphasizing the necessity of continuous development. “For companies in China, growth is vital. We are comfortable with challenges.” NIO’s latest example? Their upcoming 800 V (voltage) system, a next-generation battery platform integrating high-performance components, advanced technology, and connectivity features.

With its unparalleled scale, innovation ecosystem, and government support, China remains poised to drive the future of mobility on a global scale. China is almost ten to fifteen years ahead when it comes to the electric auto industry even if uncertainties remain for the years to come. Faced with growing economic challenges like declining purchasing power and housing accessibility within its own population, China’s automotive sector is also grappling with overcapacity across the production chain. Consequently, the government has encouraged manufacturers to turn to foreign markets by exporting in a virtuous way, by adhering to local regulations.

The entire automotive industry is undergoing a transitional period, characterized by volatile volumes as well as an open future. As concerns over pollution and climate change grow, there’s also a rising demand for cleaner transportation. China is intensifying its efforts in green transportation, promoting alternative modes such as hydrogen fuel cells and renewable energy-powered vehicles. Initiatives like the “New Energy Vehicle” mandate and carbon trading programs are driving investment and innovation. And strategies like deploying 10,000 electric buses in 100 cities or offering a €1,000 ecological bonus for EV purchases underscore this commitment.

Amidst China’s mobility boom, OPmobility strategically positions itself to capitalize on burgeoning opportunities. Mustafa Yesilgoez, President, Lighting APAC, knows the Group counts plenty of strengths in China. “We are a recognized supplier across Asia and our expertise in emission reduction, which allows us to bring technologies and lightweight solutions to car manufacturers, is well known.”

“OPmobility has manufacturing capabilities with 36 plants and four R&D centers in China, including those needed for hydrogen-powered and electric vehicles. We are present across the globe, not just in China, which allows us to better navigate the markets. And we have excellent relationships with local players, developed over our decades-long presence. OPmobility is a global player with innovative products such as front bumpers and clean energy system tanks, but is also investing a lot in new energies, such as hydrogen, and lighting, always incorporating the latest electronics and software,” affirms Mustafa Yesilgoez. “We’re really working to become more sustainable and invest in the future. We have a responsibility for the environment and for future generations.”