International auto suppliers are deepening partnerships with Chinese firms and speeding up localized manufacturing and innovation to tap into the immense potential of one of the world's most dynamic car markets.
The much-anticipated Auto Shanghai 2025 kicked off on Wednesday, attracting nearly 1,000 notable enterprises from 26 countries and regions.
At this year's event, an exhibitor that may seem modest in size is making waves with its cutting-edge innovations. Yandex, the Russian internet giant, has introduced its latest smart vehicle solutions, designed specifically to provide all-in-one digital services for cars exported from China to Russia.
With Russia emerging as China's major export market for cars, the booth has drawn local automakers eager to explore potential partnerships.
"Over the past few years, the Russian automotive market has seen annual sales of around 1.4 to 1.5 million units, with Chinese carmakers now accounting for about 1 million of those sales. We've established partnerships or contacts with nearly 10 [Chinese firms]," said Zhou Tian, senior business director for Yandex China.
A German company, known for its focus on active and passive automotive safety systems, is also making strides in China's burgeoning smart driving sector. The company has introduced solutions to detect driver conditions and other smart driving features. It has invested heavily in research and development in Shanghai, aiming to seize early opportunities in the market.
"The unique, the most important thing in Chinese market is speed, and this is very important for us to be prepared for it. That's why we introduced a complete new development center here in Shanghai Anting. We are near to our customers, we are close to them and we can work very fast together," said Rudolf Stark, head of ZF Passive Safety Systems division.
Italian auto parts supplier Marelli, traditionally serving European luxury brands such as Audi and BMW, now tailors high-end lighting and display systems for rising Chinese manufacturers.
"We recently created the center of competence of our lighting division for Asia-Pacific in Shanghai. Another example is our global product line for displays is located in Guangzhou, where the headquarter of our Chinese electronic division is. And overall for Marelli we are increasing our R and D staff to support China for China and to support China for global, " said Joachim Fetzer, chief technology and innovation officer of Marelli.
A regular exhibitor at the auto show, Spanish company Gestamp, which specializes in highly engineered metal components, this year brought products that reduce component weight without sacrificing safety, contributing to longer driving ranges for electric vehicles.
"So Chinese market is bringing a lot of opportunities. There is a lot of competition in the market, which is pushing us to be more efficient, to improve our operations and this is good for us. But for sure, the market in China will keep increasing and booming," said Antonio Lopez, CEO of Gestamp Asia.
The 2025 Auto Shanghai will run until May 2.
Global auto parts suppliers race to capitalize on China's booming market
