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Sales in fast lane for auto parts maker

By Shi Jing in Shanghai | China Daily | Updated: 2018-11-30 09:44
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A Faurecia SA employee moves PSA Peugeot Citroen automobile bumpers at the company's factory in Marines, near Paris. Faurecia is Europe's largest maker of car interiors. [Photo/Agencies]

French company encouraged by rapid growth of world's largest car market

China's leading position in the development of electric vehicles and ride-hailing services, will help French automotive parts maker Faurecia double its sales in the next five years, according to Francois Tardif, president of the company in China.

In an exclusive interview with China Daily, Tardif said the company has managed to double its sales in China every five years over the past few decades, and this rate of growth will continue for the foreseeable future.

"We have a strategy within Faurecia, which is called the 'China priority'. It is a part of our strategy. This means we have invested heavily in China in the past two decades and we shall continue to invest here," Tardif said.

He explained that the company has two major technology strategies in China. The first is "sustainable mobility", which Faurecia focuses on product lines related to clean mobility, including improving exhaust systems, battery packs for electric vehicles, and fuel cells.

The other strategy is "smart life on board", in which the company aims to provide a more comfortable, responsive cabin to the needs of drivers and passengers.

Faurecia first entered the Chinese market 25 years ago. It has since set up 53 production facilities and four research and development centers in the country.

Last year, its sales revenue in China reached 2.8 billion euros ($3.2 billion).

China rose to become the world's largest automotive market nine years ago. But Tardif said it is the country's backing for electric vehicles that has got the company excited.

"China has been the leader for new energy vehicles, because it's a place where there is the largest number of such vehicles being commercialized. It is very significant for us, as the push for intelligent connected vehicles in China is defining the frame. It is directly supporting our new technologies," he said.

According to global market consultancy Roland Berger, 390,000 electric vehicles were sold in China in the first half of 2018, representing 3 percent of total car sales in the country. That makes China the biggest electric vehicle market in the world, outselling second-placed United States more than three-to-one, in the same period.

Another major trend Tardif has noticed in China is that original equipment manufacturing suppliers are designing cars on behalf of one fleet manager.

"These service providers are now directing or ordering cars according to their own needs. This is totally different, and this is very much linked to this carsharing megatrend," he said.

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