In the dynamic world of the automotive industry, China has emerged as a true powerhouse, and its role is nothing short of revolutionary. 

Christophe Périllat, the CEO of Valeo, aptly described China as the “fitness center” of the global automotive sector at the 2025 Shanghai Auto Show. This statement holds profound truth, as China’s market is not only the largest in the world but also the most vibrant and innovative, acting as a catalyst for global advancements in automotive technology.

China's automotive market is a high - stakes arena where competition is fierce, and product cycles are incredibly short. This environment demands that technology partners, like Valeo, meet exacting standards in terms of speed, quality, and cost. Since its entry into China in 1994, Valeo has grown exponentially, with 27 production bases and 13 R&D centers. In 2024, an impressive over 60% of Valeo's order volume in China came from Chinese OEM customers. The Chinese market has also claimed the top spot as the largest single - country market for the group, accounting for 17% of global sales. This growth and success are testaments to Valeo's ability to adapt and thrive in this competitive landscape.

Five Key Trends Shaping the Chinese Auto Market

According to Gu Jianmin, Valeo China's Chief Technology Officer, the Chinese auto market is currently influenced by five major trends:

1. Electrification as the New Norm: The shift towards electric vehicles (EVs) is no longer a nascent trend but a full - fledged revolution. Chinese consumers are rapidly embracing EVs, driven by government incentives, technological advancements, and growing environmental awareness.

2. In - Car Technology and Connectivity: In - car technology and seamless connectivity have become non - negotiable. Today's drivers expect a high - tech experience, with features such as high - speed internet access, smart infotainment systems, and advanced driver - assistance systems (ADAS).

3. Increasing Environmental Consciousness: With pollution concerns and the global push for carbon neutrality, environmental consciousness is at an all - time high. Consumers are more likely to choose vehicles that are not only fuel - efficient but also contribute to a cleaner environment.

4. User Comfort and Experience: The bar for user comfort and driving experience has been raised significantly. From luxurious interiors to smooth rides and intuitive controls, every aspect of the driving experience is being scrutinized.

5. Cost - effectiveness: Despite the demand for high - end features, cost - effectiveness remains a crucial factor. Chinese consumers are astute, looking for the best value for their money, balancing quality and price.

Valeo's Innovative Solutions in Response

In alignment with these trends, Valeo has rolled out a comprehensive suite of optimized solutions across multiple domains:

1. Intelligent Electrification:

◦ Integrated Ultra - Compact On - Board Power and DC - DC Converter Module: This module, with integrated bi - directional charging and discharging functions, represents a leap forward in power management for EVs. It offers a more compact and efficient solution, crucial for maximizing space and performance in modern electric vehicles.

◦ Predict4Range: This software solution is a game - changer, capable of increasing the range of new energy vehicles by up to 24%. In a market where range anxiety is a common concern, Predict4Range addresses this issue head - on, making EVs even more appealing to consumers.

◦ Ineez™ Wireless Charging Technology: Making its Chinese debut, Ineez™ offers a convenient and hassle - free way to charge electric vehicles. Wireless charging not only adds a layer of luxury but also simplifies the charging process, a key factor in the user experience.

2. Advanced Driver - Assistance Systems and User Experience:

◦ World - First LiDAR Self - Cleaning System: This innovative system ensures that LiDAR sensors, critical for autonomous driving functions, remain clean and accurate. By eliminating the need for manual cleaning, it enhances the reliability and safety of ADAS.

◦ Third - Generation Valeo SCALA™ 3 High - Precision LiDAR: Offering enhanced precision and range, the SCALA™ 3 LiDAR is a cornerstone of advanced driver - assistance systems. It enables vehicles to better perceive their surroundings, contributing to safer and more efficient driving.

◦ Valeo Racer XR Gaming Cockpit: Making its first appearance for the Chinese public, this XR gaming cockpit transforms the driving experience. It combines entertainment and driving, appealing to the younger, tech - savvy generation of drivers.

3. Intelligent Lighting and Stylistic Design:

◦ Front Lighting Systems for Lynk & Co Z10 and Zeekr 7X: These lighting systems are not just about illumination; they are a statement of style and brand identity. They enhance the vehicle's aesthetics while also improving visibility and safety.

◦ OLED 2.0 Taillight Modules for Audi A6 e - tron: The OLED 2.0 taillight modules represent the next generation of automotive lighting. They offer a more dynamic and visually appealing design, setting new standards for rear - end lighting.

◦ Lynk & Co Z20 Interior Dynamic Ambient Lighting: This ambient lighting creates a personalized and immersive driving environment. It adds a touch of luxury and comfort, enhancing the overall user experience.

◦ Sensor Integration and In - Car Multi - Screen Interactive Projection Technology: By integrating sensors and multi - screen projection technology, Valeo is redefining the in - car experience. This technology enables seamless interaction between the driver, the vehicle, and the environment.

4. After - Market Services:

◦ Valeo Canopy™, the World's First Eco - Friendly Wiper Concept: Designed specifically for new energy vehicles, Valeo Canopy™ offers superior performance. With a 20% better wiping efficiency even after long - term use, it reduces the frequency of wiper replacements, thus contributing to environmental sustainability. It has an 80% coverage rate for high - end new energy vehicles in China, making it a practical and popular choice.

As Zhou Song, President of Valeo China, put it, “For years, Valeo's technology has been one of the core drivers for our customers to achieve differentiated competition.” Valeo's continuous investment in local R&D and manufacturing capabilities in China has not only led to the development of industry - redefining technologies but has also enabled the rapid global dissemination of these innovations. Looking ahead, Valeo is committed to leveraging innovation, speed, and cost - effectiveness to provide products and services of exceptional value to customers and the market. In the “fitness center” that is the Chinese auto market, Valeo is not just keeping pace; it's setting the pace for the future of global automotive technology.