Market, tech make China important -- Insights from Continental China's CEO

HEFEI -- After 30 years of development in China, Continental AG values not only China's market volume, but also its advanced technologies, said Enno Tang, president and CEO of Continental China in an exclusive interview with Xinhua News Agency recently.

"Last year, China's auto sales and production both exceeded 30 million units for the first time, which signifies a large market for us. In addition, Chinese cars are already at the forefront of the world in terms of electrification and intelligence. We can develop iterative technologies in the Chinese market to meet the needs of consumers in China and abroad," Tang said.

The company's tire plant in Hefei, East China's Anhui province, is German car parts supplier Continental AG's first wholly-owned tire production base in the country. With the new project initiated on June 20, the plant's annual production capacity is expected to reach 18 million tires in 2027.

"The launch of the fourth phase of the plant construction is not only another important milestone for Continental AG's development in China, but also demonstrates our strong confidence in the Chinese market," Tang said.

Since the plant started production in Hefei in 2011, it has been expanded three times, with its output increasing rapidly over the past 13 years. Its cumulative total output increased from over 10 million tires in May 2015 to 90 million in December 2023.

Apart from the tire plant, Continental AG has established 23 production bases and 28 research and development (R&D) centers in China, with approximately 17,600 employees. Over the past decade, the company has invested more than 23 billion yuan ($3.17 billion) in China.

Over the past few years, Continental AG has also set up R&D centers in cities including southwest China's Chongqing municipality, eastern Anhui's Wuhu and other places to further develop cutting-edge technologies.

Tang said that Chinese creativity and innovation is becoming a very important juncture for their development strategy. In addition to applying novel applications like artificial intelligence, in production and manufacturing, Continental AG has also invested a lot in product innovation to comply with the trend of intelligent connected vehicles.

"In terms of the electronic and electrical architecture of automobiles, we cooperate with Chinese automotive manufacturers to innovate and develop new products. We are also developing and upgrading vehicle-mounted digital displays to better achieve human-car interaction," Tang said.

The phase IV project of Continental AG's Hefei plant has introduced forward-looking manufacturing techniques and production technologies and has realized an automated and intelligent production line, improving the efficiency and quality significantly. Meanwhile, Continental AG has invested heavily in innovative environmental protection facilities, in a bid to build up a green and energy-efficient factory.

"Faced with great changes in the global automobile market and the rapid development of China's automobile industry, Continental AG continues to develop cutting-edge technologies, enhance local R&D capabilities, and strengthen the local industry chain to promote the development of the auto industry," said Tang, adding that Continental AG is also advancing in-depth integration of new technologies and manufacturing, and continuously deepening the intelligent and sustainable development of vehicles.

Speaking of China-German cooperation, Tang said that the two countries are highly complementary in bilateral trade, and the economic and trade cooperation has always been an important part of bilateral relations.

In the future, Continental AG will continue to strengthen local production and supply chain in China, enhance local R&D capabilities, and support the overseas layout and development of Chinese automobiles by virtue of Continental AG's global development and production network, according to Tang.