Schaeffler revved up on China auto parts mkt

German auto parts provider Schaeffler is betting big on the Chinese market, with plans to double its business in the country over the next six to seven years, even with rising global trade uncertainties.

Zhang Yilin, CEO of Schaeffler Greater China, said: "We are now investing around 2 billion yuan ($280 million) in China annually and will no doubt keep investing as long as there are great opportunities."

Zhang, who joined the company two decades ago, recalled starting with a modest team of just over 100 people generating 300 million yuan in sales.

"Now, we've grown into a major engine for global growth. With the merger of Vitesco, a German automotive supplier for drivetrain and powertrain technologies, our capabilities are stronger than ever — it's a case of strong meets strong."

Zhang made the remarks at the Shanghai Auto Show last month, where the German company showcased a lineup of new electrified and intelligent mobility solutions, many tailored specifically for the Chinese market — a clear nod to its growing focus on local innovation.

This year also marks Schaeffler's 30th anniversary in China, where it now employs 19,000 people across 17 factories and six research and development centers.

"China is no longer just a growth market. It's becoming the epicenter of future automotive technology," said Matthias Zink, CEO of Schaeffler's automotive technologies division. "We're not just a component supplier anymore — we're a diversified tech company."

Schaeffler's push aligns with broader global trends. The International Energy Agency said electric cars are projected to account for over 40 percent of global car sales by 2030. In China, the share could reach 80 percent, cementing its position as the world's largest and most dynamic EV market.

"We believe the future of mobility is being written in China," Zink added.

Klaus Rosenfeld, CEO of Schaeffler, said: "We have achieved very positive momentum here in the Chinese market over the past three decades and we are building here for the long term."

In March 2025, Rosenfeld was among over 40 international business leaders who met with Chinese top leadership in Beijing to discuss enhancing business cooperation and addressing economic challenges in China.

"With strong R&D and production capabilities, Schaeffler will continue delivering cutting-edge technology to our key customers here — and from China to the world," he said.

Schaeffler's global ambitions took a major step forward last October following its merger with German drivetrain specialist Vitesco Technologies. The combined group now boasts pro forma annual sales of 25 billion euros ($28.19 billion) and a global workforce of around 120,000 across more than 250 locations.

"The merger with Vitesco has further strengthened our capabilities, making us more robust alongside our increasingly powerful clients," said Zhang.

Following the merger, Schaeffler is pushing a "local for local" strategy to better adapt to regional needs — and China is leading the way.

"More than 90 percent of our R&D and production for automotive products in China is already localized," said Zhang. "This isn't just a China strategy — the same applies to the Americas and Asia-Pacific. We're giving regions more autonomy to tailor their own road maps."