For almost three decades, Valeo has built trustful relationships with Chinese manufacturers and suppliers. Our four business groups and Valeo Service are active in the country and produce locally, with a local supply chain, for the Chinese market. More than 90% of our production in China is for the national automotive market, which is the largest in the world. In 2022, China represented 18% of the group’s sales. Chinese OEMs, both traditional and new, represent more than 40% of our OEM sales and 45% of our order intake in the country.
ZHOU Song, Valeo China President explains “in 2022, Valeo launched the ‘Move Up’ plan, which identified four strategic development directions that align with market trends: electrification acceleration, ADAS acceleration, interior experience reinvention and lighting everywhere. These pillars are the center of the evolution of the automotive industry in China. The first year of implementation in China has demonstrated strong results with a sales growth of 7%, overperforming the market, and an order intake representing 2.2 times our sales.“
Preparing the Future of Mobility in China
Valeo has 14 research and development centers in China with 4,000 engineers who work on preparing the future of mobility for the Chinese market, but also for other regions. After setting up a global technology center in Wuhan, a Valeo China Innovation and Mobility Center was opened in Beijing last year and a new center for innovation in ADAS will open in Shanghai soon.
“Innovation is a key driver of Valeo. The group has always placed China in an important development position and will continue to increase investment in China. At Valeo China, we are proud to contribute to the group’s innovation, for the Chinese market but also overseas. We are looking forward to strengthening local R&D efforts and R&D personnel training, together with our partners, to build an infinite and sustainable future for mobility” said GU Jianmin, Valeo China CTO.
In addition to internal product innovation and optimization, Valeo has always been committed to open innovation, working with well-known academic institutions, innovative technology companies and universities to actively cooperate, and maintain a competitive advantage for future business through continuous innovation. The Group established a joint laboratory with Shanghai Jiao Tong University in 2016 and invested in the Cathay CarTech Fund, aiming to expand the mobility ecosystem in China. In 2022, Valeo and Huazhong University of Science and Technology established a joint laboratory for vibration and acoustics (V&A-LAB China) to further strengthen joint innovation with universities.
At Auto Shanghai, Valeo will present for the first time the new eDeliver4U, an autonomous and electric delivery droid equipped with Valeo’s cutting-edge innovations and entirely developed in China.
The droid is based on an electrified chassis integrating Valeo’s 48V solutions for light mobility. It is also equipped with Valeo’s latest mass-produced ADAS sensors and software stack to enable automated mobility. The Valeo lighting technologies enhance safety and ensure communication with other road users.
The sensor cleaning systems enable the droid to operate in all-weather conditions and various road environments and an ADAS cooling system ensures stable driving even in high-temperature weather conditions.
China is leading the revolution of electrification and Valeo is matching its pace with our full range of e-Powertrain solutions from 12V, 48V to 800V and from hybrid to pure EV. Our solutions for electrification are now onboard current and future platforms of international OEMs, traditional Chinese brands and new entrants. Valeo’s long expertise in thermal management systems has enabled the development as a world premiere, for a major Chinese automaker, of a Smart Heat Pump for EV to ensure the comfort of passengers while optimizing the autonomy of the battery.
On the booth, we will present our extensive portfolio to serve all market needs related to the electric powertrain, including the new-generation automotive electric motor entirely rare earth and magnet-free developed in partnership with Renault. Valeo will also showcase its comprehensive management of thermal systems, which are essential for electric vehicle performance as well as its chargers.
The relevance of technologies initially developed for the automotive industry has enabled Valeo to become a global mobility player with electrification solutions for bikes (Valeo Cyclee), two- and three-wheelers, but also droids like the eDeliver4U.
Advanced Driver Assistance Systems Acceleration
As a pioneer and the world leader in ADAS, Valeo has developed all the sensors and relevant intelligence allowing the car to make the right decision. A Chinese OEM has recently recognized Valeo for creating a complete Level 2 autonomous driving system using a 5C-5R-12U sensor set (5 cameras, 5 radars, 12 ultrasonic sensors), a domain controller, and a software stack designed for assisted driving Level 2 and automated parking.
On the booth, Valeo will present the award-winning SCALA 3 LiDAR. Valeo SCALA 1 and 2 made conditional autonomous driving in traffic jams a reality. SCALA 3 dramatically increases the domain of operation – and therefore the customer value – of private vehicles thanks to a wider scope of use and higher speed support. Valeo is also positioned as a leader in robotaxis equipment as SCALA 3 enables our clients to make robotaxis a reality at scale, using a proven, best-in-class technology in mass production. It has already been selected by 3 companies in North America, Europe and Asia, bringing the orders to more than 1 billion euros. It recreates a 3D image of the vehicle’s surroundings using a point cloud, with an as yet unparalleled resolution for an automotive system.
As cars become more autonomous and more connected, vehicle architectures are evolving to embed more sensors and software. Valeo is developing innovative and powerful domain controllers for both parking and driving automation. Since many Chinese OEMs are supporting the fusion of ADAS and Infotainment into a single domain controller, Valeo is working on a first standard solution, to go into production in 2024. This cost-effective solution for L2 vehicles will comply with GSR regulation and NCAP.
Reinvention of the Interior Experience
Valeo is reinventing life on board offering a new level of comfort, safety, and immersive experience. Thanks to its expertise in perception systems and artificial intelligence, Valeo is offering solutions for the entire interior experience journey. At AutoShanghai 2023, we will present technologies in the areas of access (phone as a key), monitoring (interior cocoon & driver monitoring system) and interaction (woodlike interactive surfaces).
For example, the driver monitoring system is a life-saving technology, based on an infrared camera that tracks driver alertness and detects signs of drowsiness or distraction. Our AI-based facial recognition algorithms have been trained using data primarily from Chinese individuals to detect drowsiness, distraction, and emotion facial expressions accurately in order to ensure high accuracy for our Chinese customers. Our system has been in mass production in China since 2019, and we have received a great deal of positive feedback from end users.
With vehicles becoming more and more electric and autonomous, lighting will be even more important – both in and around the vehicle, to assist driving, transmit signals and promote intelligence and personalization.
China is a trendsetter and a very dynamic market, open to the unlimited possibilities that Valeo offers in terms of design and communication. We partner with Chinese OEMs to facilitate the development of visibility solutions for their platforms thanks to our high performance dynamic OLED lamps allowing design freedom, high-end finishing, personalization as well as a first level of communication.
On the booth, Valeo will present Valeo Lighting Experience and the Digital Twin. Valeo is developing artificial intelligence systems to define and visualize holistic designs in real time by combining style, functionality and technologies. These cutting-edge systems will accelerate the virtual development of lighting solutions, with prototypes built at the latest possible stage, thus reducing development costs. The solutions also resolve the issue of hardware obsolescence by offering style updates throughout the life of the vehicle. Our partnership with Ningbo Swell also enables us to offer state of the art signaling integrated in central areas, easier local development and decoration.
China is at the forefront of the development of autonomous driving. Our sensor cleaning portfolio contributes to the reliability of automated cars, whatever the weather and seasons.
Finally, interior lighting is also being reinvented and extended across surfaces to create a more immersive experience for passengers. It can be used for a variety of purposes such as delivering navigation information, visualizing music, creating personalized and relaxing atmospheres, etc. Immersion is made possible by engaging multiple senses such as sight, sound and touch.