Valeo at the heart of China’s automotive revolution

It only takes a moment of observing traffic in a Chinese city, or hailing a ride, to see and experience the latest in automotive innovation.

It’s the world’s largest market by volume and a trendsetter in electric vehicles, ADAS and autonomous driving, software-defined vehicles, connectivity, and smart lighting. By 2025, New Energy Vehicle sales are expected to surpass sales of pure internal combustion vehicles.

In automotive, China has become the world “fitness center” for the industry. That means that companies there have to continually become stronger, faster and more competitive. The highest level of innovation, the highest level of technology, the highest level of competitiveness, is in China.

“The pace of innovation here is unmatched—fueled by cutting-edge technology, an agile mindset, rapid development cycles, and an unwavering drive for excellence,” said Song Zhou, President of Valeo China. “Which is how I also describe Valeo in China.”

Over the last 30 years Valeo has become a trusted partner to global automakers in the Chinese market and to local OEMs. When Valeo launched in China in 1994, the country produced just 250,000 passenger cars annually. In 2024, China produced 29.8 million vehicles, a third of all vehicles produced worldwide.

As of 2025, China has Valeo’s largest footprint worldwide, counting 27 production sites, 13 R&D centers, and 18,000 employees, including more than 4,500 engineers dedicated to innovation and technology development.

“For Valeo, China is more than a market, it’s a partnership,” Zhou said.

Valeo’s initial China market strategy of “Made in China for China” has evolved to “invent in China, for China”

For example, local teams developed in just 8 months Valeo Smart Safety 360, which makes it possible to offer a very affordable L2/L2+ system, with a limited impact on vehicle architecture.

Another of Valeo China’s latest developments is a cross-domain controller that merges ADAS and in-vehicle infotainment functions. This innovation supports advanced L2+ intelligent driving capabilities, such as automated parking, and highway and urban area driving assistance, while offering premium entertainment features, intuitive voice control and immersive in-car experience. This system was developed in just 6 months and offers carmakers a cost-effective and future-ready solution.

In electric vehicle thermal management, there is the Valeo Smart Heat Pump, which improves the energy efficiency of EVs while reducing the overall weight of the thermal system, and the integration cost for the manufacturer.

The local teams also developed the innovative Thin Bilite headlamp with next-level safety and customization features, and Valeo’s LED digital panels equipped on several models from Chinese automakers such as Geely’s Zeekr and Lynk & Co.

The very practical phone-as-key technology was also created by Valeo China.

Today, with the increasing digitalization of vehicles, Valeo is expanding its offering, particularly in software, to meet the evolving needs of the industry. And the company is reducing development cycles to move faster and stay ahead.

The company is also expanding its footprint. In 2025, the company will inaugurate a new production site in Shanghai dedicated to smart automotive cameras, LiDARs, domain controllers, and chip bonding.

“China is one of the most important markets for Valeo,” said Jianmin Gu, CTO of Valeo China. “Valeo will continue to deepen its localization strategy here and increase investment in the areas where Valeo is a world leader.“

The automotive industry is undergoing the most significant transformation in its history, and China is clearly where that evolution is seen first.

“By leveraging the fiercely competitive Chinese market as a ‘fitness center’, we become faster, more advanced, and stronger here, maintaining our leading position in the market and bringing more innovative technologies and processes to support our clients worldwide,” said Gu.