Aptiv makes its move into China
Aptiv is making its first moves in China with the opening of an “autonomous mobility centre” in Shanghai. The American auto-company, which takes aim at the industry’s future through trends such as electrification, automation, and connectivity, says it plans to focus on the development and “eventual deployment” of its self-driving tech on Chinese public roads. This is the fifth market Aptiv has set up R&D operations in, and it’s making strides in autonomous vehicles. Other autonomous driving programs are running in Boston, Las Vegas, Pittsburgh and Singapore. China, though, is the big time.
Aptiv’s share price has increased by 45% so far year to date
Source: Yahoo Finance
Aptiv is a new name in China, but the company has been active there since 1993 in other forms. Previously known as Delphi, and, before that, Delco, Aptiv has run manufacturing and engineering facilities around China – no doubt a boon when it comes to making in-roads this time around. And, with China looking like a major driver of electrification and self-driving, it’s a market Aptiv can’t ignore.
Aptiv’s autonomous mobility president, Karl Iagnemma, said “the long-term opportunity in China is off the charts. For Aptiv, it’s always been a question of not ‘if’ but ‘when’ we’re going to enter the Chinese market.” He added that the company hopes to have self-driving cars testing on public roads later this year, saying “our experience in other markets has shown that in this industry, you learn by doing.”
According to consultants at McKinsey, China will play host to two-thirds of the world’s autonomously driven miles by 2040. Aptiv will likely look to mimic partnerships it has in the US to gain a share of that fast-growing pie.
Dominion holds Aptiv in its Global Trends Managed Fund.
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