Gasgoo Munich- Autoliv Wuhu Safety Systems broke ground on August 10 in Jiujiang District, Wuhu City, Anhui Province. The new facility will focus on automotive airbags, featuring modern production workshops and automated assembly lines, with production slated to start in 2027.
This is the latest step in Autoliv's manufacturing expansion in China this year. In January, the second phase of its Jiading plant began operations with a total investment of 350 million RMB, positioning it as the company's flagship airbag facility in the region. With the Wuhu project underway, Autoliv is further bolstering its airbag capacity footprint across East China.
Image source: Autoliv
The choice of Wuhu comes as no surprise. As a major domestic automotive hub and the home base of Chery Automobile, the city has cultivated a complete industrial cluster for vehicles and components. For Autoliv, establishing a production base here helps shorten supply chain distances to regional OEM customers, boosting delivery speed and response efficiency.
Behind this move lies a shift in Autoliv's customer mix in China. Its 2025 annual report shows sales to Chinese local automakers jumped 23% that year, with local brands now contributing 44% of the company's revenue in the region — a critical growth driver.
As Chinese local brands gain market share and expand overseas, multinational parts suppliers are accelerating their localization push in China. Once the Wuhu plant is operational, Autoliv will further strengthen its manufacturing capabilities and supply chain resilience in the country. More importantly than just adding capacity, the company is strategically positioning its production network closer to its local Chinese customers.
