C Talk | UFI Group: UFI Bets Big on Green Mobility, Advancing with a Three-Pronged Strategy Towards a New Future

As the wave of "Four New Trends" (Connected, Autonomous, Shared, Electric) in the automotive industry sweeps through, the industry is witnessing a significant turning point unseen in a century. At this critical juncture, only parts suppliers with advanced technology and innovation capabilities can survive the fierce competition and gain an advantageous position.

Innovation

In this context, as a global enterprise, UFI Group advances with a three-pronged strategy, the first is Innovation. UFI Filters consistently adheres to the principles of innovation and R&D, investing approximately 5% of its revenue (600 million euros) in R&D. Giorgio Girondi, Chairman of UFI Group, emphasized in the latest C Talk by Gasgoo, "Innovation is our DNA."

Since its establishment in 1971, UFI Group has continuously deepened its innovation and R&D capabilities. Simone Trazzi, COO of UFI Group Asia Pacific, noted, "We have established three major R&D and testing centers worldwide, located in our headquarters in Italy, India, and Shanghai, China. This enables us to develop and launch new customized solutions according to different customer needs. Innovation is the real key to our success."

Through decades of continuous innovation and R&D accumulation, UFI Group's product range covers air filters, oil filters, fuel filters, cabin filters, hydraulic filters, coolant filters, and automotive thermal management systems. Simone Trazzi also highlighted Multitube，which is a revolutionary product of UFI Group. The air filter that occupies less space and provides more power for the engine.

Thanks to continuous technological innovation, high-performance solutions, and investment in technologically advanced products, UFI Group strives to meet the needs of automotive brands as well as motorcycles, commercial vehicles, heavy-duty vehicles, and agricultural vehicles. Its filter products are ultimately favored by 95% of the world's leading manufacturers.

As the global automotive industry transitions to electrification, UFI Group has also identified new development opportunities, focusing on research on hydrogen and filtration equipment used in heat exchangers and fuel cells. Giorgio Girondi admitted, "Whenever we look to the future, we always take the lead in innovation and research." He added, "In the future, with continuous innovation, we will develop better and better."

Sustainability

Besides innovation, the second pillar is the sustainable development, a philosophy that UFI Group has consistently practiced.

UFI Group's commitment to supporting environmental sustainability involves products, supply chains, recycling, and more. Specifically in recycling, UFI's waste recovery rate has increased from 67% in 2021 to over 75% in 2023.

Moreover, the newly opened Jiaxing Green Factory is also a result of UFI Group's commitment to sustainable development. Simone Trazzi revealed, "The UFI Green Factory will study how to minimize emissions and reduce power consumption. For example, we will install photovoltaic panels on the roof, covering an area of 15,000 square meters, capable of generating approximately 1 million kilowatts per year."

UFI Group's path to sustainable development doesn't stop there. Simone Trazzi also stated, "At the group level, we have launched a continuous improvement plan to study how to reduce greenhouse gas emissions and lower energy consumption."

China Market Opportunity

In addition to innovation and sustainable development, the Chinese market has always been a significant chapter in UFI Group's development history.

From a sales volume of 2 million vehicles over 20 years ago to exceeding 30 million vehicles in 2023, China has been the world's largest automotive market for 15 consecutive years, successfully achieving a significant leap in its automotive industry.

In this process, many foreign parts suppliers have made significant contributions to the industry's take-off through the "In China, For China" strategy, while also leveraging the enormous development potential of the Chinese market to achieve a win-win situation.

"Since 2020, our sales in China have grown by 40%, with annual growth rates of 10% or more, which is not easy," said Giorgio Girondi in an interview.

UFI Group is one of the first Italian companies to identify development opportunities in China. After decades of deep investment and development, it has established seven factories across China. In 2024, the successful opening of UFI Group's Jiaxing Green Factory marked a new chapter in its business in China.

The rapid development of the Chinese market has also amazed UFI Group's executives. UFI Group continues to deepen its "In China, For China" strategy. Simone Trazzi pointed out, "The Chinese market is developing very rapidly, and competition is very fierce. We must quickly adapt to the development trends of the Chinese market and provide high standards and excellent service to our customers with creativity and flexibility."

In the interview, Giorgio Girondi also referred to himself as "half and half" (half Italian, half Chinese). In his view, China and Italy have similar historical cultures and deep trade roots. Since his first visit to China over forty years ago, he has witnessed and participated in the booming development of China's automotive industry.

Giorgio Girondi firmly believes that Chinese technology stands at the forefront of the world and hopes that China-Europe and China-Italy will maintain friendly cooperation to jointly write the next chapter in the global automotive industry.

In a word

In this episode of the interview, Giorgio Girondi and Simone Trazzi discussed UFI Group's innovation, sustainable development, and opportunities in the Chinese market. Let's take a look at how UFI Group is betting big on green transformation with three-pronged strategy.