C Talk | Valeo: China is the fitness center of the global auto industry

"China is the 'fitness center' of the global automotive industry, and the experience we gain here will greatly benefit other markets," remarked Christophe Périllat, CEO of Valeo, in the latest C Talk interview of GASGOO.

Périllat's observation reflects his deep insight into the industry's ongoing transformation. As electrification, intelligent mobility, and software-defined vehicles reshape the global automotive landscape, China stands at the forefront of these disruptive trends. From its high EV penetration rate to the rapid adoption of advanced driver-assistance systems (ADAS), from its mature supply chain to its open and dynamic consumer base, China has become both a testing ground and a growth engine for the future of mobility. For Valeo, this makes China not only a vital market but also a driving force for the company's continuous evolution.

Over the past few years, Valeo's localization efforts in China have delivered significant results. In 2024, 60% of the company's orders in the country came from local automakers; by the first half of 2025, this share had climbed to 65%. Yet, as Périllat noted, the ambition goes much further. With Chinese brands now commanding nearly 70% of their home market, Valeo aims to align its order book with this trend and continue expanding alongside its Chinese partners.

Reflecting the group's global strategy, Valeo Brain Division has emerged as a key growth driver in China. The country already leads the world in ADAS adoption, while consumers are increasingly prioritizing in-cabin safety, personalization, and human-vehicle interaction. As Marc Vrecko, CEO of Valeo Brain division and Executive Vice President of Valeo Group, emphasized, Chinese demand is now a primary consideration in global product development, pushing Valeo to accelerate innovation cycles and shift R&D and production closer to China.

The opening of Valeo's new plant in Jiading, Shanghai, underscores this strategy. Dedicated to intelligent driving systems, the facility will produce vehicle computers, domain controllers, cameras, and LiDARs—technologies that are central to the software-defined vehicles. These investments not only strengthen Valeo's presence in China's ADAS market but also enhance local support for both Chinese and international customers.

With localized R&D, manufacturing, management, and engineering capabilities, Valeo combines global scale with "China speed". This dual advantage enables the company to respond rapidly to market needs, optimize costs, and leverage its innovations worldwide.

Looking ahead, Valeo's ambitions in China are clear. Périllat stressed that the Group is determined to match and even outpace the growth of the Chinese market over the next five years, deepening cooperation with all local OEMs while supporting global clients in China. Vrecko added that Valeo Brain Division will continue to build trust with Chinese partners, deliver safe and reliable solutions, and expand capacity at the Jiading plant to fuel further growth.

For more insights from the interview, please watch the video above.