Shanghai, Paris, December 11, 2017
Valeo, one of the world’s leading automotive suppliers, today confirmed its investment of 375 million yuan (~50 million euros) in Cathay CarTech Fund, Cathay Capital’s first RMB fund, to take a stake in China’s very dynamic automotive and mobility ecosystem.
Together with another cornerstone investor, Yangtze River Industry Fund, and other investors, Cathay CarTech will focus on China with plans to invest a total of 1.5 billion yuan (~200 million euros) in innovative companies and start‑ups.
China is the world’s largest automotive market and is leading the new mobility sector, while pursuing a strategic roadmap in the three revolutions taking place in the automotive industry: electrification, autonomous & connected cars and digital mobility.
“Innovation is Valeo’s DNA,” said Jacques Aschenbroich, Chairman and CEO of Valeo. “In addition to investing more than 11% of its original equipment sales in R&D on a global basis, and with more than 3,000 development staff in China, Valeo is also actively looking into the potential of local start‑ups, which form a particularly vibrant ecosystem in China. Following investments in venture capital funds in the United States, Europe and Israel, Valeo is rolling out its open innovation ecosystem in China. Through CarTech Fund, we plan to identify and develop more innovative products and technologies for our customers.”
Illustration Photo: Fortune Global Forum 2017 in Guangzhou, China (credits: Stefen Chow / Fortune / Flickr Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic (CC BY-NC-ND 2.0))