Mahle exec eyes China as epicenter of market growth

Mahle is pushing deeper into China, believing that the world's largest car market will be the key driver of its growth in the industry's transition toward smart electrification, according to Philipp Grosse Kleimann, a member of the German auto supplier's management committee.

"China, all in all, is an important country for us," said Grosse Kleimann, also head of the company's Lifecycle and Mobility division, in an interview with China Daily at Automechanika Shanghai in late November.

Mahle has 135 production locations worldwide — 51 of them in Asia — a footprint he says reflects the market's strategic weight.

Grosse Kleimann said the event itself offered the latest evidence of how rapidly China's automotive ecosystem is evolving. "It is the largest B2B platform globally. The customers are from China, from Singapore, from Australia, and from Europe."

China has also become the global testing ground for electric mobility, he said. New energy vehicles already account for 57 percent of new car sales in the country, and the share of EVs in the total fleet is projected to jump from 13 percent today to 40 percent by 2030.

"I find it impressive here how the right steps are taken and how open, at the same time, the regulation is," he said, praising China's decision to define NEVs to include not only battery electric vehicles but also plug-in hybrids and range-extender models. "I like this a lot because it is open to technological diversity. It makes a lot of sense."

Mahle's Lifecycle and Mobility division, which provides components and solutions for vehicles after they have been sold, contributes around 10 percent of group revenue and boasts "very healthy profitability".

The division has been expanding its China-focused offering aggressively. "We have 60,000 part numbers in our portfolio, of which we offer over 12,000 in China already," he said. "Just this year, we have added 1,500 new part numbers for the Chinese market."

Mahle's aftermarket growth strategy also includes a better understanding of the needs of China's 600,000 independent auto workshops — the end users who choose brands when repairing vehicles.

"The mechanics are workshop heroes, because they work in the most adverse environment, as you can imagine," he said.

To show them respect, Mahle has launched its "Workshop Heroes" campaign, portraying them as the "heroes" of modern mobility, using a Hollywood blockbuster theme, such as the "Filter and the Furious".

Mahle has tailored support programs for the mechanics, including a WeChat training channel where they can access resources and feedback easily.

"We want to be wherever the mechanics are and speak their language," he said, adding that the channel has attracted over 100,000 followers.

Mahle is also adding product categories for China, including batteries, spark plugs, engine oil and cooling fluids, while rolling out more workshop equipment for vehicle diagnosis and maintenance.

"In China, we want to continue to grow above the market," he said. "We have been managing to grow multiple times more than the market."

Grosse Kleimann said the company sees China not only as a production and sales market but as a source of innovation and business models to export elsewhere.

"It started, back in the day, as a production hub but obviously added the capability for R&D," he said, adding that four of its 11 tech centers are in Asia. "China for us is the driving force. It is the driving engine of the rest of the world."