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China becomes proving ground for innovation, says Valeo executive

By Li Fusheng | chinadaily.com.cn | Updated: 2026-04-27 11:37
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Valeo showcases its solutions at the Auto China 2026 held in Beijing from April 24 to May 3. [Photo provided to chinadaily.com.cn]

China has become a proving ground where intelligent technologies, speed and competition are reshaping the global car industry, said Francois Marion, chief communications and sustainability officer of French supplier Valeo.

"I come back several times a year, partly to see friends, but also to witness the speed of development," Marion told China Daily during the Auto China 2026.

"Each time, I am struck by how fast new technologies reach the market," said Marion, who was president of Valeo China from 2018 to 2022.

That pace is redefining how global suppliers operate. Valeo, a long-established player in China, now sees the country not only as a manufacturing base but as a core innovation hub.

"We have really become a Chinese company in terms of capabilities," he said. "We can innovate, develop, manufacture and commercialize here—and what we develop in China is increasingly used globally."

One example is a five-way thermal management valve developed in Jingzhou, Hubei province, which improves electric vehicle efficiency.

While produced locally, the technology is now being applied in other markets, reflecting a broader shift toward "local innovation, global application".

China's intensely competitive environment is central to that shift. Marion described the market as a "fitness center" for global companies.

"The competition is very strong, but it makes us stronger everywhere else," he said.

He also noted a transition underway—from price-driven competition to what he calls "value competition".

"Value means more technology for the same price," he said. "We are competing through innovation, not just cost."

This dynamic is pushing suppliers to deliver more advanced, efficient systems without raising prices, accelerating the adoption of new technologies across the industry.

Beyond competition, speed has become the defining feature of China's automotive ecosystem.

Marion said development timelines have compressed dramatically. A headlight system that took 11 months to develop just a few years ago can now be completed in about seven months.

"This is the biggest challenge," he said. "Keeping up with the speed."

The payoff, however, is rapid market feedback. Technologies introduced within months can quickly be validated—or rejected—by consumers, allowing faster iteration.

China's role in the global industry is also expanding. Domestic automakers now account for more than 60 percent of the local market, while new energy vehicles have become a common sight on city streets.

For Valeo, this shift is changing both demand and innovation patterns. China is no longer just a destination for global technology—it is a source of it.

"Technologies can now be developed in China and then used elsewhere," Marion said.

The country is also contributing talent to Valeo's global network, with Chinese engineers and managers increasingly taking on international roles.

As Chinese automakers expand overseas, Marion expects deeper global integration.

He highlighted the importance of local production in overseas markets and pointed to growing cooperation between Chinese and European companies.

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