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Here's Why Delphi Technologies is Increasing Focus on China

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Delphi Technologies PLC recently announced the commencement of fully-localized production for Combined Invertor and DC/DC Convertor (“CIDD”) by its unit in Suzhou, China. The CIDD integrates an inverter and convertor into a single unit.

The company claims that apart from reduction in costs, weight and packaging requirements, the combination of inverter and DC-DC converter will enhance efficiency and thermal management. It can be availed by electric vehicles (EVs) and hybrids for managing electric drive systems.

China: A Key Growth Market

The Asia Pacific Region, particularly China, is a key growth market with considerable long-term growth opportunity, courtesy of increasing levels of vehicle production. Delphi Technologies continues to make investments in the region, directly as well as in the form of partnerships and joint ventures to benefit from growth opportunities.

The company has invested $80 million (550m CNY) for Electronics and Electrification in its Suzhou manufacturing unit. The unit will be fully operational in the second half of 2019. The company will also expand employee base in China from 2,987 to more than 3,500 by 2019, backed by $180-million (1.2bn CNY) investments across the country.

Kevin Quinlan, senior vice president and general manager, Electronics & Electrification for Delphi Technologies, stated, “The Chinese market is displaying significant demand for high quality next generation battery electric and plug in hybrid electric vehicles."

To strengthen the global network, Delphi Technologies is trying to keep itself ahead of competitors like BorgWarner Inc (BWA - Free Report) , Aptiv PLC (APTV - Free Report) and China Automotive Systems, Inc (CAAS - Free Report) .

 


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