Aumovio sets up China management board for a deeper localization push

Aumovio has established a China management board, the first of its kind in the German automotive supplier's global operations, as part of its efforts to enable the Chinese team's faster and more agile responses to local customer needs while leveraging its role as a key driver of the group's global growth.

The move, unveiled on Tuesday, reflects a broader recalibration underway among global automotive suppliers as China's market dynamics, technological pathways, and pace of innovation increasingly diverge from those of Europe and other regions.

Aumovio CEO Philipp von Hirschheydt said the idea behind setting up the China management board is to empower the local team with a high level of decision-making autonomy.

"We want to build a deeply localized operating system that allows us to respond faster to the market and strengthen our competitiveness in China," said von Hirschheydt.

He added that the group had full confidence in its China team's ability to combine local insight with global resources. "We are confident that China can become one of the core growth engines for Aumovio globally," he said.

Why the market — and why now

Internally, the decision to establish the China management board was announced in November 2025, following months of preparation.

According to von Hirschheydt, setting up a board-level governance structure is far from straightforward, as it requires fundamental changes to internal processes and decision-making mechanisms.

"Establishing a board is not easy," he said. "You need to have the processes changed, and that's what we worked on for quite some time to ensure the board has a chance to be successful."

Aumovio has operated in China for more than three decades. Over that period, many of its internal processes were developed in Germany and later rolled out globally.

While those systems proved effective for many years, von Hirschheydt said they have become increasingly misaligned with the realities of the Chinese market.

"They were very good for many years," he said. "But now they are not fast enough anymore, and they're not adapted to the Chinese market. That needs to be changed."

In his view, China stands apart not only because of its market size, but also because of the speed and intensity of competition.

"The first difference is the pace of the market — the willingness to invest in becoming faster, better and more agile," he said. "That is something you don't experience as much in other markets."

Product usage patterns also differ significantly. "Many products we offer are used slightly differently in China," von Hirschheydt noted, pointing to China's distinct approaches to autonomous mobility systems and electronic architectures.

"In China, vehicle digitalization is significantly more important than in Germany," he said. "In Germany, chassis is still very important, which is not so much the case in China."

From presence to autonomy

Aumovio's China board has six members, five of whom are Chinese, which von Hirschheydt said aligns with its long-standing strategy of "in the market, for the market", with an emphasis on empowering local management teams.

What has changed, however, is the level at which that empowerment now operates.

"You can have the best cultural attitude," von Hirschheydt said, "but if you are strangled by processes from Germany, you have no chance."

The China management board, he explained, is intended to remove those constraints.

"That's why we established the China management board and changed processes — to give them a chance," he said. "Now is the right time. We have done everything necessary, and now we are ready to rumble."

While the board grants China greater autonomy, it is not designed to operate in isolation.

The group emphasized that close coordination with global teams will remain central, particularly in areas such as technology development, knowledge sharing and strategic alignment.

This dual-track approach — local decision-making combined with global collaboration — reflects a growing recognition among multinational suppliers that China is no longer just an execution market, but an increasingly important source of innovation.

Von Hirschheydt described China as a proving ground for organizational agility. "Being here in China is a great chance to see what we are capable of, how far we can go in terms of agility, and how much we can achieve in such an environment," he said.

Despite intense competition, Aumovio has continued to secure new business wins in China. Growth rates fluctuate depending on customer mix, but overall performance has reinforced management's confidence in the market.

He credited the China team's mindset as a key factor. "They always accept strong targets, saying,'Let's try, let's do it.' They consistently deliver," he said. "This 'can-do' and 'will-do' mentality is very much appreciated and is a base of success."

The growing weight

At present, Aumovio remains predominantly European in terms of revenue, with around 48 to 49 percent of sales generated in Europe. China currently accounts for about 14 percent, a figure von Hirschheydt believes should rise significantly.

"China is the biggest car market in the world, accounting for about 30 percent of total production volume," he said. "We are far from having 30 percent of our sales here. I would expect that figure to grow further."

The strategic logic is underpinned by shifting regional growth patterns. "Sales in Europe will shrink, but they will grow in China and Asia," he said. "We want a more rounded portfolio and an organization more balanced between regions."

Beyond scale, China's importance also lies in its role as a source of technical solutions.

"It is a give-and-take. We are going to invest in China and into Chinese innovations. Then, of course, these innovations will be valued and even expected to be shared with the rest of the world. Having an innovation hub in China will benefit the rest of the world," said von Hirschheydt.

Looking ahead to 2026, von Hirschheydt remains cautious about overall market growth, but confident in Aumovio's long-term positioning.

"With our strategy 'Lead, Transform, Deliver', if we focus on the right products, we will have a good chance. What I mean is that you need to have global significance. You need to be successful in local and regional markets, but also be able to balance between regions," he said.

This strategic focus and strengthened local autonomy are expected to support the company's financial targets in the coming years.

With its China management board now in place, Aumovio is betting that deeper localization — not just in products, but in governance — will be critical to competing in the next phase of the global automotive industry.

"We have promised to achieve midterm profitability of 4 to 6 percent again. And that is the next step we are very much focusing on," said von Hirschheydt.

lifusheng@chinadaily.com.cn