(Yicai) March 10 -- Vibracoustic, a leading global supplier of air suspension systems, is stepping up investment in research and development in China so as to accelerate its localization strategy, according to the German firm's vice president of Asia-Pacific sales.

Vibracoustic has shifted to a 'local R&D - global production' strategy from a 'global R&D - local production' approach, Federico Fossati said in a recent interview with Yicai. The company’s operations in China fully leverage its global production and R&D resources to develop projects for domestic and international customers, he added.

Darmstadt-based Vibracoustic will continue to invest in local organizations, talent development, and core businesses, Fossati noted, adding that the company aims to achieve more innovation and R&D outcomes at its China tech center and help local clients expand overseas.

Vibracoustic's Wuxi Tech Center in China's Jiangsu province is responsible for R&D projects in the country and globallt, ensuring that cutting-edge technologies are transformed into competitive advantages for Chinese clients, Fossati said.

Vibracoustic began localized production of air suspension systems in China at the Wuxi factory in 2023. Chinese electric vehicle startup Xpeng Motors subsequently launched its G9 sport utility vehicle, the first car in the country to feature a dual-chamber air suspension system, thanks to the German company.

Federico also said that combining Vibracoustic's long-term global experience with China's rapid response to customer needs, while learning from past lessons, is essential for business success.

Around 2020, air suspension systems used to be mostly found in luxury cars priced at over CNY1 million (USD137,000), but the installation rate in Chinese-made cars has increased rapidly in recent years as a result of the rapid growth of China's new energy vehicle market.

Adoption of air suspension systems is soaring, according to a marketer at a Chinese automaker, who said it has become common practice to use them in cars priced around CNY300,000 (USD41,340). Many priced around CNY200,000 may soon be equipped with such systems, and it will not be surprising if it becomes a standard feature, the person added.

Big overseas suppliers, such as Vibracoustic, previously focused their R&D efforts outside of China, while their Chinese operations mainly centered around local applications and the production of some common products for international markets, said an executive at a domestic provider of air suspension systems. Now they are hiking investment in China to respond more quickly to changes in demand, the person said.

Sales of new cars equipped with air suspension systems in China surged 45 percent to around 816,000 units last year, with the adoption rate jumping to 3.6 percent from 2.7 percent, according to data from the Gasgoo Automotive Research Institute's Passenger Car Intelligent Driving Configuration Database.

Editors: Tang Shihua, Martin Kadiev