Marelli Holdings Co Ltd, a Saitama, Japan-headquartered multinational automotive parts manufacturer with more than 50 manufacturing facilities across the world, will expand its engineering team from 800 to 1,000 in China over the next three years, said its top executive.

Many opportunities arise from Chinese automakers' rapid shift toward electrification and intelligence, especially in the form of software-defined vehicles, which are setting new benchmarks for speed, scale and innovation.

"At Marelli, we see this not just as a trend, but as a strategic imperative. China ranks among our most important markets and serves as a strategic hub for innovation, talent and global collaboration," said David Slump, the group's president and CEO.

The country's advanced supply chains also allow the company to localize core components, from electronics to lighting modules, with flexibility and cost-efficiency, he added.

Eager to seize more market share in China, Marelli further advanced its "China for China; China for Global" strategy by upgrading its R&D Center into the Asia Pacific Innovation Hub for Automotive Lighting in Shanghai in March, after relocating its global center for display R&D and production to Guangzhou, Guangdong province in late 2024.

"The hub in Shanghai will enhance coordination across Asia, Europe and the Americas, facilitating the integration and transformation of innovation capabilities from multiple regions," said Slump, highlighting that the facility will accelerate Marelli's global rollout of technological advancements.

With China and the United States agreeing to de-escalate trade tensions earlier this week, Slump said that these two countries are two major markets for Marelli.

"We are closely monitoring and assessing the situation, and are committed to minimizing any impact on our operations and customers," said Slump. He added that the company is already exporting advanced products and solutions from China to major markets, including Europe, Mexico and Southeast Asia.

Entering China for more than 26 years, Marelli currently runs 18 factories and eight research and development centers with a workforce of around 5,000 employees within the country.

As China accelerates consumption upgrading and technological innovation, the country's demand for high-tech products and service solutions from multinational corporations is rising, aimed at enhancing industrial capabilities, driving smart development, and jointly shaping a more sustainable and intelligent future, said Zhang Xiang, an auto industry researcher at the Beijing-based North China University of Technology.