German automotive supplier Continental AG plans to raise the Chinese market's share of its global business from about 10 percent at the moment to 20 percent over the next seven years.

Based in Hanover, Continental is a manufacturing company specializing in tires, brake system automotive safety and other parts for the automotive and transportation industries.

"We have high expectations of the Chinese market. After 2020, our sales target is more than 10 billion euros ($10.7 billion)", Elmar Degenhart, chairman of the executive board, Continental AG, said at the Shanghai auto show.

"China is the most dynamic market in the world. With a total of 22 million light vehicles produced in 2014, this is very important for Continental as an auto parts supplier in terms of supporting our growth plan.

"According to Continental and experts in China, annual light vehicle output in the nation will rise to around 30 million units by 2020 and its share of the global market is continuously increasing," he added.

Continental's sales in China last year totaled 3.7 billion euros, around 10 percent of the firm's global total. "We believe this proportion will be double to 20 percent in seven years," Degenhart said.

Yet Degenhart admitted the company is facing challenges. "We are relatively young in this market", he said, "But we are going really fast."

Continental's payroll in China has jumped from zero in 1994 to 23,000 at the moment.

According to Degenhart, this figure will soon reach the 30,000 mark.

"The target of 10 billion euros for sales in China means as much as over 30,000 employees in China, and that has to be managed and supported by our organization in America and Europe specifically," Degenhart said.

"That is why we decided two years ago to bring Ralf Cramer, a member of the executive board of Continental AG, to China as president & CEO of Continental China to head the company's business in this fast growing market, something which is unprecedented in our global operations," he said.

"The situation here in China is so exciting. There are so many opportunities and challenges with regard to customers' expectations and requirements. We've been fully convinced by our customers that we've made the right decisions," he added.

So far, the company has 25 production locations and 15 R&D centers in the country.

At the Shanghai auto show, the company held a media conference under the theme "Chinese Dream", to celebrate its 20th anniversary in China.

The conference was an opportunity for the company to display its customized solutions and products, and explain how it interprets the five megatrends of mobility in China: urbanization, health and safety, environmental protection, individual mobility and the information society.

duxiaoying1@chinadaily.com.cn

(China Daily 04/27/2015 page19)