Eberspaecher China expansion: Supplier to shift factories and R&D to China to triple Asian sales
Eberspaecher shifts factories and R&D to China to grow Asian sales from 8% to 24%, diversifying into battery housings, hydrogen tech and thermal systems.
Immediate shift of production and development to China
Eberspaecher announced a strategic pivot to expand both manufacturing and development capacity in China, aiming to make Asia a principal growth region. Company leaders said the move responds to faster development cycles and strong technological progress among Chinese automakers. The plan envisions the Asian share of group revenues rising from about 8 percent today to roughly 24 percent within three years. Executives emphasized that the expansion will supplement, not replace, the company’s European activities.
Orders from Chinese OEMs and new product wins
Management reported recent contract wins with Chinese vehicle manufacturers that span conventional and electric powertrains. A notable award covers steel battery housings, a product type that signals deeper involvement in EV supply chains. Leaders said these wins demonstrate competitiveness in China and the likelihood that some China-made products will be sold into European markets as Chinese brands expand internationally. The company stressed that local engineering and systems work will be necessary to meet shortened development timelines.
Leadership framing and view on early EV efforts
Co-CEOs Jörg Steins and Martin Peters presented the China strategy as a decisive response to market realities and past missteps in electrification. Peters characterized the first generation of electric vehicles developed under German regulatory pressure as broadly unsuccessful in global markets, saying the experience informed the new Asia focus. Steins told reporters that technological leadership and abbreviated development cycles in China make on-site development essential. Both executives framed the approach as decentralization to remain competitive across multiple regions.
Product portfolio: Beyond exhaust systems
While historically known for exhaust components for internal combustion engines, Eberspaecher is broadening into low-emission and low-carbon technologies. The company is developing components for fuel cells, systems to capture and reuse carbon dioxide, and thermal-management units for electric vehicles that control battery temperature and cabin climate. Partnerships with external firms are part of this push, including collaborations on electrolysers and hydrogen storage. Management said these moves position the supplier to serve vehicles powered by electricity, hydrogen and renewable fuels, as well as traditional engines.
Financial backdrop and restructuring effects
Eberspaecher reported a challenging year marked by falling sales and a dip in operating profit as it executes restructuring measures. Net sales fell about 7.3 percent to roughly €2.5 billion, while gross sales — which include pass-through costs for catalytic monoliths — were reported at about €5 billion. Adjusted operating profit (EBIT) declined by about a quarter to €86.3 million, yielding an operating margin near 3.5 percent after restructuring charges. The company has closed facilities in Herxheim and Hermsdorf as part of cost and capacity realignment.
Calls for German reform amid global competition
Senior management used the announcement to call for broader structural reforms in Germany to preserve industrial competitiveness. Peters urged policymakers to tackle social-system and tax burdens, warning that without such reforms German firms risk losing ground to international rivals. He said the company will maintain operations in Europe but must build up where customers and development speed dictate. The comment framed the China expansion as both strategic necessity and a response to insufficient domestic reform.
Eberspaecher’s China expansion represents a substantial rebalancing of the family-owned supplier’s global footprint, pairing manufacturing growth with increased development presence in Asia. Executives say the approach is designed to capture new orders from Chinese original equipment manufacturers while continuing product diversification into battery, hydrogen and thermal technologies. The company maintains it will keep its European operations intact even as it accelerates investment and personnel in China to align products and timelines with regional market leaders.
