On December 3, the Chinese automobile and aviation seat manufacturer, ZJTC Technology Group, issued an announcement that the company received the "Letter of Intent for Cooperation" issued by SAIC Volkswagen Co., Ltd., and SAIC Volkswagen plans to select ID.4 and Skoda brand car seats Supplier of chair parts. Relying on industry-leading seat lightweight technology, the company is expected to be a breakthrough in the passenger vehicle supporting field, achieve business penetration of the head joint venture brand, and break the monopoly of foreign brands on new energy vehicle seats.
The announcement disclosed that this cooperation with SAIC Volkswagen involves the supply of car seat parts for 8 models including ID.4 and Skoda brand. This cooperation means that ZJTC and Volkswagen China have achieved breakthroughs in business cooperation. Based on this, the company is expected to enter the SAIC Volkswagen new energy product camp and lead the process of domestic substitution of passenger car seats.
According to the plan proposed by the Volkswagen Group in 2019, between 2020 and 2024, Volkswagen will invest 60 billion euros in hybrid power, electric mobility and digitalization, of which 33 billion euros will be invested in pure electric fields. It is estimated that by 2025, Volkswagen's annual sales of electric vehicles will reach 3 million, of which 1.5 million are in China. By 2028, Volkswagen will produce 22 million pure electric vehicles, 50% of which will come from China. In 2019, Volkswagen released the ID.3 model based on the Modular Electric Drive (MEB) platform, which has achieved outstanding sales in Europe and other regions. Driven by this, Volkswagen released the second mass-produced model ID.4 based on the MEB platform this year, and the domestic version ID.4 was also unveiled on November 3. With the strong appeal of the Volkswagen brand, strong price-performance ratio and superior space interior configuration, ID.4 is expected to become a popular domestic electric vehicle. With the continuous deepening of Volkswagen's layout in the field of new energy vehicles in China, the company's SAIC-Volkswagen seat supporting business has a broad space, and subsequent progress is worthy of attention.
Industry leader in seat lightweight technology
ZJTC is a leading enterprise in China's automotive seating industry. Its seating products are mainly used in construction machinery, commercial vehicles, passenger vehicles, and aviation. The company expanded its passenger car seat business in 2016. SAIC is a strategic key customer of the company's passenger car business. It has already achieved mass supply of SAIC-GM, SAIC Roewe i5 and Roewe i6. Aviation seats are supplied to Airbus and Boeing.
In the field of construction machinery seats, the company is a seat supplier for leading companies such as Caterpillar, Sany Heavy Industry, Zoomlion, XCMG, Liugong, Lonking, etc.
ZJTC seat lightweight technology has accumulated deep, aluminum alloy frame car seat products are in the forefront of the industry, and have the technical strength to support the world's top new energy automobile companies. Compared with traditional fuel vehicles, new energy vehicles have higher requirements for lightweight vehicles. With the accumulation of powerful seat lightweight technology, the company is expected to achieve breakthroughs in the field of new energy vehicles.
According to calculations by research institutions, the size of my country's passenger car seat market exceeds 100 billion yuan, and more than 90% of the share is occupied by foreign/joint venture seat companies. Domestic suppliers are concentrated in the low-end market. As the demand for cost reduction by automakers becomes more and more urgent, the process of domestic substitution in the car seat industry is expected to accelerate. The company stated that the acquisition of the "Letter of Intent" for the SAIC Volkswagen project signifies that the company's passenger car seat business will enter the mainstream joint venture brand field, and will further promote the company's passenger car seat business scale and industry status.