SHANGHAI – Valeo announced on December 11 that it has invested ¥375 million in Cathay CarTech Fund – Cathay Capital’s first RMB fund, marking the French supplier’s deeper involvement in China’s dynamic automotive and mobility ecosystem.
China is the world’s largest automotive market and is leading the new mobility sector, while pursuing a strategic roadmap in the three revolutions taking place in the automotive industry: electrification, autonomous & connected cars and digital mobility.
As one of the world’s leading automotive suppliers, Valeo has invested more than 11 percent of its original equipment sales in R&D on a global basis. With more than 3,000 development staff in China, Valeo is also actively looking into the potential of local startups, which form a particularly vibrant ecosystem in China.
“Following investments in venture capital funds in the United States, Europe and Israel, Valeo is rolling out its open innovation ecosystem in China. Through investing in Cathay CarTech Fund, we plan to identify and develop more innovative products and technologies for our customers,” said Jacques Aschenbroich, chairman and CEO of Valeo.
Together with another cornerstone investor, Yangtze River Industry Fund, and other investors, Cathay CarTech Fund will focus on China with plans to invest a total of ¥1.5 billion in innovative companies and startups.
Cathay Capital was founded in 2006 and is a leading international private equity fund focused on cross-border investment, which is committed to supporting the growth and international development of innovative enterprises, small and medium sized enterprises and medium-sized enterprises from China, Europe and North America.
It currently manages eight funds outside China with total asset management of $2 billion, has invested 80 enterprises on three continents and set up offices in Paris, Shanghai, Beijing, New York, San Francisco and Munich, whose major investment areas including customer goods, healthcare, high-end manufacturing, modern service industry, environment, agriculture and food safety.