New Hella and BHAP joint China venture

Lighting firm Hella has formed a joint electronic components venture with a BAIC subsidiary to meet electrification, digitalisation and autonomous vehicle demands.

Hella has signed a contract with Beijing Hainachuan Automotive Parts (BHAP) to form the Hella BHAP Electronics (Jiangsu) Co in the second half of this year.

The two have been involved in a joint venture for lighting systems since 2014.

“China is one of the fastest growing automotive markets in the world. Because of automotive market trends such as autonomous driving, digitalisation and electrification, we expect a continuously increasing demand for our electronic components,” Hella chief executive officer Dr Rolf Breidenbach says.

BHAP chairman Cai Suping says the new joint venture profits from integrating both the market access of the BAIC Group and the technological expertise of Hella in the field of sophisticated electronics components. It will further enhance internationalisation and strengthen production and development capabilities to become a global automotive supplier, he says.

The production facility will be in Zhenjiang where a new electronics plant is being established, comprising a 7000 square metre production area and involving more than 200 employees.

Production is expected to start early in 2020, with various electronic control units for BAIC Group customers. This will be extended to include components concerned with energy management and driver assistance.