Produced by Zhineng Zhixin

At the 2026 Paris Motor Show, Chery inked European collaboration agreements with two leading international Tier 1 suppliers.

◎ Bosch will supply intelligent assisted driving systems for six new European models, leveraging its fourth-generation multi-purpose camera MPC4 and integrated parking and driving systems. Mass production is slated for 2028, with a projected cumulative volume exceeding 800,000 units over five years.

◎ AUMOVIO (a car electronics business carved out from Continental in 2025) has secured contracts for airbag control units (ACUs), to be manufactured at its facility in Timisoara, Romania, for local European models.

One deal focuses on assisted driving, while the other centers on passive safety. Together, they underscore a shift in Chinese automakers' supply chains from mere car sales to local development and production as Chery expands in Europe.

Part 1: Chery's European Foray Demands a Local Supply Chain

To grasp the significance of these two partnerships, we must first examine Chery's progress in Europe.

On October 13, 2026, at the Paris Motor Show, Chery unveiled its European strategy.

Since entering Europe in 2024, the CHERY brand has expanded its footprint to 18 countries, with cumulative sales surpassing 160,000 units. The objective is to reach 27 markets and 1,143 sales and service outlets by the end of 2027. OMODA and JAECOO are also ramping up their presence.

Chery is advancing the EBRO project in Barcelona in collaboration with Spain's EV MOTORS, aiming to complete pre-production of the JAECOO 5 by the end of December 2026 and commence series production in the first quarter of 2027.

Chery is transitioning from selling Chinese-made vehicles in Europe to producing local models in European factories. This shift entails entirely different supply chain requirements.

When vehicles are manufactured in China, domestic suppliers handle integration and verification, with delivery via sea freight. For European production, component procurement must factor in logistics cycles, inventory management, production rhythms, quality traceability, and after-sales service.

Automotive factories impose stringent demands on the stability of critical component supplies. A disruption in the supply of a safety controller or sensor could halt vehicle production, and European factories cannot coordinate with suppliers thousands of kilometers away as seamlessly as Chinese factories can.

Chery opted for Bosch and AUMOVIO due to their established manufacturing and service networks in Europe, which mitigate engineering coordination challenges in the early stages of supply chain construction.

Why Did Chery Choose Bosch for Its European ADAS Project?

The scale of Chery's project with Bosch is substantial. Six models, with a cumulative volume exceeding 800,000 units over five years, average approximately 160,000 units annually, or roughly 26,700 units per model.

The project leverages Bosch's fourth-generation multi-purpose camera MPC4 and integrated parking and driving systems. MPC4 is a sophisticated front-view perception platform that employs image algorithms and AI to identify vehicles, pedestrians, cyclists, lane markings, and traffic signs, supporting functions such as automatic emergency braking and lane assistance.

Bosch has revealed that this series has secured design wins for over 50 models, with order volumes reaching the tens of millions.

Chery's decision to utilize Bosch in Europe stems from the differing requirements for assisted driving in the European market compared to China.

China's intelligent driving sector has witnessed rapid advancements in recent years, with urban navigation, automatic parking, and end-to-end solutions emerging as competitive focal points.

In Europe, vehicles must first comply with local regulations and whole vehicle type approval. The EU's General Safety Regulation (GSR), effective from July 2024, mandates intelligent speed assistance, automatic emergency braking, lane keeping, and driver monitoring for new vehicles. Euro NCAP also updated its evaluation system in 2026, placing greater emphasis on collision prevention, pedestrian and cyclist protection, and the reasonableness of assisted system interventions in real-world conditions.

Transplanting mature domestic intelligent driving software directly to Europe would necessitate extensive local verification.

Traffic signs, road infrastructure, speed limits, and driving environments vary across European countries, requiring adaptations in functional boundaries, warning strategies, and human-machine interfaces.

Bosch's seasoned European engineering teams, testing systems, and project experience can assist Chery in expediting this process.

Chery values Bosch for its combination of a mature mass-production platform and local engineering capabilities in Europe. For models sold in multiple countries, development costs, regulatory compliance, and delivery stability are more pragmatic considerations than incorporating higher levels of intelligent driving functionality.

Why Is AUMOVIO's ACU Project Noteworthy?

Compared to Bosch's 800,000-unit ADAS order, AUMOVIO's contract for airbag control units may appear minor, but it offers the most tangible example of a localized European supply chain.

◎ AUMOVIO, originally Continental's automotive business, was spun off and listed on September 18, 2025, inheriting Continental's R&D and manufacturing capabilities in automotive electronics, sensors, brake control, and passive safety.

The collaboration between the two companies spans over 25 years, dating back to the Continental era. This time, the cooperation extends to Europe: AUMOVIO will manufacture ACUs at its factory in Timisoara, Romania, for Chery's local European models.

◎ The ACU is the core controller for passive safety. In the event of a collision, it integrates sensor signals and safety algorithms to assess collision intensity, direction, and type, triggering airbags and seatbelt pretensioners within a specified timeframe, directly influencing occupant safety.

Its development encompasses hardware, software algorithms, and sensors, requiring calibration and collision verification in conjunction with the vehicle's structure and restraint system. Different vehicle models, with varying body structures, collision pulses, and airbag configurations, necessitate distinct safety development approaches.

Such products are also subject to ISO 26262 functional safety, software and hardware version management, production consistency, and quality traceability. In the event of issues, suppliers must swiftly identify affected batches and collaborate with automakers in investigations, repairs, or recalls.

By procuring ACUs directly from AUMOVIO's local factory, Chery's European plant eliminates cross-border transportation, streamlining engineering and quality collaboration. Timisoara, situated in Romania, is part of the EU manufacturing system, enabling shorter regional supply chains and reduced cross-border inventory.

The value of localized ACU procurement lies in providing a more stable supply of safety components for Europe's production system. This project also marks a significant milestone for AUMOVIO following its early 2026 proposal to "support Chinese OEMs in going global."

Part 2: What Capabilities Are Two International Tier 1 Suppliers Helping Chery Build?

Chery's overseas supply chain now features two collaborative models.

◎ Bosch provides a mature intelligent driving product platform and cross-regional development, verification, and market adaptation capabilities.

◎ AUMOVIO directly establishes automotive electronics manufacturing in Europe, enabling local production, local delivery, and subsequent quality support for Chery.

The former emphasizes engineering development and regulatory compliance, while the latter focuses on regional manufacturing and supply chain assurance.

Localization in the automotive industry has never adhered to a one-size-fits-all approach. High-value electronic components can leverage globally unified technology platforms for regional development, while other products are manufactured near target markets to better align with vehicle production.

Chinese automakers cannot fully entrust globalization to Tier 1 suppliers. Product definition, vehicle platforms, electronic and electrical architectures, system safety objectives, procurement management, and ultimate quality responsibility must remain in-house. The key is integrating external suppliers into their product development systems to form a supply chain organization model suited for European operations.

From the perspective of international Tier 1 suppliers, Bosch, Continental, and ZF have traditionally served Volkswagen, BMW, Mercedes-Benz, and Stellantis.

Chinese automakers entering Europe bring new clients to these suppliers. With shorter development cycles and faster vehicle launches, Chinese automakers impose new demands on suppliers regarding responsiveness, cost, and local delivery.

Bosch's MPC4 and AUMOVIO's ACU demonstrate that international Tier 1 suppliers have incorporated Chinese automakers' overseas models into their regional business systems. Chinese clients no longer bring only component orders for the Chinese market but also new projects in Europe, Southeast Asia, and the Middle East. The global automotive supply chain's client structure is evolving.

Why Are International Supply Chain Partners Increasingly Important for Chinese Automakers Going Global?

Chinese automakers have established a robust domestic components ecosystem, with strong capabilities in power batteries, electric drives, thermal management, cockpit electronics, and intelligent driving. However, relocating the entire domestic supply chain to Europe entails significant initial investments, local recruitment, equipment importation, customer certification, and capacity utilization challenges.

Chinese suppliers establishing new factories in Europe face issues related to initial investment, talent acquisition, certification, and capacity utilization. When vehicle sales have not yet reached scale, the payback period for new factories is lengthy. By leveraging Bosch and AUMOVIO's existing European manufacturing and R&D resources, Chery can reduce the initial investment in local supply chains.

The EU is promoting new local manufacturing and industrial chain policies aimed at increasing the proportion of local production and procurement in Europe's automotive industry. Regional manufacturing, supply chain transparency, and component sourcing have become essential operational considerations for automakers.

As Chery gains a foothold in Europe with the help of international Tier 1 suppliers, can Chinese domestic component companies keep pace? As overseas production scales up, more orders will flow to international suppliers with European factories and certification experience.

To maintain competitiveness, domestic Tier 1 suppliers must gradually establish overseas engineering, quality, and delivery systems or collaborate with local partners for regional manufacturing. This poses new requirements for China's automotive supply chain.

Summary

The 2026 Paris Motor Show witnessed Chery signing two projects with Bosch and AUMOVIO, marking a new phase in China's automotive globalization.

Bosch handles ADAS in Europe for six models, with over 800,000 units over five years; AUMOVIO supplies ACUs for European models from its Romanian factory. One provides cross-regional technology development and verification capabilities, while the other offers local manufacturing and delivery capabilities.

For Chery, these collaborations enable it to establish a locally adapted supply chain more swiftly during the European manufacturing phase. For international Tier 1 suppliers, Chinese automakers going global bring new clients and markets.