China is steering ahead. Some 700,000 electric cars were sold in the Chinese market in 2017. And the projections are good thanks in part to government subsidies. This opens up huge opportunities for Sika’s extensive technology portfolio.

China is the world’s largest market for hybrid and fully electrically powered vehicles. But that’s not everything: Under the State Council’s “Made in China 2025” strategy, hybrid and electric cars produced in China are to account for 70% of the country’s total automobile sales by 2025. The state is building up an expansive network of charging points. The transition to e-mobility is driven by elevated emission levels in the big cities, falling battery prices, and growing wealth translating into increased car ownership.

The rising demand for electric motors creates additional potential for Sika in China.

Sika present in the Chinese market since 2003

Domestic manufacturers such as Great Wall Motors and BYD share China’s auto market with international brands such as Volkswagen, General Motors, and Honda which collaborate on joint ventures with local producers in China. While Chinese brands represent a market share of around 40% of internal combustion engine cars, they make up 95% of so-called new energy vehicles (NEV). Sika has been a dependable supplier to Chinese auto producers since 2003. Close on 20 domestic and international carmakers number among Sika’s loyal customer base for locally developed and produced damping, sealing, reinforcement, and bonding solutions. Thanks to its additional technologies for electrically driven vehicles, Sika is well positioned to profit from the e-mobility boom.

BYD (short for Build Your Dreams), for instance, is China’s largest provider of batteries and electric vehicles. With Warren Buffet as a major shareholder and Leonardo DiCaprio as brand ambassador, the group is gaining ground and striving to achieve a global market presence. A long-standing supplier of adhesives and acoustic solutions to BYD, Sika is looking to strengthen its cooperation with the company. NEVS and other start-ups as well as traditional, international corporations such as Geely-Volvo put their faith in Sika solutions developed and produced in China.

China is the largest automotive market in the world.

China is the largest automotive market in the world.

New e-portfolio, old virtues

Seizing the opportunities that present themselves, Sika aims to step up its investments in China and is planning an ultramodern technology center for electrically powered cars. Not only specific adhesives, acoustic solutions, and reinforcements for lightweight car bodies, but also technologies for assembling and protecting batteries as well as bonding, sealing, and insulating the extensive range of electronic components form a key and growing part of Sika’s automotive offering. The company can draw on its many years of experience both in the industry and with sealing and bonding. When it comes to the new markets and innovative applications, Sika remains committed to maintaining close customer relationships, global collaboration, and a strict customer-first attitude.