Nexteer Automotive’s Strategic Expansion in China: Pioneering Smart Manufacturing for EV and ADAS Growth

Nexteer Automotive’s recent strategic moves in China underscore its commitment to leading the next wave of automotive innovation. As global demand for electric vehicles (EVs) and advanced driver-assistance systems (ADAS) accelerates, the company is positioning itself at the forefront of smart manufacturing and intelligent chassis technologies. By investing in localized production, cutting-edge software, and strategic partnerships, Nexteer is not only addressing immediate market needs but also laying the groundwork for long-term growth in a rapidly evolving industry.

Smart Manufacturing: A Cornerstone of Nexteer’s China Strategy

Nexteer’s expansion in China includes the groundbreaking of a new 40,000-square-meter smart manufacturing facility in Liuzhou, set to become fully operational by early 2026 [2]. This facility replaces the company’s existing site and integrates energy-efficient infrastructure and advanced automation, aligning with China’s push for sustainable industrial development [2]. The plant will produce Column-Assist Electric Power Steering (CEPS) systems and modular power packs, critical components for intelligent vehicle platforms. By increasing in-house production of key components and co-locating core suppliers, Nexteer aims to optimize cost efficiencies and accelerate innovation [2].

This expansion reflects a broader industry trend: automakers and suppliers are prioritizing localized production to mitigate supply chain risks and reduce dependency on global disruptions [1]. For instance, South Korean automakers like Hyundai have increased their reliance on Chinese battery technology, signaling a shift in sourcing strategies that could further benefit companies like Nexteer [2].

Financial Momentum and Market Position

Nexteer’s strategic investments are already translating into financial gains. In the first half of 2025, the company secured $1.5 billion in new customer program bookings, with 39% tied to fully electric vehicle platforms [1]. Approximately $599 million of these bookings came from Chinese domestic OEMs, highlighting the company’s strong market penetration in the region [1]. This growth is driven by Nexteer’s alignment with electrification and ADAS trends, including the launch of 31 new customer programs such as its first dual-pinion electric power steering (DPEPS) system in China and a modular column-assist electric power steering (mCEPS) system in Europe [1].

The automotive gears market, which Nexteer supports through its intelligent chassis systems, is projected to grow at a compound annual rate of 3.0% from 2024 to 2030 [1]. This growth is fueled by the increasing adoption of steer-by-wire, brake-by-wire, and suspension-by-wire technologies—systems Nexteer is actively developing to enhance autonomous driving capabilities [3].

Innovation in Software and Partnerships

Nexteer’s MotionIQ™ software suite, unveiled in 2025, represents a significant leap in intelligent chassis technology. This AI-driven platform integrates motion control and predictive maintenance, enabling real-time optimization of vehicle performance and reducing development cycles for OEMs [3]. By embedding software into its hardware solutions, Nexteer is addressing the growing demand for software-defined vehicles, a key trend in the EV and ADAS sectors.

Strategic partnerships further bolster Nexteer’s position. The company’s collaboration with Chinese suppliers and its focus on modular, scalable systems align with the needs of global automakers seeking to reduce costs and time-to-market [2]. Additionally, Nexteer’s APAC expansion, including a new facility in Changshu, diversifies its geographic footprint and reduces customer concentration risk [2].

Long-Term Growth Potential

Nexteer’s investments in China are not just about scaling production—they are about capturing the future of mobility. As EV adoption accelerates and ADAS technologies become standard, demand for intelligent chassis systems will surge. Nexteer’s focus on smart manufacturing, software integration, and localized partnerships positions it to capitalize on these trends.

Conclusion

Nexteer Automotive’s strategic expansion in China exemplifies a forward-thinking approach to the challenges and opportunities of the EV and ADAS megatrends. By combining smart manufacturing, software innovation, and localized partnerships, the company is not only meeting current demand but also future-proofing its business. For investors, Nexteer’s alignment with global mobility trends and its robust financial performance make it a compelling candidate for long-term growth in the automotive sector.

Source:
[1] Nexteer Reports Strong First-Half 2025 Results, https://www.theindustrial.in/news/ea86fc5156/Nexteer-Reports-Strong-FirstHalf-2025-Results
[2] Nexteer Breaks Ground on New Manufacturing Facility in Liuzhou, China, https://www.theindustrial.in/news/19d35783fd/Nexteer-Breaks-Ground-on-New-Manufacturing-Facility-in-Liuzhou-China
[3] Nexteer Unveils Its MotionIQ™ Software Suite for Intelligent ... https://www.taxtmi.com/news?id=52300