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Auto supplier Continental AG aims to double its China sales from last year's 4.5 billion euros ($5.1 billion) to 10 billion euros by 2020, its China head said on Monday.

"China is transforming into an innovative country. As the largest auto market in the world, China's auto industry is moving from volume to value," said Ralf Cramer, member of the executive board of Continental, and president & CEO of Continental China.

He said with its broad product portfolio, Continental brings to vehicles innovative technologies, which will sustain the company's double-digit growth in China over the next few years.

Cramer said the company also plans to raise Asia's share of its global business from 20 percent in 2015 to 30 percent in 2020.

"Continental is very likely to double its China sales by 2020, and it is reasonable for it to set that goal in Asia by 2020," said Zhang Yu, managing director of Automotive Foresight Co.

Zhang said international suppliers Continental and Robert Bosch GmbH are currently the top two players in China. They are equipped with mature technologies used for new-energy vehicles, intelligent car and vehicle networking, which represent the future of the auto industry. Local suppliers have yet to master those technologies.

Continental's global sales in 2015 were 39.2 billion euros, of which China accounted for about 11 percent.

The company has yet to release details of its sales so far this year, but Cramer said the China market achieved "double-digit" growth in the first quarter.

On Monday, the company announced it will establish a new research and development center in Chongqing, its latest move to boost development resources for the western China market.

The new location will host system requirement engineering, software development, electrical, mechanical engineering and test capabilities for the auto electronics applications, new-energy vehicle and industry business sectors.

The company said the Chongqing R&D center will make room for 400 developers till 2020 and have 1,000 employees by 2025. It is expected to be available for use in early 2018.

He said the auto industry has been developing rapidly in western China and more automakers are increasing their production capacity and R&D capabilities in this area.

"Continental's investment in the Chongqing R&D center follows our strategy - in the market for the market, to be close to customers and satisfy the fast growing demand from the Chinese market," Cramer said at a news conference during the 2016 Global Automotive Forum in Chongqing.

duxiaoying1@chinadaily.com.cn

(China Daily 06/08/2016 page13)