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Dekra Group mulls further expansion in nation

By ZHONG NAN | China Daily | Updated: 2024-03-26 11:12
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Kilian Aviles, senior vice-president for Dekra APAC and managing director of Dekra China. [Photo provided to chinadaily.com.cn]

Aviles noted that China's focus on sustainable development and environmental preservation is poised to spur demand for green technologies and services ensuring adherence to environmental standards.

"This trend aligns well with Dekra's strategic focus areas, including future vehicles and mobility, information and cybersecurity, sustainability, artificial intelligence and advanced analytics, and remote services, presenting significant investment opportunities," he added.

This stance is supported by recent data from the Beijing-based China Association of Automobile Manufacturers. China exported 822,000 automobiles in all, including electric vehicles, during the January-February period, up 30.5 percent year-on-year.

Established in 1925, Dekra has to date built a market presence in more than 60 countries and regions across the world. The company has forecast sales revenue to surpass 4 billion euros ($4.33 billion) in 2023. Supported by 2,000 employees, the German company currently runs testing facilities, laboratories and offices in 20 cities on the Chinese mainland, including Beijing, Shanghai and Hangzhou, Zhejiang province.

Highlighting the immense potential in China's ongoing efforts to enhance its attractiveness to foreign investment, particularly through regulatory reforms, infrastructure development and market access facilitation, Aviles stressed that Dekra remains confident in the country's ability to maintain its position as a premier destination for foreign investment.

Apart from providing TIC services to Chinese exporters, Dekra offers technical support and advisory services to help them improve their product design, manufacturing processes, and sustainability practices. This can lead to better product quality, efficiency and environmental performance, further boosting their competitiveness abroad.

Chu Xiangyin, a professor of supply chain management at the University of International Business and Economics in Beijing, said engaging with foreign TIC groups can help Chinese companies mitigate risks associated with noncompliance, such as product recalls, legal challenges or damage to brand reputation.

In the meantime, he said that the significant market demand and growth opportunities within China in areas such as new energy, digital transformation, intelligent manufacturing and e-commerce, along with the country's extensive industrial support and integration capabilities, are prompting an increasing number of multinational companies to enhance their investments in trade in services-related businesses and expedite their research and development activities within the country.

In contrast to goods trade, trade in services refers to the sale and delivery of intangible services such as transportation, finance, tourism, technical and professional services, construction, advertising, computing and accounting.

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