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Autoliv and HSAE's Strategic Joint Venture

On October 9, 2025, in a significant step for automotive safety, Autoliv, Inc. (NYSE: ALV), a prominent player in the automotive safety systems industry, announced its plan to establish a strategic joint venture with Hangsheng Electric Co., Ltd. (HSAE), a leading automotive electronics developer based in China. This joint venture aims to innovate and produce advanced safety electronics tailored specifically for the dynamic Chinese automotive market.

The Partnership Details

The establishment of the joint venture is set to occur in the first quarter of 2026, pending necessary regulatory approvals from the Chinese authorities. Autoliv will acquire a 40% stake, while HSAE will maintain a controlling 60% stake in the venture. This collaboration underscores a mutual dedication to advancing automotive safety through technological innovation and long-term partnership.

Location and Focus

The new venture will have its headquarters and production facilities strategically placed near Shanghai, an essential hub for the automotive industry, and in proximity to several existing Autoliv sites in China. Its initial focus areas will involve developing advanced features that include:

• - Hands-On Detection (HOD) – enhancing driver awareness and interaction.
• - Pre-pretensioner Mechatronic Integration (PPMI) – aiming for more responsive occupant protection systems.
• - Electronic Applications for Seatbelt Systems – focusing on ensuring the utmost safety for passengers.

Objectives and Vision

This strategic partnership not only seeks to enhance safety products and systems but also aims to serve international markets, thereby aiding Autoliv in extending its reach beyond China. Sng Yih, the President of Autoliv China, emphasized the joint venture's potential to advance safety technologies, bring new innovations to the forefront, and develop integrated safety systems that meet the evolving needs of customers.

Yang Hong, President and CEO of HSAE, echoed this sentiment, noting that the collaboration would leverage China's sophisticated supply chain to deliver high-quality safety solutions. He remarked that this joint venture could act as a benchmark for the wider automotive industry in China, thereby supporting the transformation of the nation’s automotive sector from merely large-scale to a more robustly innovative industry focused on sustainability and quality.

Importance of Innovation

The joint venture is strategically positioned to harness the strengths of both organizations. Autoliv brings its global leadership in automotive safety, while HSAE contributes its specialized knowledge in automotive electronics. This collaboration seeks to deliver comprehensive solutions aimed at improving existing offerings and facilitating future advancements, catering to both Chinese and international original equipment manufacturers (OEMs) operating in the region.

With a growing emphasis on safety in the automobile sector, this partnership is a timely intervention that underscores the continuous pursuit of innovative, reliable, and integrated safety solutions for all road users.

About the Companies

Autoliv, Inc. is recognized worldwide for its commitment to automotive safety systems, having saved thousands of lives through its advanced products, including airbags and seatbelts. Operating in 25 countries with a strong research and development focus, it generated sales exceeding $10.4 billion in the prior year.

Hangsheng Electric Co., Ltd., based in China, specializes in the fields of infotainment systems and intelligent vehicle solutions, catering to a broad array of OEMs both domestically and internationally.

In conclusion, the collaboration between Autoliv and HSAE represents a significant milestone in the automotive industry's continuous evolution towards enhanced safety and innovation. As they move forward, the automotive landscape in China and beyond is poised for advancements that align with the future of mobility.