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Johnson Controls Strikes Agreement for Inroads into Chinese Car Battery Market

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Published on : Sep 14, 2015

Johnson Controls In., after almost 20 years of presence in China recently made announcement about a joint venture. The company announced of the launch of a joint venture for the manufacture and sales of automotive batteries in the world’s largest car market.

With the help of joint collaborations with Chinese companies, Johnson Controls Inc. emerged as a dominating company for car seat manufacture in China. The company is now adding a new partner Beijing Hainachaun Parts Co. Ltd. in pursuit to expand the production of energy-efficient advanced batteries. These batteries will facilitate start-stop technology for the car engine to shut when not in use to save fuel.

The president of the power solutions business at Johnson Control Inc. commented that by 2020, it is expected that almost 40% of new vehicles will be equipped with start stop technology.

Johnson Controls being a leading supplier of fuel-efficient batteries that have been helping carmakers comply with rules pertaining with global warming rules in order to curb carbon emissions from the tailpipes of vehicles.

Carbon rules are in place in Europe and the United States as well as in China, wherein the carbon emissions and consumption of fuel are needed to drop by 27% in the period 2015 to 2020.

However, the financial terms of the agreement have not been disclosed. Johnson Controls in partnering with a Chinese company which is an automotives parts subsidiary of the company Beijing Automotive Industry Co., the company which is the fifth largest automotive company in the world based in China as per 2014 sales.

The joint venture between Beijing Automotive Industry Co. and Johnson Controls will benefit which is expected to be the largest automotive batter market in the world by 2020.

The growth plan is expected to be the same what Johnson Controls Inc. did for seating business ventures 20 years ago.