Johnson Controls to ramp up mainland output of batteries for ‘start-stop’ engine technology

Johnson Controls plans to double its output of vehicle batteries on the mainland by 2020, spurred by buoyant demand for new engine technology designed to meet tightened fuel-efficiency targets.

Kenneth Yeng, chief executive of Johnson Controls’ power solution operations in China, told the South China Morning Post that the company would set up two plants with a combined annual capacity of 13.5 million batteries, a move to consolidate its leading position in the start-stop system segment, a technology that automatically shuts down and restarts a vehicle engine to reduce idling time.

The company, the world’s largest manufacturer of vehicle batteries, currently has mainland facilities in Chongqing and Zhejiang which can jointly produce 16 million batteries a year.

“The Chinese government’s resolution in cutting pollution has driven substantial demand for advanced batteries,” Yeng said. “In this round of national campaign to improve fuel efficiency and protect the environment, drastic actions were taken by automakers to meet the targets.”

Johnson Controls’ production of AGM batteries, a main component of the start-stop system, is expected to hit 3 million units this year, double the volume shipped in 2016 as assemblers including home-grown auto brands increase orders, he added.

Johnson Controls is the runaway leader in the segment with a 70 per cent share of the market.