Gasgoo Munich- Speed in China's automotive market is no longer measured only by how quickly new models reach the market. Vehicle architectures and powertrains continue to evolve, while model development cycles are becoming shorter. That pace is also rippling upstream through the supply chain.For global tire makers, keeping up with Chinese automakers means more than accelerating deliveries. They must complete the entire process—from requirements analysis and product development to testing, validation and volume production—within increasingly compressed timelines, while meeting the multiple performance demands of new energy vehicles (NEVs).Against this backdrop, "global R&D, deployment in China" has taken on a broader meaning. It is no longer simply about bringing mature products developed overseas into the Chinese market. Global technical capabilities must be closely aligned with China's customer needs, development cycles and manufacturing system.Pirelli CEO Andrea Casaluci has witnessed this change firsthand. In 2015, he moved to China to serve as Pirelli's Chief Commercial Officer Asia & Pacific. At the time, China was primarily regarded as a highly competitive manufacturing base. Pirelli developed and produced tires locally for Western automakers manufacturing vehicles in the country, while most R&D was still conducted in Europe before being introduced into China.More than a decade later, China plays a very different role within Pirelli's global organization."China's automotive industry has undergone tremendous change and has become an important global center of innovation," Mr. Casaluci said in a recent interview with Gasgoo.That assessment reflects broader changes across the industry. Monthly NEV penetration in China topped 60% at one point in 2026. Advanced technologies—including software-defined vehicle architectures, autonomous driving and electrification enabled by new powertrain technologies—are also developing rapidly and gaining wider application.Over the past five years, Pirelli has established close partnerships with a group of emerging Chinese premium NEV manufacturers, some of which have already begun building presence in overseas markets.Serving this market now requires far more than local production and original-equipment supply. Pirelli must understand customer needs earlier, bring its global R&D resources and China-based teams into closer coordination, and move new technologies into products and industrial production more quickly.A key part of that effort is the Pirelli APAC R&D and Innovation Center. Opened in 2022 at HIXIH Industrial Park, Yanzhou, Shandong Province, the center forms part of Pirelli's global R&D network. Rather than serving merely as a local execution arm for technologies developed at headquarters, it connects global technology development with applications in the Chinese market.A Pagani Utopia Roadster equipped with Cyber™ Tyre technology completes a journey of more than 1,500 kilometers across Europe; image source: PirelliAccording to Mr. Casaluci, most of Pirelli's new technologies are developed at its Milan headquarters. The APAC R&D and Innovation Center works in parallel to apply those technologies in China and bring related products into industrial production. As its local capabilities grow, the center can identify the needs of Chinese customers earlier and more accurately, while providing the headquarters R&D team with input and recommendations from the market.Bringing R&D closer to customers, however, is only the first step. Chinese automakers update their products quickly, while vehicle architectures and powertrains are still evolving at pace. That leaves less time for tire development and validation.Mr. Casaluci acknowledged that this presents a significant challenge for Pirelli. Virtualizing the development process has become a key part of the company's response.Through modeling, simulation and digital-twin technologies, Pirelli can closely reproduce how a tire will behave under real-world conditions. Most development work can then be completed virtually, with physical tire prototypes produced only in the final stages. According to Mr. Casaluci, this approach can accelerate development by at least 30%, while reducing the number of physical prototypes and the associated environmental impact.The value of virtual development extends beyond shorter lead times. Tires for NEVs must strike a new balance across several areas of performance. The added weight of the battery requires a higher load index, while the greater torque delivered by electric powertrains places higher demands on grip. Rolling resistance must also be reduced to support driving range.At the same time, as conventional engine noise recedes, the sound generated where the tire meets the road becomes more noticeable to vehicle occupants. Noise reduction and ride comfort have therefore become increasingly important.These combined requirements take on a more concrete form in Pirelli's projects with Chinese automakers. To meet demand for low rolling resistance across different operating temperatures, Pirelli has developed an ultra-low-rolling-resistance solution in China. It has also introduced a high-load-index solution for electric SUVs, whose batteries add substantially to overall vehicle weight.The changes emerging from China are not limited to the physical performance of tires. The rise of software-defined vehicles and connected-vehicle capabilities is also redefining the relationship between the tire and the wider vehicle system.Mr. Casaluci believes that tires will "no longer serve only as a key component that transfers forces from the vehicle to the road, but will become intelligent devices capable of collecting data and providing information and instructions to vehicle dynamics control systems."Cyber™ Tyre technology; image source: PirelliThe Cyber™ Tyre offers a more tangible example of this vision. Sensors inside the tires collect data while the vehicle is in motion. Pirelli's software and algorithms then process the information and communicate it to the vehicle's electronics in real time, allowing data gathered by the tires to support vehicle driving and control functions.Developed at Pirelli's headquarters in Italy, the Cyber™ Tyre is now being prepared for deployment in China. Pirelli is working closely with several local automakers to bring the technology to the Chinese market as soon as possible.Whether Pirelli is responding to emerging demand in China or deploying global technologies locally, an effective manufacturing system is essential to turning development work into products. Pirelli currently operates three plants in China, making local production a key foundation of its ability to serve the market.During his latest visit to China, Mr. Casaluci toured Pirelli's upgraded plant in Yanzhou, Shandong Province. The visit gave him a more direct view of how plans developed at headquarters were being implemented on the factory floor. In his assessment, the plant has already reached a high level of automation, digitalization and electrification.Pirelli's manufacturing ambitions go beyond equipment and production lines. As these upgrades continue, data is also assuming a more central role."Our goal is to transform Pirelli into a data-driven company, with data at the heart of every business process, spanning production, R&D, logistics and administration," Mr. Casaluci said.Pirelli's Shenzhou plant; image source: PirelliBeyond the digital transformation taking place inside its factories, Pirelli is also reconsidering the distance between production and the markets it serves. Over the past five or six years, the COVID-19 pandemic, logistics disruptions, the Russia–Ukraine conflict and rising energy costs in Europe have all placed pressure on cross-regional production and supply.Mr. Casaluci said these experiences had reinforced Pirelli's decision to make a "Local-For-Local" approach the top priority of its supply chain strategy. Today, more than 90% of the products Pirelli sells in China are made locally. The proportion exceeds 90% in Europe as well.During the interview, Mr. Casaluci also shared his views on the global business development of Chinese automakers, the future direction of the tire industry, the next stage of development for Pirelli's plants in China and the cultivation of local talent.For more insights, watch the full interview.