Nov 4 (Reuters) - German machine and car parts maker

Schaeffler on Tuesday entered into partnership with

Neura Robotics to jointly develop and supply key components for

humanoids.

Schaeffler will integrate a mid-four-digit number of

humanoids into its production by 2035, the company said in a

statement.

WHY IT'S IMPORTANT

Europe's auto industry has been under pressure due to U.S.

import tariffs, weaker car demand, and intensifying competition

from Chinese firms, prompting cost cuts, supply chain shifts and

a search for new growth avenues.

Echoing the trend, Schaeffler said in September, it expected

up to 10% of group sales in 2035 to come from sectors it has

been actively exploring, including defence, electric vertical

take-off and landing aircraft, and humanoid robotics.

Additionally, the company said it would sell its

turbocharger business in China, which generated revenue of about

100 millions euros in 2024.

INVESTMENT IN AI

With growing interest in AI-driven efficiency and

optimization, many companies have been highlighting increased

investments and enthusiasm in the sector.

"While we don't give a number in terms of an investment, we

see an increasing desire to explore the opportunities in this

field. This type of investment has two ends: internal efficiency

and extra additional business potential i.e. in AI driven

humanoid robots," CEO Klaus Rosenfeld told Reuters.

KEY QUOTES

"In terms of business dynamics the fourth quarter is

typically a bit weaker than the other quarters. In terms of

market development, the environment on the automotive side

remains challenging," Rosenfeld said.

"Humanoids will become a very interesting activity for

Schaeffler," he added.

Commenting on the sale of the business in China, Rosenfeld

said "the transaction is aimed at streamlining the portfolio and

also divesting activities that are not strategic or not

performing to the level we want them to perform".