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Sichuan and Chongqing Register Deep Coordination in Developing Automobile Industry

By Jieyu Wang, Kailong TanICHONGQING|Jul 24,2020

As China’s key automobile industry cluster, Sichuan and Chongqing region has built an automobile industry chain able to coordinate and support Sichuan-Chongqing deeply integrated development in many fields such as technology, R&D, and talent. Such in-depth coordination is partly attributed to their long-term mutual trust, and partially those benefit from a package of measures to build the Chengdu-Chongqing economic circle.

The workers of Dongfeng Sokon are assembling the car at the Zone A of Shapingba Industrial Park.

In 2019, Chongqing manufactured 1.38 million cars and reaped revenue of 322.7 billion yuan; Sichuan produced 1.117 million vehicles (including those by FAW-VW Chengdu branch) and generated a revenue of about 300 billion yuan. Both Sichuan’s and Chongqing’s car output accounts for more than 10% of the national total, laying a solid foundation for their effort to build a world-class automobile industry cluster.

“Sichuan and Chongqing have different priorities in developing the automobile industry. Intending to form an industry chain and cluster together, both places have started studying targeted policies.” Now, Chongqing can produce 4 million cars annually, and Sichuan is speeding up, introducing mid- and high-end automobile products. So far, there are FAW-VW, FAW TOYOTA, Dongfeng Peugeot-Citroën, Volvo, Geely, and other car enterprises in Sichuan. As their industries become more and more overlapping and integrated, Sichuan-Chongqing integrated development has seen constant improvement.

For example, Chang’an Automobile has dozens of suppliers and more than 60 dealers in Sichuan, while Dongfeng Sokon has 37 support enterprises with an annual purchase value of about 1.3 billion yuan.

Apart from business, the relationship between Sichuan and Chongqing enterprises in talent exchange has also grown closer. For example, doctoral graduates of the University of Electronic Science and Technology of China can apply for a job in Chang’an Automobile. Postgraduates can work at China Automotive Engineering Research Institute Co., Ltd. as an engineering intern, and back-up talent such as engineers of China Automotive Engineering Research Institute Co., Ltd. can be recommended to the University of Electronic Science and Technology of China for further study. Sokon Group plans to carry out production, education, and research cooperation with the University of Electronic Science and Technology of China in 5G plus automobile.

Looking ahead, Sichuan and Chongqing will make better use of their respective resource strengths in the automobile industry, continue to improve mutual complementarity and cooperation, move forward with technological innovation, and forge an ever closer tie in industry chain coordination.

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