Chongqing - In 2022, the combined automobile production in Southwest China's Sichuan and Chongqing reached 3.18 million units, accounting for 12% of the national total, with 1.09 million units in Sichuan and 2.09 million units in Chongqing.
Achieving greater breakthroughs, Sichuan and Chongqing are joining forces to create a world-class intelligent connected new energy vehicle industry cluster.
With the strong industrial, supply, and logistics chains, the region has already attracted 45 vehicle manufacturers, including Chongqing Changan Automobile Co., Ltd, Seres, and Great Wall Motor, as well as over 1,600 supporting businesses, with a localization rate of over 80%.
Launching inter-vehicle logistics business
So, how is it that Changan's transport vehicle can carry automobiles produced by FAW-Volkswagen in Chengdu?
Sichuan and Chongqing have jointly launched the inter-vehicle logistics business to synergize and promote cost reduction and efficiency improvement in the automotive industry. In simple terms, the transport fleets of the two regions' automotive companies transport each other's vehicles during their return trips.
"By conducting this inter-vehicle logistics business, Changan Minsheng APLL Logistics Co., Ltd. (Changan Minsheng) and FAW Logistics (Chengdu) Co., Ltd have achieved a monthly average dispatch volume of over 3,000 vehicles, reducing transportation costs by 10% and shortening the waiting time for assembly by 40%," said Jiang Dongliang, Deputy General Manager of Vehicle Business Department of Changan Minsheng APLL Logistics Co., Ltd.
For instance, after unloading at a 4S dealership in Jinniu District, Chengdu, a specialized trailer transporting sedans proceeds to Longquanyi District, Chengdu, where it is loaded with vehicles from FAW-Volkswagen before heading towards Chongqing.
This trailer is a dedicated transport vehicle for Changan Automobile. It has been transporting Changan vehicles from Chongqing to various destinations nationwide for many years.
Reducing the cost of component logistics
Sichuan and Chongqing have also implemented a series of measures to reduce logistics costs, especially in the area of component logistics. Automotive companies in the region have employed various methods to improve the efficiency of component distribution.
For example, Changan Minsheng has established an intelligent unmanned warehouse where storage and handling robots are responsible for component transportation, and video scanning technology is utilized for component inventory. By quickly locating and assembling the required components using automated guided vehicles (AGV) robots, the time required for manual picking is reduced by half.
The staff is busy on the Chengdu Huachuan Electric Equipment Co., Ltd. production line in Longquanyi District, Chengdu. (Photo/Qi Lansen)
Additionally, automotive companies in Sichuan and Chongqing have implemented a circular pickup and delivery transportation model. Trucks collect goods in a predetermined sequence and time along designated routes while simultaneously unloading the empty containers from the previous collection.
"All goods are delivered to the warehouses or production lines of automobile manufacturers," Jiang added. "This application can reduce logistics costs by 3% to 5%, increase vehicle loading rates by 4% to 8%, and achieve 100% delivery timeliness."