Chongqing- The first half of this year has marked an important period for the Chongqing automobile industry, with new energy vehicles (NEVs) driving the sector's growth.

The Lijia Intelligent Park in Chongqing Liangjiang New Area. (Photo/ Zhang Kunkun)

Data unveiled by the Chongqing Municipal Commission of Economy and Information Technology on August 21 highlights that even though the overall city's automobile production saw a 6.8% decline year-on-year, the output value of the automobile manufacturing industry rose by 3.3% year-on-year. 

The real standout was the NEV sector. Production of the NEVs grew by 9.6% year-on-year, with their output value soaring by 33.8%. As a result, NEVs contributed 85% to the city's automotive industry output value growth.

Chongqing's new energy vehicle sector flourished in the first half of 2023. (Photo/ Zheng Ran)

Chongqing stands as a crucial hub for the automobile sector, anchored by Changan Automobile, supported by over ten primary vehicle manufacturers, and bolstered by a vast network of a thousand ancillary businesses. Altogether, the city houses 21 vehicle manufacturers and over 1,000 sizable enterprises.

During the initial half of the year, companies like Changan Automobile, Deepal, Avita, and Changan Ford reported output growth surpassing the city's average. The production of NEVs exceeded the city's average by 6.4 percentage points, and their growth in output value outpaced the city's average by 4.6 percentage points.

Furthermore, projects such as STMicroelectronics power chips and Taiyo Motors have grounded themselves in Chongqing, resulting in a 153.5% boost in investment projects for intelligent connected NEV's parts and components.

Regarding infrastructure developments, the city is now home to over 150,000 charging piles, offering an extensive public charging infrastructure. Moreover, Chongqing is making strides in hydrogen fuel, with six hydrogen refueling stations already operational.

A hydrogen dispenser in Chongqing Liangjiang New Area. (Photo/ The Publicity Department of Chongqing Liangjiang New Area)

A global epicenter for automobile innovation

The city's ambition continues further. According to future development plans, by 2025, the production and sales of intelligent connected NEVs in Chongqing will exceed 1.5 million. 

This would account for more than 10% of the national figures, with a total output value for the automobile industry surpassing 500 billion yuan (68.8 billion U.S. dollars). By 2027, this figure is anticipated to reach one trillion yuan.

Chongqing has mapped out seven key development directions for the future, focusing on accelerating breakthroughs in intelligent networking and NEV technologies, fostering the growth of automotive software and AI, and building a robust safety system for intelligent connected NEVs.

This optimistic growth trajectory suggests Chongqing is well on its way to becoming a global epicenter for automobile innovation, particularly in the realm of NEVs.