iChongqing Title

China's Auto Parts and Components Create A Promising Market

By ZHAN CHEN|Nov 14,2023

Chongqing - This April, Chongqing announced an action plan for 2023-2027, focusing on developing intelligent connected vehicles (ICVs) and new energy vehicles (NEVs) in its western districts. 

This initiative targets eight western districts of Chongqing, including Jiangjin, Hechuan, Yongchuan, Dazu, Bishan, Tongliang, Tongnan, and Rongchang. They are gearing up to build a world-class, intelligent, connected new energy auto parts industry base, focusing on new energy, intelligent networking, and traditional systems. 

Chongqing aims to double these districts' ICVs and NEVs parts industries by 2027, aiming for 1,000 auto parts companies and an output value of 400 billion yuan (about USD 54.83 billion).

Li Daofei, an associate professor at Power Machinery & Vehicular Engineering Institute, Zhejiang University, highlighted the critical role of automotive electrification in China's transition from a significant automobile country to a leader in the automotive sector, at a forum recently held in Rongchang District, Chongqing.

A forum on enhancing the automotive industry in Chongqing's eight western districts was conducted on November 3 in Rongchang District, Chongqing. (Photo/Visual Chongqing)

Li pointed out that while China leads globally in car ownership with 302.1 million vehicles as of the end of 2022, its car density of 215 vehicles per 1,000 people lags behind the United States and Japan. This gap indicates significant potential for growth in China's automotive industry.

In the case of Chongqing, the city demonstrates its vehicle production expertise with a 70% localization rate for traditional vehicles and about 30% for new energy vehicles. The potential collaboration between parts and components creates a promising market for specialized firms in the automotive sector.

Li emphasized the importance of advancing critical technologies in the automotive sector, such as intelligent suspension systems, steering-by-wire systems, brake-by-wire systems, and intelligent cockpits. 

While acknowledging progress in high-performance batteries, high-efficiency motors, and electric controls, Li urged further improvement in vehicle comfort and user experience, addressing challenges such as noise, vibration, and motion sickness.

In a previous interview with Yang Zixuan, deputy director of the Chongqing Municipal Bureau of Investment Promotion and Facilitation, she highlighted a significant industrial opportunity for enterprises investing in Chongqing, facilitated by the city's robust market and substantial vehicle production capacity. 

Data shows that in the first half of the year, the western Chongqing area saw impressive economic development, with a contract value of 279.9 billion yuan and funds secured, amounting to 52.5 billion yuan.

Chongqing demonstrates its vehicle production expertise with a 70% localization rate for traditional vehicles and about 30% for new energy vehicles. The potential collaboration between parts and components creates a promising market for specialized firms in the automotive sector.


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