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Urgency in Rebuilding the Auto Industry Supply Chain Ecology丨Insights

By RAN ZHENG|Mar 20,2024

Chongqing—The 2024 China government work report charts a new course for the automotive industry, particularly in new energy vehicles (NEVs), to foster fresh, high-quality, productive forces. According to the recently held 35th annual meeting at the Chongqing International Expo Center, Chongqing outlined three strategic directions for the continued high-quality development of the automotive sector.

Changan Automobile revealed the official images of its latest addition to the UNI series, the UNI-Z. (Photo/ Changan Automobile)

Electrification, intelligentization, and network connectivity

A Chongqing Society of Automotive Engineers spokesperson stressed the importance of a unified strategy in addressing the challenges of electrification, intelligentization, and network connectivity in the automotive sector. 

"The development of the automotive supply chain is undergoing profound changes," the spokesperson noted, underscoring the urgency in rebuilding the industry's supply chain ecology with a focus on green development and resilience.

A notable aspect of the meeting was the introduction of the Intelligent Electric Vehicle Industry Chain Innovation and Cooperation Alliance, a pivotal move toward establishing a safer and more robust automotive ecosystem. This initiative seeks to tackle the complexities and inherent risks of the extensive and globally interconnected automobile industry chain.

The alliance's inception saw the involvement of 17 initiating units, including leading car manufacturers like Changan Automobile, Seres, and SAIC Hongyan, as well as key research institutions such as China Automotive, China Merchants Testing Vehicle Technology Research Institute Co., Ltd, and Chongqing University. 

This collaborative endeavor aims to consolidate industry resources, fostering an innovative platform for intelligent electric vehicles that transcends sectors, regions, and borders.

Crossover integration is pivotal for the auto industry

Experts and scholars at the meeting agreed that expediting crossover integration is pivotal for advancing the high-quality development of the auto industry. This entails combining advanced manufacturing with modern services and bolstering the aggregation of industrial and talent chains to reinforce the supply and innovation chains.

Chongqing has actively pursued policies to foster an intelligent, connected NEV industry cluster. These policies support the development of productive services and encourage third-party organizations to enhance their capabilities in emerging fields such as chip development, advanced materials, and hydrogen energy.

Furthermore, a notable aspect of the regional collaboration is the partnership between Chengdu and Chongqing that promotes the automobile industry's innovative development. Sichuan Jian'an Industry Co., Ltd., based in Ya'an City, Sichuan Province, has been a testament to this cooperation.

 "We worked tirelessly over the Spring Festival to ensure Chongqing's NEV production lines remained operational," said Huang Chaoyong, the company's general manager.

Changan Automobile's reliance on components from Sichuan-based suppliers further illustrates the deep interconnectivity between the Sichuan and Chongqing automotive sectors. This synergy boosted local jobs and notably increased national car production, with the regions producing over 3.29 million vehicles in 2023, making up 10.9% of the country's total.


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