Chongqing - Chongqing's automotive industry grew significantly in the first half of 2024, with vehicle production reaching 1.214 million units, the highest in China. New energy vehicle (NEV) production surged to 391,000 units, a 150% year-on-year increase, marking the fastest growth rate among the top ten regions in China, according to the Chongqing Municipal Commission of Economy and Information Technology.

In recent years, Chongqing's automotive sector has undergone a significant transformation. Once stigmatized as low-end, the image of "Chongqing-made" vehicles has dramatically improved with the launch of mid-to-high-end brands such as Changan Deepal, Avatr, and Seres.

The success of the AITO M9, in particular, has been a game-changer. It consistently tops the sales charts for luxury models priced over RMB 500,000 (USD 70,200). This achievement has disrupted the dominance of foreign automakers in China's luxury car market, significantly boosting consumer confidence in Chongqing-made vehicles.

The intelligent production site at SERES Auto Super Factory. (Photo/Wang Quanchao)

Chongqing's automotive industry's rapid growth mirrors China's surge in NEVs. Since 2020, NEV production in China has soared from 1.456 million to 9.443 million units by 2023, a 6.5-fold increase. China has led global NEV production and sales for nine years, reflecting strong market demand and growth potential.

In July 2023, the domestic retail penetration rate of NEVs surpassed 50% for the first time, reaching 51.1%. This milestone indicates that NEVs have taken a dominant position in the market and are entering a new phase of development.

As early as 2009, Chongqing ranked among the top provinces and cities in vehicle production. By 2014, Chongqing’s output had surged to 2.6 million units, earning it the top position nationwide, and it continued to exceed 3 million units annually for the next three years. 

These achievements were driven by Chongqing's ability to seize rapid development opportunities in fuel vehicles and joint venture brands while leveraging its advantages in the equipment manufacturing sector.

To address future challenges and opportunities, Chongqing is accelerating its transition to NEVs. The transformation of Chongqing’s automotive industry has moved beyond optimizing the "whole vehicle + components" manufacturing system to building a comprehensive industrial ecosystem.

According to an official from the Chongqing Municipal Commission of Economy and Information Technology, the traditional automotive industry is evolving from a linear to an ecosystem-based model, focusing on intelligent connected NEVs. This approach integrates vehicle-component collaboration, hardware-software synergy, scenario-driven development, digital empowerment, innovation, and brand enhancement to elevate brands, products, and the industry chain.

For example, automakers are leading collaborations with component suppliers, driving advancements in key NEV technologies, and fostering industrial growth. Projects such as power chips and LiDAR address critical gaps, with the entire ecosystem covering three major systems, 12 assemblies, and 56 components achieving comprehensive development.

Chongqing is expanding its ultra-fast charging network, targeting 2,040 stations and 4,000 piles by 2025. The city is also developing a national demonstration city for battery swapping and a pilot zone for public vehicle electrification. Pilot projects for intelligent connected vehicle access, road testing, and the integration of vehicles, infrastructure, and cloud platforms are also underway.