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NEV Revolution in China: Chengdu-Chongqing Region Transforms Supply Chain With Smart Tech

By HUXIN LUO|Mar 29,2026

The main welding line at the Seres factory processes automotive components. (Photo/Seres)

Chongqing - China’s New Energy Vehicle (NEV) output surpassed 16 million units in 2025, with the Chengdu-Chongqing region shifting from parts trading to an intelligent, software- and computing-driven ecosystem as automakers evolve from buyers to ecosystem organizers.

The 3rd Chengdu-Chongqing (Chongqing) Automotive Supply Chain Ecological Cooperation Conference recently kicked off in Chongqing. Representatives from leading automakers, core suppliers, and the government gathered to discuss new paths for regional industrial synergy.

For years, the car industries in Sichuan and Chongqing leveraged their geographical proximity to form a mature parts-matching system. However, participants reached a consensus that in the era of NEV, geographical closeness alone is insufficient to withstand global supply chain volatility; the industry must move toward deep ecological integration.

"Sichuan and Chongqing join forces to build a world-class NEV industrial cluster, which requires strengthening collaboration and co-building an industrial ecosystem," said Wang Han, Deputy Director of Chongqing Municipal Economy and Information Technology Commission.

He added that Chongqing and Chengdu have formed a "deeply intertwined" collaborative pattern, upgrading cooperation from simple transactions to the joint construction of a secure and reliable regional supply system.

Wen Bin, a senior official from Chengdu Municipal Bureau of Economy and Information Technology, confirmed this assessment, noting that institutional safeguards—such as strategic agreements—are transforming geographical proximity into deep strategic synergy.

In the race for intelligent NEVs, the role of automakers undergoes a fundamental shift. No single company can independently manage the entire evolution from underlying chips to high-level embodied AI. Consequently, traditional procurement models are restructured into ecosystem organization models.

Huang Zhongqiang, Chairman of the Society of Automotive Engineers of Chongqing and Chief Expert at Changan Automobile, stated that Changan accelerates its transformation into a "smart, low-carbon mobility technology company."

He emphasized that seizing leadership in the reshaped ecosystem is essential for traditional automakers; those failing to deeply participate in or lead these ecosystems risk falling behind in the rapid cycle of iteration.

Seres Group’s practices further validate this trend. Yin Xianzhi, Vice President of Seres Group, shared an ecosystem model centered on cross-sector collaboration. This approach integrates deeply with technology firms to drive rapid supply chain iteration and shorten R&D cycles.

By leveraging deep cross-sector cooperation with leading tech firms like Huawei, Seres has elevated its brand into China's luxury market, with its AITO M9 model consistently leading sales in the 500,000-yuan (approx. 72344 U.S. dollars) premium segment.

AI technology also reshapes "procurement orientation" within the supply chain. Participants noted that while demand for traditional mechanical parts is declining, software algorithms, computing power bases, and smart driving scenarios have become core requirements.

Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), believed that while Chinese NEVs maintain significant potential globally, this advantage must be built on a foundation of digitalization and intelligence.

This shift is evident in procurement. Mao Qionglin, General Manager of Changan Auto’s Procurement Center, and Li Xiumei, Head of Procurement for FAW-Volkswagen Jetta, stated that procurement focus has shifted entirely toward digital and low-carbon solutions. This transition challenges not only the technical capabilities of suppliers but also the response speed of the entire supply chain.

Experts concluded that efficient digital synergy and precise AI empowerment accelerate the digital transformation of the Chengdu-Chongqing automotive industry, ensuring that industrial chain initiatives are implemented with high efficiency.

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