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News >China

Chengdu rises as an auto manufacturing highland

2011-07-26 09:07

Go west and go to Chengdu!

Many world renowned auto manufacturers have moved to Chengdu in recent years. In 2011, we marked the history of Chengdu as the center of the automobile industry with a special event.

A cornerstone laying ceremony was held on July 16 in Chengdu Economic Development Zone to commence the EA211 engine and third-stage car production capacity expansion project at the Chengdu base of FAW-Volkswagen Automobile, with a total investment of 10 billion yuan.

This development of Chengdu’s automobile industry signifies that the city is fast becoming a high-end auto manufacturing center.

Chengdu has developed itself as a new hub for China’s modern automobile industry, from “the third city of private cars”, to “fourth city of car exhibitions” and to “second city of racing cars”. It is cultivating itself into an international car base that is “the largest in west China, first class in the country, and world famous.”

Chengdu will not only attract auto consumption but also manufacturing. The auto manufacturing industry has made progressive developments and has left its mark in the Chinese auto industry domain. It has set out from a comprehensive functional auto industry base to a level-1 system of national auto industrial concentration framework. It will eventually become an internationally known, high-end auto maker.

Development history:

On May 31, the International Automobile Smart Construction Technology Park, with a 150 million euro investment, was officially founded in Chengdu Economic Development Zone.

On May 26, the passenger car production base of Mingjun Group, with an investment of 2.6 billion yuan, settled in Chengdu Economic Development Zone.

On May 8, Dayun Group (Chengdu) commercial vehicle production base, with an investment of 2.1 billion yuan, officially started construction in Chengdu Economic Development Zone.

On February 25, Volvo set up its first China-based production plant in Chengdu. The first localized car since it was merged by Geely will also be made in the Chengdu plant.

On February 18, Sichuan Auto Industry Group officially signed an agreement to invest an extra 500 million yuan to construct the new energy R&D and manufacturing base.

In the morning of January 28, China Ordnance Equipment Group Corporation (CSGC) and Chengdu Economic Development Zone signed an agreement for CSGC Chengdu auto parts industrial park. The project has a total investment of 5 billion yuan. It is expected to start construction within the year, with a construction cycle of two to three years. When completed, the project will realize more than 5 billion yuan in annual sales revenue.

In the afternoon, CSGC signed a strategic cooperation agreement with Chengdu Economic Development Zone to invest 10 billion yuan for a package of projects of auto parts R&D center and headquarters base, and auto trade service center. When completed, it will have annual sales of 20 billion yuan.

When Chengdu FAW was constructed five years ago, people might have only seen “sparks of fire” in the Chengdu auto industry. Nowadays, the industry has set the prairie ablaze. In the 161-square-kilometer auto industrial comprehensive functional zone, with Chengdu Economic Development Zone as the core, three industrial clusters of auto manufacturing worth 100 billion yuan, auxiliary equipment and auto trade have emerged.

Breaking the ice, progressing and striding forward, the Chengdu auto industry has expanded at a faster rate than any of its competitors in the country.

As mapped out by the preliminary development objectives, the Chengdu international motor town has brighter prospects.

In five to 10 years, the motor town will basically develop into a competitive core of auto industry in the region and a new highland of Chinese auto industry, with well structured and comprehensive functions. It will consolidate its position as a second-tier auto industrial cluster in the country.

In 20 years, the motor town will develop into a first class production base in the country, and enter the first-tier system in the national auto industrial cluster.

In 30 to 50 years, the motor town will enter the internationally advanced rank, and facilitate cultivating Chengdu into a world class modern garden city.

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