[Industry Transformation] Guangdong builds world class auto manufacturing base
2012-May-9 Source: Newsgd.com
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Guangdong Party Secretary Wang Yang announced last year that the province will focus on advanced manufacturing to promote an independent, world-class auto manufacturing base.

Wang's announcement came during a tour of the Volkswagen Group in Germany. Wang added that the new auto base will be located in Guangzhou, Shenzhen and Foshan cities for developing key auto parts and extending the auto industrial chain.

Three European auto giants set their plants in Guangdong

Three European auto companies including FAW-Volkswagen, Chang'an-PSA and Daimler built their plants in Guangdong in 2011 and are set to be in full operation by 2013.

The FAW-Volkswagen Foshan project, an 8 billion RMB investment, aims at an annual production capacity of 300,000 high-end vehicles. "The most successful and the newest type of FAW-Volkswagen will first be produced in the Foshan plant," said Ni Kaiming, CEO of Volkswagen Group (China).

The Chang'an-PSA Shenzhen plant, established by China's Chang'an Automobile Group and French automaker PSA Peugeot Citroen (PSA), will be China's largest auto-making joint venture. Covering 1.3 square kilometers in Guanlan Subdistrict, Bao'an District, the plant will initially have an annual production capacity of 100,000 passenger vehicles and 100,000 commercial vehicles as well as 200,000 engines.

The initial cost is 8.4 billion RMB (1.3 billion USD) and another 500 million RMB will be spent on a research and development center. It will produce the Citroen DS series models.

The Shenzhen BYD Daimler New Technology Company, was established by the Daimler Group and BYD Company Limited, and will combine Daimler's advantage in structure and safety of electric cars with BYD's battery technology and electric drive system to build brand new electric cars in China.

Guangdong independent brand vehicles to be increased

The Dongfeng Motor Huadu plant expanded their annual production capacity to 600,000 passenger vehicles with an output exceeding 100 billion RMB in 2011 as 6 billion RMB was injected into facilities projects. The Huadu plant will be the largest Nissan production base in the world. Guangzhou Honda Automobile invested 930 million RMB in its Zengcheng plant expansion, with annual production capacity expected to double.

Building independent brand vehicles

In 2010, the Guangzhou Automobile Group (GAC)'s first native brand vehicle "Chuan Qi" rolled off the assembly line. Guangzhou Honda Automobile rolled off its first joint venture independent brand "Concept" in March 2010 and is expected to be followed by Dongfeng Peugeot Citroen, Guangzhou Automobile Group and Guangzhou Honda Automobile.

New energy vehicle projects help Guangdong build a world-class electric cars base.

In 2010, 13 of Guangdong's top industry projects were in new energy automobiles, and rely on enterprises such as the BYD and Guangzhou Automobile Group. In 2011, Guangdong officials said the government will inject 10 billion RMB into expanding the electric auto industry.

In Shenzhen, BYD officials announced that they will cooperate with Daimler to produce a new generation electric cars in China. In Foshan, Beiqi Foton Motor, which ranked first in national new energy car sales, set their coach projects in Nanhai.

In Zhongshan, the government plans to invest 40 billion RMB in building South China's largest lithium battery and new energy auto production base.

In Guangzhou, Guangqi Toyota Automobile Camry hybrid cars had a good market performance and the Guangqi group said it will increase efforts in developing environmental, energy-saving and advanced hybrid four-wheel drive vehicles.

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The auto industry is Guangzhou's first pillar industry. In 2010, Guangzhou had an auto production capacity of 1.36 million vehicles. In 2011, from January to October, Guangzhou produced 1.2 million vehicles, a year-on-year increase of 9.07 percent and 3.2 percent above the national average level. By 2015, Guangzhou expects to reach an annual production capacity of 4.5 million vehicles and 150,000 new energy vehicles as well as building two large vehicles manufacturing enterprises with an output valued over one trillion RMB.

(by Mo Qun)

Editor: Miranda
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