Automotive industry in SW China

The region already has a sound foothold in the nation’s vehicle production with 10 percent of its output deriving from Sichuan and Chongqing. This equates to 2.5 million units manufactured[1]. In 2019, car ownership across major territories in Southwest China exceeded 31.08 million units, becoming one of the nation’s fastest growing markets[2]. Amongst them, Chengdu and Chongqing ranked top two and three with 5.19 and 4.63 million units respectively[3]. 

The region has attracted investment from auto manufacturing and auto part brands like Geely and Changan that have expanded into Chongqing. Chengdu also continues to see more overseas brands and joint venture companies. For example, FAW-VW and Volvo have set up bases for vehicle production, development of key parts and components, auto parts manufacturing, sales and aftermarket services.

[1] “Chengdu and Chongqing together work towards becoming world-leading cities in the automotive industry”, December 2020, CQNEWS.NET, https://bit.ly/2LEv5LH. Retrieved January 2021.

[2] “Statistical Communique of the Yunnan Province on the 2019 National Economic and Social Development”, April 2020, China Economic Net.

[3] "National car ownership reached 260 million units in 2019. Among it, more than 30 cities' registered car exceeded 2 million units”, January 2020, askci corporation, https://bit.ly/2XSWlsi. Retrieved January 2021.

The Chengdu-Chongqing economic rim, according to a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee on October 16, 2020, will represent Western China's new growth engine. As a significant part of the new development pattern, the new economic rim will bring high-quality growth, widen the market and stabilize the production and supply chains.  

Bestowed with a favorable location at the intersections of the Belt & Road and the Yangtze River Economic Belt, the two cities also have strong manufacturing backgrounds, covering the automotive and electronic machinery industries, telecommunication equipment manufacturing and service sector as well as tourism and leisure. With an aggregate population of 120 million people and GDP of nearly seven trillion yuan ($1.04 trillion) in 2019, the Chengdu-Chongqing region is following developments in other major Chinese city clusters.

Leveraging the area’s industrial diversity in the auto supply chain, the alliance between the cities aims to accelerate the development of Southwest China’s automotive industry even further.

The show debuted the Chengdu-Chongqing Dual-city Economic Rim zone in the 2021 edition to highlight the latest regional development strategy for the automotive value chain. Over 20 exhibiting pavilions from provincial Sichuan cities and renowned brands with the likes of China Shipbuilding Industry Corporation (CSIC) and Wanxiang Qianchao from Chongqing will be exhibiting. 

Furthermore, the Chengdu-Chongqing Economic Rim also places a key emphasis on the development of new energy and connected vehicles. The New Energy & Connected Mobility zone will bring a wide range of associated products, equipment and technologies. These include batteries, motor and electric control systems, charging infrastructure, repair and maintenance equipment, as well as connectivity and autonomous driving solutions.

• One of top 10 exhibition brands in Sichuan province, with a wide backing of local authorities and industry associations. Renowned fair's organisers channel both provincial and international resources to the show. 

• The robust domestic demands and rapid automotive market development are further fueled by the national blueprint of Chengdu-Chongqing Dual-city Economic Rim. 

• Comprehensive product coverage across the automotive supply chain addresses the local market needs and the future trends. 

• The fair is not only an efficient marketplace, the carefully designed fringe programme held before and during the show provides a fast lane for understanding, building ties and exploring new opportunity in this promising market .

• High quality of visitors from the west area and beyond, with 62.9% are at management level, many of them are distributors and workshop operators.