I The Current Development
The automobile industry is one of Guangzhou’s pillar industries. In 2009, the automobile output in the city exceeded one million units （reaching 1.1302 million units） for the first time, accounting for 8.2 percent of the national total. In the same year, the gross output value of the city’s auto companies above the designated size reached RMB 228.06 billion yuan, taking up 30.4 percent of that of all same-sized industrial companies. The percentage raised from 15.91 percent in 2008 to 18.24 percent in 2009. In a word, Guangzhou automobile industry takes the lead in China in terms of composite economic indicators.
The Automobile industry clusters have been emerged. By the end of 2009, as many as 430 auto and auto parts projects had been introduced in Guangzhou, with the total investment value of USD 7.508 billion. The automobile industry clusters were established, with Guangzhou Honda in the east, Dongfeng Nissan and Guangqi Hino in the north, and Guangzhou Toyota Motor Co.,Ltd.（hereinafter referred as GTMC）and Guangzhou Automobile self-developed brand in the south. Furthermore, six areas were approved as Guangzhou branches of the State Automobile and Auto Parts Export Base, including Huadu Distinct, Nansha Development Zone, Guangzhou Development Zone, Panyu District, Zengcheng City and Conghua City, thus forming three automobile industry clusters.
Guangzhou’s automobile industry turned out to be one of the best of China in export volume and it has gained a strong development momentum in import trade. In 2009, Guangzhou’s exports of auto and auto parts ranked No.2 among all state-level auto and auto parts export bases. Some 27,900 whole vehicles were exported, making up one-thirteenth of the total 370,700 automobiles exported by the country. There were 343 enterprises which actually exported autos and auto parts.
The year of 2009 saw the imports of auto and auto parts reaping USD 2.581 billion, up by 10.36 percent year on year. Seven enterprises imported over one million US dollars of auto and auto parts. Self-developed brand automobiles produced by Auto Engineering Research Institute of Guangzhou Automobile Industry Group met the Euro Ⅳ Exhaust Emission Standards. They were unveiled in the 2009 China (Guangzhou）International Automobile Exhibition and put into market before the 2010 Asian Games. Moreover, the electric vehicle developed by Guangzhou Langqing Electric Vehicle Co.,Ltd became the designated service vehicle of the 2008 Beijing Olympic Games.Purely electric-driven urban buses developed by Guangzhou Denway Bus Co.,Ltd were chosen as the designated vehicles for the Guangzhou Asian Games. Guangzhou Honda Technology Research and Development Center and Dongfeng Nissan Passenger Vehicle Technology Center were also established during this period of time. South China Tire & Rubber Co.,Ltd possesses the China well-known brand “Wanli Tier”. And Guangzhou Anda Bearing Co.,Ltd owns the independent intellectual property right over a national leading engine bearing China National Electric Apparatus Research Institute could offer testing evaluation and technical support covering more than 300 standards of six major categories for various auto and auto parts The institute also received recognition and authorization of over 20 domestic and foreign authoritative organizations or renowned auto enterprises like China Quality Certification Center, General Motor, Volkswagen and Nissan. Guangzhou Mechanical Engineering Research Institute established six project labs for projects like engine, cleaner and gear box inspections, providing preferential inspection services for automobile enterprises. The two institutes rank top among their domestic competitors in terms of technical capacity.
China （Guangzhou） International Automobile Exhibition has enhanced its brand reputation. The Seventh China （Guangzhou） International Automobile Exhibition of 2009 covered an area of 150,000 square meters, up by 20 percent as compared to the last session. Exhibitors, including nearly 70 whole vehicle manufacturers and more than 600 auto parts and accessories producers, displayed over 720 auto models, attracting nearly 500,000 visitors. The exhibition has grown into one of the three major auto shows in the country.
II Automobile Industry Bases
Guangzhou Automobile Industry Base, with a planned area of 135 square kilometers, comprises three main parts, namely, eastern, southern and northern automobile industry clusters. In September 2007, the city of Guangzhou was entitled of “State Auto and Auto Parts Export Base” by the Ministry of Commerce and the National Development and Reform Commission. In March 2008, Guangzhou Municipal Government identified Huadu District, Nansha Development District, Guangzhou Development District, Panyu District, Zengcheng County-level City and Conghua County-level City with “Guangzhou Sub-base of State Auto and Auto Parts Export Base”.
i Eastern Automobile Industry Cluster
The cluster is composed of the The Automobile Industry Base of Guangzhou Development District, Huangpu Automobile Industry Park and Zengcheng Automobile Industry Base. Priority is given in the cluster to the production of sedans and business vehicles sidelined with the development of supporting industries such as manufacturing and trade of auto parts and logistics. It is planned to build functional zones including the production zone of whole vehicles and auto parts, the zone of auto research and development, the zone of auto logistics, the zone of auto testing and the zone of auto exhibition.
（i） Automobile Industry Base of Guangzhou Development District
The base has been built with an investment of RMB 3.5 billion yuan. Nowadays it boasts of over 120 auto and auto parts enterprises as well as an auto parts supply chain serving three Japanrelated auto giants （Guangqi Honda, Dongfeng Nissan and GTMC）, General Motor, Ford, Volkwagan, Opel and Mazda from Europe and the US, as well as Hyundai from South Korea. In 2009, the base seized a gross value of auto industrial output of RMB 17.7 billion yuan. The value is expected to reach RMB 19 billion yuan in 2010.
（ii） Huangpu Automobile Industry Park
Covering a total area of five square kilometers, the park is home to Guangqi Honda No.1 Plant and Dongfeng Honda Engine Plant. In 2009, it reaped the gross value of auto industrial output of RMB 66.4 billion yuan. The number is estimated to reach RMB 70.2 billion yuan in 2010. An automobile industry base incorporating manufacturing, sales and distribution of various auto parts to serve for auto production and logistics is planned to be built here.
（iii） Zengcheng Automobile Industry Base
With a planned area of 22 square kilometers, the base owns more than 80 auto and auto parts enterprises. Guangqi Honda No.2 Plant possesses the annual production capacity of 120,000 sedans in its PhaseⅠproject and the number will reach 240,000 in the Phase Ⅱ project. Nearly 20 famous enterprises like Fuyao Group, Denso and Guangqi Honda （Zengcheng）, SP Logistics Center have settled down in the base. The base gained the gross value of auto industrial output of RMB 25.553 billion yuan in 2009. The number is estimated to reach RMB 28 billion yuan in 2010.
ii Southern Automobile Industry Cluster
The Southern Automobile Industry Cluster consists of Nansha Development Zone Automobile Industry Base and Panyu Automobile Industry Base. The former, headed by GTMC, gives priority to research, development and production of whole vehicles and auto parts, sidelined with related service industries like auto logistics and trade. The latter lays emphasis on supporting the development of self-developed brand vehicles and auto related products in the Auto Production Base of Guangzhou Automobile Group Co.,Ltd（hereinafter refers to GAGC）in Panyu.
（i） Nansha Development Zone Automobile Industry Base
The base is divided into Section A and B. Section A, led by GTMC projects, including GTMC complete vehicle and engine projects as well as Denso projects, will boast of the annual production capacity of 700,000 auto engines and 400,000 sedans in 2010. Section B is a highstandard auto parts industrial park. Enterprises who are to settle down inside the park may either purchase lands and build plants by their own, or make investments by renting the existing plants .The base achieved the gross value of auto industrial output of RMB 56.394 billion yuan in 2009. The number is estimated to reach RMB 70 billion yuan in 2010. Furthermore, the base sets up Nansha Automobile Dock of Guangzhou Port, the first dock especially for automobiles in the country, with an area of 420,000 square meters. The dock is equipped with a container yard of 370,000 square meters, 48 container loading terminals and a parking lot with the capacity of 3,600 vehicles, which has made it the largest marine auto logistics hub in Asia.
（ii） Panyu Automobile Industry Base
Covering 4.55 square kilometers, the base is made up of Auto Base of Panyu Modern Industrial Park and Wanzhou Auto Parts Industrial Park. Projects introduced in the area were worth of RMB 6.8 billion yuan in total, including GAGC’s auto research and development project in Panyu. In the project, the land for research and development occupies 0.3 square kilometers with the investment of RMB 3 billion yuan; the whole vehicle plant takes up 1.2 square kilometers, with the production capacity of 100,000 vehicles per year in the phase one project and 200,000 vehicles per year in the phase two project; the engine plant can turn out 100,000 units per year in the phase one period and 250,000 units per year in the phase two period; the first product of the project is a safe, eco-friendly and energy-saving sedan of medium and high grade, which will come on the market before the 2010 Guangzhou Asian Games. Wanzhou Auto Parts Industrial Park, located in southern Panyu, will accommodate internationally renowned enterprises like Guangzhou Koito Automotive Lamp Co.,Ltd and Guangzhou JFE Steel Sheet Company Ltd. The year of 2009 witnessed the total auto industrial gross value of roughly RMB 10 billion yuan in the park. The number is estimated to reach RMB 10.8 billion yuan in 2010.
iiiNorthern Automobile Industry Cluster
The Northern Automobile Industry Cluster comprises Huadu Automobile Industry Base （hereinafter referred as Huadu Auto City）and Conghua Vehicle and Auto Parts Industry Base. Huadu Auto City, led by Passenger Vehicle Company of Dongfeng Motor Co.,Ltd will top its priority to research, development and production of auto parts and related services. Consequently, the whole vehicle production zone, the auto parts industry park, the auto trade service zone, the auto logistics center, the auto institute, the auto research and development zone, the motorcycle and parts production base and the corresponding supporting facilities are mainly built here. Conghua Auto and Auto Parts Industry Base will build itself into a modernized industry base focused on research, development and manufacturing of business cars, trucks and parts by accelerating the construction of business vehicle projects with emphasis on the production of high-grade heavy truck, tractors, radial tires, car seats, air conditioners, interior accessories, stamping parts and car lamps.
（i） Huadu Automobile Industry Base
The base has introduced 116 auto-related projects from Fortune Global 500 Enterprises including Nissan, Alpha Automotive parts, Unipres, Hitachi Unisia Automotive and Calsonic Kansei. It achieved the gross value of auto industrial output of RMB 78.893 billion yuan in 2009 and the number is expected to hit RMB100 billion yuan in 2010. Purely electric-driven vehicles will be put on the market in 2011. By 2012, Passenger Vehicle Company of Dongfeng Motor Co.,Ltd will increase its production capacity to 600,000 vehicles and its output of engines will rise to 600,000 units from current 360,000 units.
（ii） Conghua Vehicle and Auto Parts Industry Base
The production project of Guangqi Hino and 23 auto parts manufacturers have set their feet here. The gross value of auto industrial output amounted to RMB 2.3 billion yuan in 2009 and the number is predicted to increase to RMB 4 billion yuan in 2010.
IIIDevelopment Priorities
i Development Objectives
By 2010, the annual auto output will reach 1.3 million units with the gross value of auto industrial output totaling RMB 300 billion yuan. By 2020, the annual auto output will achieve 3 million units and Guangzhou will be built into an innovation center for the automobile industry, a stage for international exchanges and cooperation, as well as an international auto manufacturing base and logistics center.
ii. Proposed Projects for Investment
（i） New Energy Auto Projects
Projects proposed mainly cover the fields of purely electric-driven cars, plug-in hybrid cars, ordinary hybrid cars, fuel cell electric cars, hydrogen engine cars, other new energy cars, design optimization technologies, mass production technologies and cost-control technologies for auto-specific engines and power control module, and design and development of special parts for hybrid cars and new fuel cars.
（ii） The Catalogue of Encouraged Auto Industries
The catalogue will be as follows: the design and the development of systems for whole vehicles, engines and key parts, the automatic transmission production, the auto light weight technology of automobiles, the production of eco-friendly new materials, the precision forging of key auto parts, multi-stage molding and casting, the development and manufacturing of detecting systems for automobile testing and maintenance, the development and manufacturing of diesel motors for vehicle use, the development and manufacturing of urban low-floor buses, the development and manufacturing of fully unitized passenger cars, the development and manufacturing of passenger car chassis and key parts, the development and manufacturing of chassis especially for high-performance vehicles, the design and manufacturing of vehicle body molds, the development and manufacturing of hi-tech automobile electronic products, and the high-performance anti-theft products.
Investment Promotion Focus:The introduction of projects from Japan, South Korea and West Europe should be strengthened. The investment promotion emphasis shall be laid on whole vehicle projects of Guangqi Honda, Dongfeng Nissan, GTMC, Guangqi Hino, Guangqi Changfeng and independent GAGC brands. New energy car-related projects shall be actively introduced and investment increase and production expansion of passenger car project, be supported. Guangzhou auto and auto parts enterprises shall be encouraged to launch joint ventures and cooperation and the auto parts industry chain shall be extended to meet whole vehicle manufacturers’demands. The investment promotion for supporting industries will mainly cover the fields of electronic parts like electronic chips, control system, driving system, information system, sensing system, operation system, design system, key technologies for automobile mold production and whole vehicle design, engine parts, chassis parts, vehicle body and accessories, general parts, parts meeting the demands for safety, environmental protection and energy conservation during the modern automobile production process, and the products related to automobile petrochemical.
Guangzhou City
