Xiangfan High-tech Zone Strengthens the Automobile Industry Chain and Builds a New Automobile City in China

Xiangfan Hi-Tech Zone has launched five key initiatives, including fundraising and land preparation, for the Dongfeng A08 project. This major project involves a total investment of 1.26 billion yuan and focuses on producing European-style light passenger vehicles with an annual output of 60,000 units. Once fully operational, the project is expected to generate an annual output value of 7.2 billion yuan, significantly boosting the local economy. In addition to Dongfeng, six large-scale projects are currently in advanced stages of planning. These include car collision avoidance systems and Jiangshan heavy-duty high-end special vehicles, with investments totaling over 10 billion yuan. The ambitious plans reflect the zone's growing importance in the automotive sector. Liu Jinyuan, director of the management committee, emphasized that the arrival of these large projects will not only attract more auto parts companies but also help expand the industry’s scale. This will further strengthen the automotive supply chain and enhance the region’s competitiveness. Over the past decade, Xiangfan Hi-Tech Zone has developed a comprehensive automotive industrial chain, led by the Dongfeng Motor Company's Xiangfan base. The area now has a production capacity of 150,000 light commercial vehicles, 100,000 mid- to high-end cars, and 400,000 engines. It produces well-known models such as the Dongfeng Light Truck, Tianzhu, Bluebird sedan, and the Dongfeng Touring series, along with Cummins diesel engines and Beverly motors. The zone has attracted global automotive giants like Cummins (USA), Dana (USA), and Peugeot (France). Currently, it serves as a key base for engine, axle, and seat recliner production, and is one of the seven national-level characteristic industrial bases recognized by the Ministry of Science and Technology. With over 180 auto parts companies operating in the area, the industry covers a wide range of products, including bearings, electrical components, and instrumentation. Together with vehicle manufacturing and core components, this forms a complete and robust industrial system. Moreover, the automotive industry has spurred growth in related service sectors. There are 39 auto dealers in the area, offering more than 70 brands and models, such as Nissan and Citroen. Major logistics companies like Dongfeng Logistics, Industry and Trade, Fengshen, Shuguan, and Jintong play a vital role, contributing an annual output value exceeding 500 million yuan. According to the "Eleventh Five-Year Plan," by 2010, Xiangfan Hi-Tech Zone aims to produce 500,000 complete vehicles, 1 million engines, and achieve a total output value of 100 billion yuan in the auto industry. This vision will transform the region into a modern Chinese auto city, ready to make its mark on the global stage.

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