Chengdu is becoming an investment hub. On July 26, Chengdu held a major signing event for key projects in the third quarter of 2024. Twenty-six significant industrial projects signed agreements, totaling an investment of 53.05 billion yuan. Among them, the Shanghai Xizhong Automobile project stands out. This project focuses on manufacturing advanced electric motors for new energy commercial vehicles. It has an investment of 8 billion yuan and will be located in Longquanyi District. This marks a breakthrough for new energy commercial vehicles in Chengdu. Filling gaps and addressing needs, attracting investment is an effective way for local economies to strengthen industries. The questions of “how to attract” and “what to attract” reflect a city’s insight and vision. A key feature of Chengdu’s initiatives is precision. The city aims its efforts strategically to support industrial growth.
Strengthen the Supply Chain “Chain” refers to the ecosystem of the new energy commercial vehicle industry. The Chengdu Investment Promotion Bureau highlighted the importance of establishing a complete industrial chain for commercial vehicles and core components. This aims to address the city’s shortcomings in advanced motor research and manufacturing. This is a story of strong partnerships. Shanghai Xizhong Automobile Co., Ltd. focuses on intelligent, connected, and new energy commercial vehicles. The company masters three core technologies: drive module technology based on disc motors, efficient electric control, and complete vehicle system solutions. It has launched products such as new energy sanitation vehicles, concrete mixers, dump trucks, and mining trucks. Additionally, it has developed smart sanitation, smart public transport, and unmanned mining platforms, holding over 200 patents. From late 2022 to early 2023, Xizhong entered the Chengdu market through financing leases. It primarily engaged in financing leases for new energy commercial vehicles, distribution of Xizhong vehicles, and hub motors. The company collaborated with local businesses and supported the Chengdu Universiade. Another key player, Zhejiang Hub Power Technology Co., Ltd., holds honors such as national high-tech enterprise and national specialized small giant enterprise. Its flagship product, the axial flux motor, offers significant advantages in power density, efficiency, and size. Compared to traditional motors of the same power, it is 50% smaller and over 45% lighter. The proposed vehicle project will introduce new energy mining trucks, special vehicles, tractors, and buses. This will diversify Chengdu’s existing new energy commercial vehicle offerings and activate upstream and downstream enterprises. Currently, Chengdu lacks a leading motor manufacturer with strong technical capabilities. Hub Power’s establishment can fill this gap. By introducing products like electric drive for new energy vehicles and industrial energy-saving equipment, the company can seize opportunities for equipment upgrades, effectively promote energy conservation and emission reduction, and achieve green, low-carbon development. The launch of the vehicle project highlights the ongoing growth of Chengdu’s automotive industry. It reflects years of effort from the Chengdu and Longquanyi investment teams. The automotive industry is a key sector for Chengdu and a leading industry for Longquanyi. Local officials report that over 500 automotive parts companies operate in the district. More than 140 of these are above the designated size. They have started to build a parts supply system focused on the five major vehicle assemblies. In 2023, the district produced 824,000 vehicles, accounting for 98% of Chengdu’s total and 85% of Sichuan’s total. The output value of vehicles and parts grew by 6.2% and 11.2%, respectively. The dominant industries continue to strengthen. In the new energy vehicle sector, Longquanyi has nearly completed upgrades to its production platform for new energy passenger vehicles. The commercial vehicle product line has expanded further. In 2023, the district produced 80,000 new energy vehicles, doubling the output from 2022. At the beginning of 2023, the “Implementation Opinions on Promoting the Development of the New Energy Vehicle Industry in Chengdu” was released. It calls for deepening the industrial circle and chain actions to promote the transformation and high-quality development of the automotive industry. It outlines eight support policies, including rewards for new energy vehicle production and sales, as well as incentives to stabilize and strengthen the supply chain. This has rekindled interest in investment from many companies in the new energy vehicle supply chain, including Xizhong Automobile and Panhub Power. After understanding the investment intentions of companies, Longquanyi departments carefully reviewed available resources for commercial vehicle qualifications. They invited companies for on-site inspections to accurately assess their needs. After initial discussions on the Xizhong Automobile project, the investment team targeted Xizhong’s shareholder and deep partner, Panhub Power, to encourage them to establish an electric drive production base in Chengdu. After nearly two years of effort, the vehicle project successfully launched. In May of this year, Xizhong Automobile moved its headquarters from Shanghai’s Fengxian District to Longquanyi, Chengdu.
Precise measures. New energy commercial vehicles and special vehicles will thrive.
Chengdu has planned ahead and implemented multiple industry policies. The “Chengdu New Energy and Intelligent Connected Vehicle Industry Development Plan” was issued last June. This plan sets development goals for the new energy and intelligent connected vehicle industry based on industry scale, innovation capability, infrastructure, and resource factors. It aims for Chengdu’s supply chain and innovation chain to have strong international influence by 2030. The city is making progress. According to the Chengdu Economic and Information Bureau, in 2023, the automotive industry revenue exceeded 200 billion yuan. The production reached 843,000 vehicles, with new energy vehicle output growing by 105.4% year-on-year. Chengdu has built over 80,000 5G base stations and completed more than 8,000 smart multifunctional poles. It launched the province’s first automated driving commercial operation demonstration line, covering 480 kilometers. Chengdu was also selected as one of the first pilot cities for comprehensive electrification of public vehicles in China. The new energy and intelligent vehicle industry has been included in Sichuan’s strategic emerging industry cluster. In July, the policy intensified. To accelerate the development of hydrogen fuel cell commercial vehicles, nine departments, including the Chengdu Economic and Information Bureau, jointly issued the “Guidelines for Promoting the Development and Application of Hydrogen Fuel Cell Commercial Vehicles.” The guidelines detail support standards for expanding production and sales, supporting vehicle purchases, and encouraging trade-ins for fuel commercial vehicles. Rewards for production and sales of individual models can reach up to 50 million yuan. According to a relevant official in Longquanyi District, Sichuan is rich in mineral resources and clean energy. The application scenarios for new energy commercial and specialized vehicles, especially for new energy mining trucks, are abundant. Chengdu serves as a key strategic point for the western development initiative. The logistics corridors to the west and south are improving, offering broad market prospects for new energy commercial and specialized vehicles.