The automotive industry has the longest supply chain, the widest coverage, and the strongest driving force in manufacturing. It reflects a country’s manufacturing strength. On November 14, China’s annual production of new energy vehicles surpassed 10 million for the first time. The rise of this sector relies on the “hard power” of smart manufacturing. Smart manufacturing factories have become essential for car companies to launch products and capture market share. To ensure mass production of the Zun Jie, Jiangqi Group invested heavily to create a world-class smart factory in Feixi. Changan Automobile partnered with Huawei and China Unicom to build a digital factory, focusing on the high-end quality of the Avita 07. Xiaomi’s automotive factory hosted foreign visitors for several days. Companies like Seres and BYD are also expanding their smart factory layouts through acquisitions and expansions.
Analysts from the Automotive Research Institute highlight that strong manufacturing capabilities help China’s new energy vehicle industry stand out globally. These capabilities form the foundation for automakers to succeed in fierce market competition. The automotive industry leads smart manufacturing. A new wave of technological revolution emerges worldwide. Innovations in the internet, big data, and artificial intelligence accelerate and integrate across industries. New industries, models, and business formats are developing. The automotive sector faces unprecedented changes. It reshapes its innovation chain, supply chain, and value chain. Fu Yuwu, honorary president of the China Society of Automotive Engineers and chairman of the Huachi Foundation, stated that the automotive industry, with its long supply chain and high integration, leads technological and industrial revolutions. It is transforming towards green, low-carbon, smart connectivity, and intelligent manufacturing. The focus of the automotive industry has shifted through the 1.0 to 4.0 eras. In the 1.0 era, the industry focused on structural design. The 2.0 era emphasized comfort and power. The 3.0 era prioritized modular production to enhance safety and economy. Now, the 4.0 era concentrates on green, low-carbon, and smart connectivity, with a greater emphasis on digital and intelligent manufacturing. Fu Yuwu pointed out that digital transformation supports the upgrade of intelligent manufacturing. This transformation enables low-cost, high-efficiency, and customized development across product design, manufacturing, and services. For automotive manufacturing, this means a comprehensive leap in advanced manufacturing technologies, intelligent equipment, digital empowerment, and industrial software. In 2023, global sales of new energy vehicles reached a record 14.653 million units, a 35.4% increase year-on-year. Market penetration hit about 17%. In that same year, China’s production and sales of new energy vehicles accounted for over 60% of the global total, maintaining the top position for nine consecutive years. As global new energy vehicles enter a rapid development phase, China’s new energy vehicle industry leads the way. At the 2024 ESG Global Leaders Conference, Changan Automobile President Wang Jun stated, “China’s new energy vehicle industry has become a key development direction for the global automotive industry.” This success stems from the support of “smart manufacturing.” New-generation information technology and green low-carbon technology deeply integrate with automotive companies, reshaping the intelligent manufacturing system. This integration forms the foundation of strategic planning for car manufacturers. As the new energy vehicle industry thrives, competition intensifies. Car companies express a strong determination to capture the market through their products, whether they talk about “sharpening one sword three times” or “sharpening three swords in one year.” Each popular new energy model relies on intelligent manufacturing plants for support. This has become a core element of their strategic layout. On November 26, the ZunJie S800 debuted at the Huawei Mate brand gala. This model marks the first vehicle from the high-end brand “ZunJie,” created jointly by Jianghuai Automobile Group and Huawei. The ultra-luxury intelligent electric sedan is hailed as a significant achievement of Huawei’s HarmonyOS. The ultra-luxury sedan demands strict quality standards, embodying meticulous craftsmanship and exceptional performance. Industry experts see the ZunJie S800 as a vivid example of the transformation of China’s automotive industry and “Made in China.” The world-class benchmark smart factory supports the mass production of the ZunJie. It combines digital R&D, green low-carbon manufacturing, and brand experience services. Earlier, Changan Automobile officially launched its smart factory in cooperation with Unicom and Huawei on October 21. This factory represents Changan’s largest investment, highest level of intelligence, and most advanced manufacturing equipment for new energy vehicles. It features extreme flexibility, automation, full-scene digital twin technology, 5G connectivity, top-tier craftsmanship, and green low-carbon highlights, making it a super factory for flexible manufacturing powered by 5G and AI.
In October, Avita delivered 10,056 vehicles. This marks a 158.6% increase year-on-year. It achieved its best sales performance in three years. Changan Automobile credits the launch of the Avita 07 and extended-range models for the significant sales boost. The first model off the line from Changan’s smart factory is the Avita 07. The performance and brand of the Avita 07 received strong guarantees. In the Chongqing Seres super factory, over 1,000 smart devices and more than 3,000 robots work in coordination. Key processes are 100% automated. This smart production allows the factory to roll out two new energy vehicles per minute. NIO founder Li Bin once said, “Porsche’s factory cannot compare to Jianghuai’s factory.” This statement went viral. The revolution in smart manufacturing has quietly swept through the automotive industry. New forces in the electric vehicle sector, like NIO, Xpeng, and Li Auto, have already taken the lead in smart manufacturing. For example, Li Auto’s Beijing green smart manufacturing base originated from an old factory of Beijing Hyundai. The new stamping, welding, painting, and assembly workshops use advanced, eco-friendly, and efficient production processes. They focus on smart manufacturing based on digital twin technology. This base is the second modern smart manufacturing facility for Li Auto, following the Changzhou base. GAC Aion’s smart eco-factory has been selected as a “lighthouse factory” by the World Economic Forum in Davos. It is the only new energy vehicle lighthouse factory globally. The factory produces models for the Haobo and Aion brands. The entire new energy industry chain is undergoing a transformation. Official data shows that China has nurtured 421 national-level smart manufacturing demonstration factories and built over 10,000 provincial-level digital workshops and smart factories. As new technologies, products, and marketing strategies dominate the automotive industry’s “traffic” codes, we must not overlook the manufacturing essence and commitment of the automotive industry. These smart factories represent the global trend and future direction of new energy vehicle manufacturing.
Geely Auto understands that the industry faces intense competition. Outdated capacity will be eliminated. In contrast, some leading car companies prepare for stable production and strategic implementation. For example, Seres is acquiring ownership of a super factory. On the evening of November 26, Seres announced plans to buy 100% of Longsheng New Energy from Chongqing Industrial Mother Fund, Liangjiang Investment Group, and Liangjiang Industrial Group. The transaction price is 816.3952 million yuan. Longsheng New Energy serves as the main entity for the infrastructure project in the Liangjiang New Area’s Longxing New City smart connected electric vehicle industrial park. This project company focuses on supporting electric vehicle production. Its main assets include land, buildings, infrastructure, and related facilities necessary for manufacturing electric vehicles. Before this transaction, Seres rented the super factory from Longsheng New Energy to produce the Wenjie series of smart electric vehicles. If the transaction completes, Longsheng New Energy will become a wholly-owned subsidiary of Seres, granting Seres ownership of the super factory. AITO is the core brand of Seres Automotive. It has long dominated Seres’s sales. So far, AITO has launched three models: the M5, M7, and M9. In early 2024, the AITO M9 will start production at the super factory. BYD, the leader in new energy vehicle sales, actively expands its smart manufacturing footprint. On November 20, BYD announced increased investment in Shenzhen. It signed a contract with the Shenzhen-Shanwei Special Cooperation Zone to build the fourth phase of the BYD Automotive Industrial Park. The Shenzhen-Shanwei area has developed a “one main, three auxiliary” industrial layout. It focuses on the new energy vehicle industry, supported by new energy storage, new materials, and smart manufacturing equipment. Nearly 30 chain-leading companies have already set up operations there. Smart manufacturing is the next competitive edge for high-quality development in the automotive industry. This trend is especially evident in the power battery supply chain, a core component of new energy vehicles. As the power battery industry enters the TWh era, large-scale battery applications demand higher production standards. Companies like CATL, BYD, Honeycomb Energy, and Guoxuan High-Tech view smart manufacturing as the key to breakthrough.