2024-04-24

Source: Jilin Daily

The automobile industry, with its large scale, long chain and strong driving force, is one of the powerful drivers for promoting the sustained growth of the regional economy. As the main direction for transformation and upgrading of the automobile industry, the new energy vehicle sector is flourishing.

According to the "one pillar, six doubles" high-quality development strategy, the province has launched the upgrade project of the automobile industry cluster, focused on the development direction of electrification, networking and intelligence, and accelerated the comprehensive improvement of vehicles, auto parts and aftermarket. The new energy vehicle industry chain is gradually being built, and traditional auto parts manufacturers are also facing corresponding transformation.

Development of production entities and growth of vehicle sales

Transformation should be based on the economic development trend and market performance.

In 2023, FAW Group's production and sales reached 1.56 million and 1.57 million units in the province, increasing 16.7 percent and 17.6 percent year on year, respectively. Among them, the production and sales of new energy vehicles surged 43.2 percent and 62.7 percent year on year, respectively.

Last year, FAW's production of new energy vehicles in the province significantly increased, higher than the national average level. The market share of its new energy vehicle models also recorded stellar growth.

On January 26, the Audi FAW New Energy Vehicle project officially started pre-mass production. With a total investment of 35.8 billion yuan, the project is Audi's first pure electric vehicle production base in China based on the PPE platform. It will become FAW's sixth vehicle production base in Changchun, with a designed annual production capacity of 150,000 vehicles.

The growth of production entities and sales volume has brought about a larger scale and higher added value demand for new energy vehicle parts, providing new opportunities for local auto parts manufacturers to reach a new level.

The 14th Five-Year Plan for Economic and Social Development of Jilin Province and Long-Range Objectives through the Year 2035 proposes that by 2025, the local supporting rate of auto parts in the province will have reached 70 percent, and the scale of the automobile industry will have exceeded 1 trillion yuan.

In the future, the new energy vehicle industry chain will play a more important role, because this means greater development potential, more diverse industrial ecology, and stronger anti-risk ability.

"Improving the supporting level of the new energy vehicle industry chain in the province can accelerate the local division of labor and effective collaboration, solve the problem of spatiotemporal mismatch, shorten the manufacturing cycle, reduce logistics, inventory and management costs, and help the enhancement of enterprise competitiveness." Gao Yun, director of the Economics Teaching and Research Department of the Party School of the Provincial Party Committee, believes that the development and extension of the new energy vehicle industry chain in the province will generate new economic growth drivers, bring in an influx of people and enterprises, increase fiscal taxation and resident income, promote employment, and boost the regional economy.

Breakthroughs in core technologies in key fields

Jilin province has laid a solid foundation for producing new energy vehicles, but achieving breakthroughs in core technologies in key fields is the only way to make it a leader in this new arena.

Since the beginning of this year, FAW Group has translated its innovation achievements into practical applications at an unprecedented speed.

The Hongqi EH7 model, equipped with an industry-leading 22500 RPM motor and low-temperature battery cell, came to the market. Its 0-60 km/h acceleration time is as fast as 1.8 seconds, and 80-120 km/h acceleration time is as fast as 2.3 seconds. The winter endurance retention rate reaches 70 percent.

The Hongqi 4GC20TD hybrid engine and HDU28 hybrid system, which won the title of 2023 "China Heart" Top 10 Engines and Hybrid Systems, will be applied to future new products of Hongqi.

The first prototype A of FAW's torque vector dual motor M190/M220 successfully rolled off the production line, marking a new milestone in the research and development capability of Hongqi's electric motors.

Nowadays, Jilin is at the forefront of making breakthroughs in core technologies in key fields in China's automobile industry. Over the past three years, FAW has achieved breakthroughs in 451 core technologies such as efficient high-speed electric drive and intelligent wire-controlled chassis. In 2022, the company ranked first in the number of patent releases and authorizations in the automobile industry.

Changchun Jetty Automotive Technology, as a unicorn company, independently developed a high-speed data transmission system for vehicles and started mass production. To date, the company has obtained over 150 international patents and nearly 1,000 domestic patents.

Changchun Bochao Auto Parts won the second prize of the National Award for Science and Technology Progress with its polymer-based fiber composite materials project, making it the first private auto parts company in Changchun city to receive this award.

Changchun Chinaust Automobile Parts independently developed battery quick change technology and launched a new structure battery quick change connector. The patented technology has reached the highest international standard and has been used in multiple pure electric vehicle models.

Technological innovation is the key support for industrial innovation. Liang Guiyou, general manager assistant of FAW Group and secretary of the Party Committee of its Research and Development Institute, said that independent technology and innovative products are the only standard for measuring the implementation of achievements."

Full-chain layout and cluster development

On February 2, the first phase of the FAW FinDreams Power Battery project was officially put into operation. Since then, the power battery of new energy vehicles has been "made in Jilin", filling a crucial link in the industrial chain.

In Changchun International Auto City, the FAW Hongqi Fanrong factory, the Audi FAW New Energy Vehicle project and the FAW FinDreams Power Battery project have formed a "Golden Triangle" of the new energy vehicle industry, attracting more enterprises in the supply chain.

In January 2023, Changchun Automobile Economic and Technological Development Zone signed 64 projects worth nearly 44.2 billion yuan. Among them, 12 projects with a total investment of 5.965 billion yuan have been implemented, covering such areas as new energy, auto parts, high-end equipment manufacturing and the modern service sector.

In June 2023, the Audi FAW New Energy Vehicle Supporting Industrial Park and Audi PPE supporting projects started construction in Changchun. The 23 projects worth 44.5 billion yuan will provide strong support for the province to build a trillion-level automobile and auto parts industry.

Changchun has a strong foundation in the automobile industry, with multinational auto parts enterprises such as Continental AG and Vitesco Technologies, as well as more than 1,100 local supporting firms including Faway, Fawer, etc. Among them, there are 387 large-scale enterprises, with a supporting output value of nearly 160 billion yuan. These resources are laying a new foundation for building a new energy vehicle industry chain.

All links of the industrial chain has been constantly improving, meeting the development needs of new energy vehicles for new energy, new materials, the internet, big data and artificial intelligence, and making enterprises more confidence in their development.

"At present, the transformation of fuel vehicles to new energy vehicles has become an industry trend in the country. Enterprises must actively embrace the change and transform towards the new energy vehicle track." Gao Yun suggested that the province should further encourage component enterprises to cross the "threshold" of technology, investment and talent factors, integrate into the new energy vehicle industry chain, optimize the industrial ecology, strengthen cooperation and communication, and set up an innovation alliance to jointly enhance their technological innovation capabilities. The province should also further strengthen guidance and policy support, accelerate the cultivation of business entities, offer quality services, and assist enterprises in solving practical difficulties.