Shanghai, June 12 (Gasgoo.com) The public data show that the total auto industry value of Guangdong in 2009 reached 300 billion yuan, ranked the third place after Jilin and Shandong, and now a new wave of investment will likely bring Guangdong up to the top notch.
Recently, the Guangdong provincial Development and Reform Commission issued a notification about "Guangdong modern industry 500 projects", and 26 of the 500 projects are related with auto industry and new energy vehicles, which have a total investment of 63 billion yuan. This new wave of investment will propel Guangdong to move ahead of the former two provinces.
Volkswagen in May announced an additional investment of 1.6 billion euros in China. Besides, the locations of the new plants of its two joint ventures: FAW Volkswagen and Shanghai Volkswagen are also expected to be confirmed.
FAW VW recently signed a contract with the local government to build the company's first southern plant in Foshan city of Guangdong province, with an annual production capacity of 300,000 units and a total investment of 8 billion yuan, while Shanghai VW's new plant may settle in Zengcheng with the same amount of investment.
In fact, there are many auto-related industries, such as: automotive electronics, equipment, lighting and so forth. Therefore, the scale of total investment will be very enormous. Thanks to the pulling effect of the automobile industry, many local governments offer favorable land and tax policies, even provide subsidies to encourage the development of its auto industry.
