Guangzhou issues 2025 strategy for auto industry to raise NEV production capacity

Shanghai (Gasgoo)- On April 17, Guangzhou government officially issued the 2025 Strategy for Guangzhou auto industry that aims to increase the annual new energy vehicle (NEV) production capacity to 1 million units in 2025, one of the top 3 Chinese cities in NEV production capacity.

According to the strategy, Guangzhou government strives to be the champion in vehicle output and sales among Chinese auto manufacturing bases with auto production capacity up to 5 million units per year. Besides, the capital of Guangdong province aims to achieve annual production value of auto manufacturing industry to RMB 1 trillion.

In addition, the strategy also mentions that Guangzhou will make effort to realize the industrialization of intelligent-connected vehicle (ICV) and have 80% of new NEVs equipped with L1 to L4 autonomous driving systems.

In accordance with the 2025 strategy, Guangzhou government will focus on the R&D of leading-edge auto technologies as well as key generic technologies. Besides, the government will set up an innovation development fund for auto industry and adopts some marketization tools to gradually favor China-branded vehicles, NEVs, ICVs, fuel-cell vehicles and core auto parts. 

Additionally, China-branded vehicles, NEVs, ICVs, fuel-cell vehicles and core auto parts will be given preferential credit supports which help enlarge the companies’ financing channels through capital markets, finance lease and Internet finance, etc.

The annual vehicle output in Guangzhou raised from 1.384 million units in 2012 to 3.108 million units in 2017, with an average annual compound growth of 17.6%. In the past 2017, the annual vehicle output in Guangzhou accounted for 10.7% of national output, ranking first among auto megacities in China. Besides, Guangzhou’s total production value of auto manufacturing industry reached RMB 514.2 billion in 2017, jumping 17.4% year on year. Among that, the annual production value of auto component manufacturing industry grew 14.4% from a year ago to RMB 136.4 billion.

In 2016, the annual output of some Chinese brands like GAC Trumpchi and Senova occupies 20.4% of total output in Guangzhou with a total of 537,300 units manufactured. Especially, the GAC Trumpchi delivered 508,600 vehicles in 2017, achieving year-on-year sales growth for 7 consecutive years.