Guangzhou releases policies to boost vehicle, auto parts industrial chain development

Shanghai (Gasgoo)- The municipal government of Guangzhou, the capital of China’s Guangdong province, recently issued a document including a slew of measures to boost the development of automobile and key auto component industrial chains, which will remain effective until December 31, 2025. 

According to the document, Guangzhou's authorities plan to build three industrial parks for core automotive components. Under the mid-term goal of achieving a ratio of auto parts to complete vehicle production values no less than 0.5:1, local authorities will support Zengcheng, Baiyun, and Conghua districts in developing automotive electronics and other core component industries.

XPeng G3; photo credit: XPeng

As part of measures to strengthen the in-house innovation capability of the automotive industrial chain, local firms will be encouraged to boost the design, testing, and production of automotive-grade chips, and develop key technologies related to platforms of intelligent driving, smart cockpit, vehicle control, as well as NEV core parts including batteries, electric motors, and electric control units.

The Guangzhou Municipal Science and Technology Bureau will budget up to 500 million yuan ($74.121 million) to support companies along the automobile and component industrial chains in jointly researching and developing core auto parts and technologies.

To promote the revolution of “synergetic definition of vehicles by both software and hardware”, local authorities will encourage automakers to build full-stack R&D systems for electrical/electronic architecture, complete vehicle basic software, smart cockpit software, and autonomous driving software, and make breakthroughs in high-definition map, software & hardware integration, and software algorithm key technologies. Thus, 10 million yuan ($1.482 million) per model will be awarded to complete vehicle firms which develop and manufacture Level 3 and higher level autonomous driving vehicles models. Each company will be given incentives worth no more than 30 million yuan ($4.447 million).