China’s Tianjin city wants new energy vehicles to account for 45% of all car production by 2027

Shanghai (Gasgoo)- The Tianjin Municipal Government recently issued the "the Plan for Accelerating the Development of the New Energy and Intelligent Connected Vehicle Industry (2023-2027)." This comprehensive plan outlines strategic goals and milestones aimed at propelling the city's new energy vehicle (NEV) and intelligent connected vehicle (ICV) sectors to new heights.

Toyota bZ3; photo credit: FAW-Toyota

By the year 2025, the plan envisions that NEVs will account for 30% of the total automobile production in the city, solidifying the industry's presence and scale. Furthermore, it aims to promote the commercial application of ICVs in designated areas and specific scenarios, fostering a distinct and relatively complete supply chain for the industry. Looking ahead to 2027, the plan aims for NEVs to comprise 45% of the city's total automobile output, positioning Tianjin as a pivotal hub for NEV manufacturing in northern China and a national demonstration city for ICV applications and achievements.

To achieve these ambitious objectives, the plan emphasizes the acceleration of NEV production. Collaboration with major automotive groups is encouraged to steer more vehicle models towards production in Tianjin. Additionally, support is extended to car manufacturers to focus their NEV endeavors in the city, facilitating the introduction of NEV models for prompt and full-scale production.

In addition, efforts are directed towards expanding R&D and sales functions within Tianjin, according to the plan. Car companies are encouraged to enlarge their existing R&D centers, incubate technical teams in the city, and expedite autonomous model development. The plan also encourages the establishment of digital intelligent connected vehicle towns by automakers, aimed at creating solutions for vehicle-road coordination systems. Furthermore, it promotes car companies to establish NEV sales companies, utilizing Tianjin Port's roll-on/roll-off shipping routes and China-Europe freight train operations to establish Tianjin as an export base.

The plan also explicitly outlines the acceleration of the construction of the ICV pilot zone. It advocates advancing the core zone within the Tianjin (Xiqing) National-level Intelligent Connected Vehicle Pilot Zone and supports the expansion of such zones in Tianjin Economic-Technological Development Area, Sino-Singapore Tianjin Eco-City, Tianjin Dongjiang Comprehensive Bonded Zone, Jinnan District, Hebei District, Wuqing District, and Baodi District. Furthermore, the plan promotes the development of a three-tier testing system, encompassing virtual testing, closed-ground testing, and open-road testing, to enhance vehicle connectivity testing and verification capabilities. It also calls for pioneering autonomous driving policies within the pilot zone, thereby advancing legislation for ICVs.

Moreover, the plan advocates the consolidation and development of core automotive components manufacturers. In particular, it highlights the expansion and upgrading of the power battery industry. The plan calls for the expedited development of key projects related to power batteries and the transformation of battery production enterprises from consumer batteries to automotive power batteries, with a continuous increase in power battery production capacity. It aims to attract leading companies in the power battery sector to invest in Tianjin, supporting R&D and manufacturing bases for next-generation battery technologies such as solid-state batteries.

Furthermore, the plan emphasizes the acceleration of automotive-grade chip development. It entails increased efforts in the R&D of automotive-grade microcontroller unit (MCU) chips, radio-frequency (RF) chips, and video transmission chips, with a goal of replacing imported RF chips with locally-made ones. This initiative aims to establish a leading edge in automotive safety and vehicle communication security. It also proposes the creation of the China Automotive Chip Standard Testing Service Alliance to establish standards for automotive chips and evaluation systems for testing and certification.