Automotive Industry: Boosting Wuhan's Leading Rise in Central China

The 7th Wuhan International Auto Show was held in the first year of the “Eleventh Five-Year Plan”. It also met the country’s important opportunity for the development strategy of the rise of Central China. As a pillar industry in Wuhan, the automotive industry will play the role that will play the first role in the rise of central China in Wuhan and even Hubei. Recently, Yue Yong, the standing committee member and deputy mayor of Wuhan City, talked about this issue.

Vice Mayor Yue said that the automobile and machinery equipment manufacturing industry is the pillar industry of our city. In 2005, the enterprises above designated size in the automotive and machinery equipment manufacturing industry completed a total industrial output value of 39.3 billion yuan, accounting for 17.9 percent of the city's total industrial output value (238.6 billion yuan), which is second only to the steel industry (46.8 billion yuan). The city's pillar industries; in 2005, there were 5 enterprises with an annual output value of over 10 billion yuan (Wugang, Wuyan, Petrochemical, Huazhong Power Network, and Shenlong), of which Shenlong Motor Co., Ltd. is on the list. From the statistical data of industrial economy from January to June this year, the industrial economy was characterized by multi-polar development. From January to June, the total output value of the automobile and machinery equipment manufacturing industry was 26.466 billion yuan, and the total output value of the steel industry was 201.81. Billion, the automobile and machinery equipment manufacturing industry has become the industry that has driven the largest increase in industrial economy this year.

During the “Eleventh Five-Year Plan” period, we will focus on the development of automotive industry clusters and foster and extend the automotive industry chain.

The first is to further promote the growth of vehicle auto companies. At the end of the “Eleventh Five-Year Plan” period, the company will focus on the implementation of the second phase expansion of Shenlong Company, the new construction of Shenlong Second Plant, the expansion of Dongfeng Honda Company, and the R&D and industrialization of electric vehicles to form an annual output. More than 600,000 vehicles have complete vehicle production capacity. The second is to speed up the formation of auto parts industrial clusters and strive to enter the national and global procurement system. Following the trend of systematic and modular procurement of complete vehicle auto companies, planning to introduce a batch of key parts and components, effectively lengthen the automotive industry chain, expand production scale, reduce production costs, and increase product competitiveness. Focus on the development of engine and transmission assembly, front and rear axle assembly, dynamic braking system, stamping parts center and other core components. The third is to encourage enterprises to enhance their independent innovation capabilities. Based on the Dongfeng Electric Vehicle R&D Center and the Dongfeng Cummins Engine R&D Center, it will increase investment in R&D and continuously improve the technological research and development capabilities of the Wuhan automotive industry.

As far as the auto show is concerned, what tasks should be focused on, Vice Mayor Yue said, first of all, as a government-led auto show, Wuhan should further give play to the functions of “gathering” and “dispribing” in this city, so as to make the auto show serve as an industrial cluster. Through industrial clusters, the industry chain continues to expand, driving the continuous development and common progress of the automotive industry in Central China and even the whole country; secondly, making full use of “two kinds of resources” (domestic and international resources) and “two markets” (international and domestic (Marketing) Advantages: To build an international brand; Third, as the main contractor of the auto show, it is necessary to carefully study the development trend of the international and domestic auto industries, master the pulse of the automotive industry, and further establish a bridge for domestic auto companies to enter the international auto industry chain.