The automobile industry in Xiaoshan has developed into a comprehensive chain, ranging from auto parts to complete vehicles. In March of next year, the local community is excited to witness the launch of locally produced cars. This year marks a significant milestone as the first auto vehicle manufacturing project in Xiaoshan, the GIO Micro-vehicle project, was established in the Xiaoshan Economic and Technological Development Zone. The project, with a total investment of 1 billion yuan, is expected to begin production by next March. It will produce 150,000 micro-vehicles and 150,000 engines annually, with an initial target of 25,000 units in sales once it becomes operational. The successful implementation of the GIO project has solidified the full industrial chain of the automobile sector in the district, from components to finished vehicles. Over the years, Xiaoshan has actively worked on building a strong base for automotive manufacturing, focusing on planning and developing the industry. As a result, the automobile manufacturing sector is now seen as a key driver for the region’s industrial growth and development. Xiaoshan is now creating a new identity for itself in the auto parts industry. Known for its “Hometown of China's Mirror Industry,” “China’s Down Town,” “China Steel Town,” and “China Chemical Fiber Town,” the area is now aiming to become the largest auto parts production base in the province. With over 1,500 auto parts enterprises, including major players like Wanxiang Group and Asia Pacific Group, Xiaoshan has built a robust ecosystem that supports both traditional and high-tech automotive components. In 2006 alone, the auto parts industry generated an output value of 54.9 billion yuan, accounting for nearly a quarter of the region’s total industrial output. The establishment of the “China Auto Parts Industrial Base” in Linjiang Industrial Park further strengthened the city’s position in the industry. The planned area for the auto electronics industry base covers 1,000 mu, with expansion plans underway in the Qiaonan block. Additionally, Linjiang Industrial Park commissioned the Dongfeng Design Institute to develop a detailed plan for a 20-square-kilometer auto industry base. To support this growth, the local government prioritized the auto parts industry in its development strategy, offering incentives and subsidies to attract large-scale projects. Notable investments include CNHTC’s 2-billion-yuan engine project, ZF Group’s transmission technology facility, and Pulishiyudi Axle’s joint venture with Nissan Diesel. Other major projects, such as the Youth Engine Group’s engine project and the Yulon Group’s passenger vehicle initiative, are also under development or in negotiation. Technology plays a vital role in turning these ambitions into reality. Companies like Wanxiang have made significant strides in electric vehicle innovation, with their lithium battery technology being a standout achievement. The company has successfully completed two national "863" projects, demonstrating its leadership in the field. Xiaoshan’s auto parts industry is supported by advanced research facilities, including a national-level laboratory, post-doctoral workstations, and multiple national-level technology centers. Companies like Zhejiang Asia-Pacific Electromechanical Co., Ltd. have achieved global recognition for their brake systems, supplying major automakers such as Volkswagen and Delphi. Meanwhile, Hangzhou Advance Gearbox Group collaborates with international partners to develop cutting-edge transmissions. The establishment of the Wuhan University Xiaoshan Auto Parts Research Institute further strengthens the region’s technological foundation. For over three decades, Xiaoshan’s auto parts industry has evolved from small-scale production to a fully integrated supply chain. Products now include engines, gearboxes, axles, brakes, and more, with many companies supplying globally renowned brands. Private enterprises, known for their boldness and innovation, are pushing the boundaries even further. Through mergers and acquisitions, companies like Zhejiang Zhongyu have entered the automotive assembly sector, while Wanxiang continues to pioneer electric vehicles. With the GIO project now in place, Xiaoshan has completed its auto industry chain, from parts to final vehicles. This marks a new era of growth and innovation, setting the stage for a bright future in the automotive sector.

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