The automobile industry has established a comprehensive supply chain, ranging from auto parts to complete vehicles. In March of next year, residents of Xiaoshan will witness the arrival of locally produced cars. This year marks a significant milestone as the first automotive manufacturing project in Xiaoshan, the "Gio Micro-Vehicle Project," has been successfully established in the Xiaoshan Economic and Technological Development Zone. It is anticipated that the first batch of vehicles will roll off the production line by March next year. With a total investment of 1 billion yuan, the project is expected to produce 150,000 micro-vehicles and 150,000 engines annually. Upon full operation, it aims to achieve a production and sales volume of 25,000 vehicles. The launch of the Gio project signifies that Xiaoshan’s automotive industry now has a fully integrated supply chain, from components to finished vehicles. Over the years, Xiaoshan has focused on building a solid foundation for automotive manufacturing, actively developing and planning the growth of the sector. The automobile industry is set to become a key driver for the region's industrial leap forward. Creating a new identity for the auto parts industry Xiaoshan is known as the “Hometown of China’s Mirror Industry,” “China’s Down Town,” “China Steel Town,” and “China Chemical Fiber Town.” These are just some of the well-known industry “business cards” that the area has earned over time. Now, Xiaoshan is working to establish another prestigious title: the largest auto parts production base in the province. With confidence, Xiaoshan people are making this vision a reality. According to statistics, there are over 1,500 mechanical auto parts enterprises in the area, including major companies like Wanxiang Group and Asia Pacific Group, which are recognized for their high-quality products and strong market presence. These companies have full production capabilities for auto parts and automotive electronics, with research and development efforts leading in Zhejiang Province. In 2006, the output value of auto parts enterprises reached 54.9 billion yuan, accounting for 21.9% of the region's total industrial output. In May 2006, the “China Auto Parts Industrial Base” was officially established in the Linjiang Industrial Park, marking the inclusion of five provincial-level high-tech industrial bases focused on auto electronics. The layout of Xiaoshan’s automotive industry has been further optimized. The initial development area for the auto electronics base covers 1,000 mu, with additional expansion planned in the Qiaonan area of the development zone. The Linjiang Industrial Park has also commissioned the Dongfeng Design Institute to develop a detailed plan for a 20-square-kilometer auto industry base. Large projects and frequent investments A thriving industry requires strong supporting projects. The local government has prioritized the auto parts industry in its regional development strategy, offering incentives such as project construction support and interest subsidies. As a result, a series of large-scale and high-quality projects have taken root in Xiaoshan. In September 2006, CNHTC launched a 2-billion-yuan Hangzhou engine project, aiming to produce 100,000 WD615 engines by 2008. The first phase of the project is already operational. ZF Group, a global top-500 company, invested in ZF Transmission Technology (Hangzhou) Co., Ltd., located in the Qiaonan block of the Economic and Technological Development Zone. The facility produces 40,000 transmissions annually, generating an output value of 77.83 million yuan between January and September. Another project, Pulishiyudi Axle (Hangzhou) Co., Ltd., a joint venture between Japan’s Pulishi Industrial and Nissan Diesel, settled in the Qiaonan block and plans to produce 18,000 vehicle assemblies and axles annually, with projected sales reaching 450 million yuan by 2010. The Youth Engine Group’s engine project officially commenced in the Xiaoshan Economic and Technological Development Zone in October. Meanwhile, the Sanyi Group’s crane lifting project in the Linjiang Industrial Park is under negotiation, with the first phase expected to begin soon. Additionally, the Taiwan Yulon Group signed an agreement at the Western Conference to invest 3.5 billion yuan in mid-to-high-end passenger vehicle projects. Technology brings dreams to life The opening of the universal electric car company "Prima" showed no signs of traditional gasoline-powered vehicles. Instead, a silver-white machine appeared, powered by a lithium battery developed by Wanxiang itself. Last year, two national "863" projects undertaken by Wanxiang Group were successfully completed and accepted at the national level. Behind these achievements lies a strong technological foundation. Currently, the Xiaoshan auto parts industry houses a national-level laboratory, two postdoctoral workstations, and two national-level technology centers (Wanxiang Group and Asia Pacific Electromechanical), giving it a competitive edge and strong potential for sustainable development. For instance, Wanxiang Group is one of only 520 state-supported large enterprises and 120 pilot enterprises under the State Council. Zhejiang Asia-Pacific Mechanical & Electrical Co., Ltd. is the only company in China capable of R&D and production of complete automotive brake systems. Its self-developed anti-lock braking system (ABS) filled a domestic gap. Hangzhou Advance Gearbox Group Co., Ltd. is among the largest transmission manufacturers in China, collaborating with Italian Marelli and Chery to develop automatic transmissions. A joint research institute between Wuhan University and the Linjiang Industrial Park is also in the works, while the laser equipment industry base for the automotive sector is being accelerated. The automobile industry forms a complete chain This "car dream" began more than 30 years ago when Xiaoshan started with small, basic gadgets. Through trials and challenges, many companies have now entered both international and domestic automotive supply chains. For example, Zhejiang Asia-Pacific Electromechanical Co., Ltd. supplies brakes to models like Jetta, Red Flag, and Nissan, and its products have also entered the supply chains of Volkswagen and Delphi. Hangzhou Permanent Magnet Group provides accessories for Changan Suzuki and Shanghai Santana, with exports reaching Europe and the United States. After nearly three decades of development, the main products of Xiaoshan’s auto parts industry have formed a relatively complete industrial chain, covering internal combustion engines, gearboxes, universal joints, axles, bearings, precision parts, reducers, transmission shafts, and brake systems. The dream is still ahead, and Xiaoshan’s private enterprises, known for their boldness, are turning these “car dreams” into reality. Zhejiang Zhongyu Group broke through industry barriers by entering the automotive assembly and manufacturing sector through equity transfers and mergers. Wanxiang, known for daring to take risks, has ventured into electric vehicles. With the introduction of the GIO vehicle project this year, Xiaoshan’s automotive industry has now formed a complete chain from auto parts to final vehicles.

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