A BYD Ocean-M electric car is displayed at the 2024 Auto China in Beijing on April 25, 2024. [Photo/VCG]
Leaders of major automobile companies expressed optimism regarding the potential of the automobile industry in Anhui province during the ongoing Beijing International Automotive Exhibition. The source of that optimism is the province's complete industrial chain and unprecedented support from the government.
According to local authorities, Anhui produces one of every 10 new energy vehicles in China and one of every four exported automobiles.
In the first quarter of this year, the province's automobile production reached 620,000, of which 207,000 are NEVs, accounting for 9.4 percent and 9.8 percent of the national total, respectively. Additionally, Anhui's automobile exports reached 326,000, up 28 percent year-on-year and was 24.6 percent of the national total.
Anhui has seven automobile producers, including Chery, Nio, Volkswagen and BYD, which have heavily invested in the eastern inland province. It has over 2,800 auto parts and related companies covering power batteries, motor control, intelligent connectivity, lightweight materials, sales, maintenance and recycling.
"Anhui puts its automobile industry first, accelerating the development of finished vehicles, core parts and an after-sales market. We are constructing an NEV industrial cluster with global competitiveness," said Han Jun, Party secretary of Anhui, at a conference during the exhibition on Sunday.
"I hope for more resources to be invested in Anhui, more high-quality projects to be brought to Anhui, and advanced technologies to be introduced to Anhui, where good projects lack no good policies, good applications lack no good scenarios, and good ideas lack no talent," Han added.
Wang Chuanfu, BYD's chairman and president, said at the event that he was inspired by Han's speech and will increase investment in Anhui.
The company has settled its biggest NEV production base in the provincial capital, Hefei, and has new power battery and key parts manufacturing bases in Wuhu, Bengbu, Chuzhou and Fuyang. It also has more than 140 sales service centers, making Its investment in Anhui roughly 70 billion yuan ($9.7 billion).
BYD produced half of the province's NEVs from January to March and hired 28,000 new employees this year.
The company debuted its Qin L and Seal 06 models during the exhibition, both produced in Hefei. "Anhui is a place of charm, an emerging industrial powerhouse, and the only province covered by both the integrated development of the Yangtze River Delta and the national strategy of the rise of Central China. It is showing signs of substantial yet latent potential and robust momentum and is at a crucial stage of significant and promising development," he said.
Chery Exeed08 car is displayed at the 2024 Auto China in Beijing on April 25, 2024. [Photo/VCG]
Chery Automobile Co, headquartered in Wuhu city, reaped 300 billion yuan in revenue last year. In the first quarter, it sold 530,000 automobiles, up 60.3 percent year-on-year. Sales of NEVs surged 124.3 percent. The company's 253,000 vehicles were exported to over 80 countries and regions. The number of exports ranks first among Chinese brands.
On April 19, Chery Automobile signed a pact with Spain's Ebro-EV Motors to develop NEVs through a joint venture in Barcelona, making the company the first Chinese automaker to produce vehicles in Europe. On April 25, it signed a cooperative agreement with Nvidia in automatic driving.
"Deep involvement in globalization is the necessary path for Anhui to transform from a major automobile province to a strong automobile province," said Yin Tongyu, chairman of the board, adding that the company will focus on technological innovation to promote Anhui's high-quality development.
The company brought 27 models to the exhibition, 80 percent of which are NEVs.
Electric vehicle startup NIO, headquartered in Hefei, occupies about 60 percent of the market share of high-end pure EVs whose price is higher than 300,000 yuan, said Li Bin, its founder and chairman.
NIO produced 160,000 EVs in 2023, up 30 percent year-on-year, compared with the domestic average growth of 24.7 percent. The company previously cooperated in production with JAC Group, a State-owned automobile company. As of March, it has its own factory.
Li said Anhui has advantages in developing intelligent EVs because it has a big talent pool from leading universities and good policies to encourage them to stay. It also has numerous auto-related companies in the supply chain to help decrease costs.
"Producing an EV here can save 4,000 to 5,000 yuan in logistics costs," he said. "Anhui provides a good business environment. The government officials think like enterprises and give us much support."
NIO plans to build 1,000 EV charging stations in Anhui.
"I believe Anhui will definitely become a global hub for innovation and industry clustering in smart electric vehicles, and it will also become the most convenient and enjoyable place globally for using electric vehicles," he added.
Alexandre Catala, managing director of IDIADA China, a Spanish automotive engineering company, said Anhui province actively supports the auto industry with high ambition and determination, which is why companies like Chery Automobile and NIO develop so fast.
He said he is happy for Chery Automobile's joint venture in Barcelona and looks forward to future cooperation in the European market.
