Zhejiang is Home to One-of-Five Auto-Parts Makers in China
2009/04/10 | By CENSBy the end of 2006, China was home to some 6,142 auto-parts makers that are scattered across the five major areas: the Bohai coastal zone, Yangtze-River Delta, Zhu-River Delta, Hubei Province, and the Midwest, with 1,279 or 20.82% of which in Zhejiang Province's Yangtze-River Delta.
Since China began its economic reform and market liberalization some 20 years ago, Zhejiang has evolved from scratch into a major auto-parts production base consisting of seven main zones producing vehicles and auto parts: Hangzhou, Ningbo, Wenzhou, Taizhou, Jinhua, Shaoxing, and Jiaxing, all of which are interconnected by a convenient freeway network. Zhejiang is expected to play an even more prominent role in the nation's auto-parts industry.
The following profiles the seven main auto industrial zones in Zhejiang Province.
Hangzhou's auto-parts industry generated over US$10 billion in 2007 revenues and is home to 1,500 auto-parts makers, whose main products include castings, forgings, molds, fasteners, auto accessories and tools.
Ningbo
The base of over 3,000 auto-parts enterprises, Ningbo's auto-parts industry turned out products valued at US$5 billion in 2007. Many local makers are OE (original equipment) suppliers for American and European automakers, reflective of their high technological level.
Ningbo's auto-parts industry will purportedly lead the sector in Zhejiang Province or even all of China in production scale, technological strength and export by 2010, becoming the center of manufacturing, information and procurement of the province's auto-parts industry.
There are 20 auto-parts makers with annual production value exceeding US$10 million and eight with over US$20 million in production value in Yuhuan County, Taizhou, where 3,000 auto parts suppliers exist including family businesses. Most of such makers are in a tightly-knit cluster within 10 square kilometers, where the integrated supply chain handles raw materials, initial processing, assembly of finished products, surface treatment, packaging, and logistics. Yuhuan's auto-parts industry generated US$3.88 billion in production value in 2007, one third of the county's total industrial output.
Jinhua
The base of over 10 automakers, motorcycle makers and performance-tuned cars, as well as 200 auto-parts enterprises, Jinhua City's car-making and auto-parts making sectors turned out US$3.25 billion of products in 2006.
The city's vehicle makers mainly produce large luxury coaches, heavy-duty trucks, and low-chassis city buses, while the auto-parts makers turn out 200 types of products, including high value-added ones as gears and gearboxes. Jinhua's auto and auto-parts sectors command over 70% share of the domestic large luxury coach market, over 25% share of the auto and motorcycle wheel market, and 10% of the gearbox and gears market.
Wenzhou (Ruian City)
After over 20 years of development, the city has cultivated a complete supply chain for vehicles, motorcycles and parts, which are turned out by 1,200 makers and some 120,000 employees whose annual production value reaches US$1.7 billion.
With 70% of its output exported, the city has obviously built an industry for auto and motorcycle parts-mainly wheels and parts-with global standards.
Jiaxing
With its makers of vehicles and auto-parts mainly spread across the Jiaxing Economic Development Zone, Jiashan and Haiyan, such suppliers in the city boast an annual production value reaching US$500 million. Capitalized with a total investment of US$600 million, the Jiaxing Economic Development Zone is home to 27 auto-parts makers, 20 of which are operating, including three among the world's top-500.
Zhejiang's Major Production Bases and Their Auto-Parts Exports (Unit: US$1,000) | |||||
Base | 2008 export | 2007 export | Change | ||
Value | Share | Value | Share | ||
Ningbo | 4,608,219 | 30% | 3,825,122 | 30% | 20% |
Hangzhou | 2,629,199 | 17% | 2,319,669 | 18% | 13% |
Shaoxing | 1,740,231 | 11% | 1,381,194 | 11% | 26% |
Jiaxing | 1,410,421 | 9% | 1,167,392 | 9% | 21% |
Wenzhou | 1,190,351 | 8% | 1,014,775 | 8% | 17% |
Taizhou | 1,176,444 | 8% | 936,472 | 7% | 26% |
Jinhua | 896,929 | 6% | 754,533 | 6% | 19% |
Others | 1,777,656 | 12% | 1,430,434 | 11% | 24% |
Total | 15,429,450 | 100% | 12,829,591 | 100% | 20% |
Source: Zhejiang Foreign Trade & Economic Cooperation Bureau | |||||