Huadu Auto City in Guangzhou is Driven to Speed Ahead

Huadu Auto City is in the southwest of downtown Huadu, a city in Guangdong Province, China, boasting convenient land, marine and air access. It's only 22 kilometers away from Guangzhou and 12 kms from Guangzhou International Airport. Huadu also features a harbor in the south of the city, and a light rail system is going to connect Guangzhou and Huadu Auto City in the near future.

As the first authorized manufacturing base of auto parts in Guangdong Province, Huadu Auto City is developing into the most competitive, world-class auto city in South China by adopting the strategy of gradually restructuring the industrial cross-section of Guangzhou and building an industrial satellite city. The Huadu Auto City development plan is an 8-year project running from 2002 to 2010. The City is expected to have an annual production capacity of 800,000 units of commercial vehicles and passenger cars by 2010, with a total land area to hit 50 square kilometers.

Reports are that the City has attracted some 100 investment projects involving famous international auto parts makers, including Calsonic Kansei, Alfa, Unipres, etc.

Current State

So far, the Huadu automobile industrial base has attracted a total of 15 billion yuan (renminbi) worth of investments from over 120 auto parts makers, with 10 of them registering investment of over US$3 million each. Huadu Auto City has not only been playing a key role in the Guangzhou auto industry cluster, but also a pillar in the Huadu District of Guangzhou. It has literally formed an all-round automotive industrial chain, integrating auto research and development, complete-car production, parts and accessory production, auto trade, human resources segments, as well as auto-related academic institutions, with such development helping to drive Guangzhou ahead to be one of China's top three manufacturing bases of auto vehicles.

Industry authorities disclosed that the auto sector in Huadu turned out an estimated 400,000 vehicles in 2007, which is expected to reach 500,000 units by 2010.

In 2006, the output value of the auto industry exceeded 30 billion yuan; while the auto sector in Huadu, led by Dong Feng Nissan, has been developing rapidly since 2003. The output value of complete-vehicles reached 28.9 billion yuan, and that of auto parts reached 5.5 billion yuan in 2006. In the first four months of 2007, the output value of the entire auto industry in Huadu reached 13 billion yuan, taking up about 46.2% of overall industrial output value of Huadu.

Leading Companies

Over 40 medium-sized and large enterprises have settled in the Huadu auto industry base, such as Guangzhou Hitachi Unisia Automotive, Ltd., Guangzhou Unipres stamping Co., Ltd., Yorozu Bao Mit Automotive, Sakamaki Yuji TF, Huajing Auto Steel Parts Co., Ltd, ITOCHU-Marubeni Steel Corporation and so on, in addition to Dong Feng and its R&D Center; meanwhile, other independent makers of aftermarket auto parts have been gradually upgrading their production scales.

Dong Feng Nissan Passenger Auto Co., Ltd.

Established in Huadu district of Guangzhou on June 16, 2003, Dong Feng Nissan Passenger Vehicle Co., Ltd. covers an area of 1.7 million square meters. The company now operates two factories, one each in Huadu and Xiangfang, with a total annual production capacity of 65,000 cars and 3,900 employees.

Guangzhou Unit Stamped-Procducts Co., Ltd.

Headquartered in Yokohama, Japan, the company possesses seven manufacturing bases and 14 affiliated companies in Japan, and operates six overseas factories in Britain, France, America, Mexico and China. It has invested US$39 million in China. The Chinese factory mainly produces stamped products for vehicles, covering a land area of 150,000 square meters in Huadu district of Guangzhou.

Calsonic Kansei

It mainly manufactures auto gauges, interior decoration parts, exhaust system parts and mufflers etc.

Guangzhou Hitachi Unisia Automotive, Ltd.

The firm is specialized in the production and sales of steering system parts and water pumps.

Lio Ho-Kiriu Mechanism Co., Ltd.

The company is a joint venture between Taiwan's Lio Ho Machine Ltd. and Japan's Kiriu Corp., mainly producing automotive brake, engine parts, compressors and parts for household electrical appliances. Its products are widely adopted by major engine makers such as Dong Feng Nissan, FAW-Haima, Guangzhou Hitachi Compressor, etc., for exports to Japan, Southeast Asia and other countries.

Guangzhou Yorozu Bao Mit Automotive Parts Co., Ltd.

Guangzhou Yorozu Bao Mit Automotive Parts Co., Ltd. is a 270 million yuan joint venture by Shanghai Baosteel International Economic and Trade Co. Ltd., Japan Y OROZU and Mitsui&Co., covering a land area of 64.000 square meters.

Imasen Electric Industrial Co., Ltd.

Founded in December 2001, the company kicked off its manufacturing operation in January 2003, mainly producing auto/manual seat adjusters, electric seat adjusters, auto lights, window lifts, moulds and jigs, etc.

Guangzhou Yifeng Auto Parts Manufacturing Co., Ltd.

Having been set up for over 10 years, Guangzhou Yifeng Auto Parts and Accessories Co., Ltd is a professional manufacturer and distributor of automotive filters, mainly specializing in oil filters, air filters, fuel filters, cabin filters, available in over 700 types. These products are suitable for various Japanese, Korean, American, and European car models.

Future Prospects

The auto industry in Huadu will gradually diversify into the fields of car racing and car-based tourism in the future. Huadu authorities have submitted a proposal to the Guangzhou City Government to build an F1 racing site, and have set aside a land area of 3 kms long and 2 kms wide to build standard racing tracks.

Besides, Huadu is aggressively discussing with the SAE (Society of Auto Engineering) about utilizing the existing road system for street racing, such as the Monaco Grand Prix. Plus, Huadu is also planning to establish an auto museum, combining auto sales and sightseeing. It is estimated that the total production value of auto and related industries in Huadu will generate some 100 billion yuan for the city.

Huadu has been officially designated as the site for the "National Torch Program-Guangzhou Huadu Auto and Parts Industry Base" and a "Manufacturing Base of Auto Parts in China;" as such one believes that Huadu Auto City will continue to grow and prosper further.