Domestic automotive producers shift up a gear

The vigorous new momentum brought to Shanxi province by the development of new energy vehicles demonstrates the nation's independent innovation, core competitiveness and international influence.

This year's government work report for Shanxi proposed to "cultivate growth areas for foreign trade such as rail transportation, NEVs and photovoltaics".

Over the past decade, Shanxi has been promoting the development of the NEV industry chain, enriching its product structure and core competitiveness in a broader scope. The province has allocated 30 million yuan ($4.14 million) annually to support the development of the NEV industry since 2020.

At the production base of Dayun Group, an auto manufacturer based in Yuncheng, Shanxi province, NEVs are being produced in an orderly manner, with intelligent technologies used throughout the entire production process of stamping, welding, painting and assembly. Evolving from a motorcycle producer, this privately owned enterprise founded in 1987 has embarked on a path of continuous iterative industrial transformation and upgrading since it planned to tap into the NEV industry in 2017.

That year, Yuan Qinshan, chairman of Dayun, conceived of the idea to enter the new energy passenger car market. After years of research and development, in September 2020, Dayun's first pure electric small SUV, the Yue Hu, and MPV model Yuan Zhi M1 rolled off the production line at the Yuncheng NEV production base.

In August 2022, Dayun's high-end NEV brand, Yuanhang, made its first appearance at the Chengdu auto show in Southwest China's Sichuan province. The debut of four models, the high-end sedans Y6 and Y7, as well as the high-end SUV models H8 and H9, attracted industry attention, marking the first step of Shanxi's automobile brand entering the high-end market.

The NEV industry chain includes upstream raw materials; midstream "three-electric" systems for power, transmission and control; and downstream vehicle manufacturing, as well as the production of components. The industry chain is extensive, highly related and has a strong driving effect for many industries, thus playing an important role in boosting demand, stabilizing industry and promoting economic development.

As a leading player in the NEV sector in Shanxi, Dayun not only focuses on its own development, but also boosts the common growth of supporting enterprises in the industry chain. It has cooperated with more than 40 suppliers in the province, including Jianlong Steel Holdings and Yuncheng Chuangda Automobile Spare Parts, driving the leapfrog development of the industry chain with mutual benefits and common prosperity.

"Based on the judgment of the market situation of the future automotive industry, Dayun will adhere to the strategy of 'balanced development of commercial and passenger vehicles' in the next five years. By focusing on the core business of NEVs, building two brands of Dayun and Yuanhang, exploring both domestic and international markets, and building an automotive ecosystem covering the integrated development of upstream and downstream operations, Dayun aims to build itself into a first-class R&D and manufacturing base for both commercial and passenger NEVs in the country," said Guo Jinfeng, Party secretary of Dayun Group.

Yuan said that the second half of this year will be a major turning point for the company. "Exports will increase significantly," he said, adding that Dayun will soon obtain product certification for the European market and there is interest from potential customers in Germany, Mexico and Myanmar, as well as many countries and regions in Southeast Asia.

Similar to Dayun, methanol-powered vehicles produced by Chinese auto giant Geely also show great potential.

Geely's production base in Jinzhong city, established in 2011, has constructed a flexible production line for electric, methanol and gasoline vehicles with an annual production capacity of 200,000 units, with an NEV rolling off the line every 90 seconds.

As of now, the NEV industry chain in Jinzhong has gathered 27 companies and more than 60 related supporting enterprises, gradually forming a competitive industrial cluster and driving the city's automotive industry output value to nearly 30 billion yuan a year.

Jinzhong will continue to accelerate its new energy passenger vehicle production capacity, improve methanol refueling system construction, expand the industry's scale and increase the influence of the city as the methanol vehicle capital, according to its government work report this year.

Liu Yudong, president of Geely Technology Group, said: "As a pioneer in methanol vehicle technology, we are actively promoting the integration of the methanol and methanol vehicle industries. Through practical cooperation with upstream methanol fuel suppliers, we integrate production, storage, transportation, refueling and sales into one, focusing on building a full lifecycle service network for methanol vehicles.

"By expanding and strengthening the existing automotive industry, we are also constructing a winwin model that is beneficial for the promotion of methanol vehicles and socioeconomic development of Jinzhong."

According to data released by the China Association of Automobile Manufacturers, in 2023, China's automobile production and sales both exceeded 30 million units for the first time, with NEV production and sales volumes both surpassing 9 million units, ranking first in the world for nine consecutive years.

Liu Yan contributed to this story.

wangjinhui@chinadaily.com.cn