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Automobile industry of Liuzhou Rises Abruptly
 
Date:2015-12-07 By:Xin HuaShe Source:Liuzhou Daily

Auto output of Guangxi Liuzhou over the first 11 months of this year reached 2.063 million, accounting for nearly 10% of the country’s total. The growth rate was as high as 8.66%. At the moment, several new vehicle models are driving the strong growth of Liuzhou’s auto industry.

The Baojun 560 entered the market in July this year and 110 thousand vehicles were sold in over 4 months. Its sales of single month were more than 30 thousand vehicles in October and November respectively.

Over the first 11 months of this year, the SGMW has sold 1.802 million vehicles, an increase of 9.87% year on year. The sales of November broke the record of 200,000 and reached 200,428 resulting from the driving of the Baojun 560.

The sales of the Dongfeng Liuzhou Motor Co., Ltd. also rebounded after decline. The Fengxing S500 entered the market on November 8th and more than 10 thousand vehicles were sold in the first month.

“It is estimated that the auto output of Liuzhou in this year would be 2.3 million vehicles, an increase of nearly 10%.” said Ren Wengang, deputy director of Liuzhou Municipal Industry and Information Committee. At present, one of ten vehicles in China was made in Liuzhou.

The construction of the SGMW’s new factory in Bekasi, West Java, Indonesia was in full swing in August this year. This 700 million dollar project would be brought into production in the second half of 2017 with a production capacity of 150 thousand whole vehicles a year. Driven by the SGMW’s “Go abroad” strategy and the “Belt and Road” initiative, many auto parts manufacturing enterprises in Liuzhou including Guangxi Automobile Group Co., Ltd. are grouping and heading for global. Those enterprises will also set up factories in Indonesia.

After the SGMW’s five years efforts, China’s Proposal on the Standards for Noise Emitted by Accelerating Passenger Vehicles has been written in the Regulations of Economic Commission of Europe (ECE) this year. This is the first time that a Chinese enterprise rewrites the standards for European vehicles.

From 110 thousand vehicles in 2000 to 2.3 million vehicles in 2015, the auto output of Liuzhou has increased by 20 times. Why did the automobile industry of Liuzhou have such strong growth? Secretary of Liuzhou Municipal CPC Committee, Zheng Junkang said, the key is to insist on innovation and upgrading, transferring from “made in Liuzhou” to “wisdom in Liuzhou”.

The research team consisted of more than 2000 people supports the SGMW’s innovation in its products. There are more than 100 ongoing projects on whole vehicle development. High efficient product development enables the SGMW to quickly respond to the needs of the market.

Formerly, the Dongfeng Liuzhou Motor Co., Ltd. mainly produced medium and heavy duty trucks. From 2002, however, engineers of the Dongfeng Liuzhou Motor Co., Ltd. started their independent development in passenger cars. Passenger cars of the Dongfeng Liuzhou Motor Co., Ltd. successfully made it into market in 2007. More and more new products including the Jingyi X5, the Jingyi S50 and Fengxing S500 keep emerging. The Dongfeng Liuzhou Motor Co., Ltd. targeted at the fastest growing markets --- the MPV and the SUV markets, started independent innovation and structural adjustment and finally accomplished rapid growth. Its annual output of passenger cars rapidly grew from over 20 thousand in 2009 to 250 thousand in 2014.

Driven by the whole vehicle enterprises, a relatively complete supporting industry chain of auto parts has been formed in Liuzhou. 50% of the auto parts of the SGMW and 40% of the auto parts of the Dongfeng Liuzhou Motor Co., Ltd. are provided by local enterprises. Some auto parts manufacturing enterprises which are renowned both at home and abroad, including the United Automotive Electronic Systems Co., Ltd., the Fuyao Glass Industry Group Co., Ltd. and the Shandong Linglong Tire Co., Ltd., have set up production bases in Liuzhou one after another. Last year, the output value of automobile industry of Liuzhou has broken the record of two hundred billion yuan.

 

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