Huadu, Guangzhou - Rising world-class automotive industry cluster


The rapid rise of the automobile industry in Huadu has attracted the attention of many political, business and academic circles.
● Relying on the advantages of Dongfeng and Nissan two major automobile companies, Dongfeng Passenger Car Company has the potential of a world-class vehicle factory, and Huadu Automobile Industry is also well-established. ● A world-class Dongfeng Passenger Vehicle R&D Center makes Huadu The automotive industry stands on a higher technology platform and its development momentum is more abundant. ● A group of auto parts manufacturers invested by Fortune 500 companies have entered Huadu, making Huadu's auto industry more competitive with the global economy. The impact of globalization and the world automobile industry integration era has benefited from the sustained and rapid development of China's economy and the prosperous and active automobile consumption market. In a short span of 4 years, Huadu District of Guangzhou City --- an easy association with people, "is rich in flowers and agriculture. The urban suburbs of "by-products" are driven by the market economy and continue to interpret the legends of the industry. On the economic map of the Pearl River Delta, many automobiles and related companies have quickly gathered.

The world-class automobile plant settled into the 21st century. Fengshen Motor Co., which has settled in Huadu, has achieved high-speed growth. While creating the “Fengshen Myth” which shocked the Chinese and foreign auto circles, it also landed on this magical land in Huadu. Rooting, constantly flowering loose leaves, grow into big trees.
The creation of "Aeolus mythology" opened the curtain for the development of Huadu Automobile Industry. On June 9, 2003, Dongfeng Motor Co., one of China's three major auto companies, and Nissan Motor Co., one of the Japanese auto giants, carried out comprehensive strategic cooperation to jointly establish the largest joint venture in the Chinese auto industry—Dongfeng Motor Co., Ltd. : The registered capital of the company is 16.7 billion yuan, and each party holds 50% of the shares.
Seven days later, on June 16, Dongfeng Motor Co., Ltd. passenger vehicle company was announced. The company is based on "Fengshen Company" and locates Huadu, which is an important part of Dongfeng Motor Co., Ltd.'s most promising potential. It has advanced technology and technical equipment and world-class management processes. Its two subsidiary factories are located in Huadu, Guangzhou. And Xiangfan, Hubei, but its management center, main production position and R&D center are located in Huadu, Guangzhou.
In May 2004, the Guangzhou Huadu new plant of Dongfeng Motor Co., Ltd., a passenger vehicle company established less than a year ago, was officially completed and began production of the “Nissan” brand passenger vehicle for the Chinese market. With an annual production capacity of 150,000 vehicles and plans to have more than 600,000 vehicle manufacturers in 2007, the company will show its potential for a world-class vehicle factory.
In fact, due to the background of Dongfeng and Nissan, the passenger car company of Dongfeng Motor Co., Ltd., which has settled in Huadu, appears to have the conditions and strength of a world-class vehicle manufacturer. In the eyes of experts and scholars who study the regional economy, this world-class vehicle factory is not only the foundation for the development of the Huadu automobile industry, but also the leader of Huadu Automobile Industry Cluster.
The world-class R&D center took root On March 24, 2004, Dongfeng Motor Co., Ltd. officially established a passenger vehicle R&D center in Huadu. This R&D center with an area of ​​200,000 square meters and an investment of 330 million yuan is not only the independent R&D institution of Dongfeng Motor Co., Ltd., but also the third overseas R&D center established by Nissan outside of the local area.
Nissan Co., Ltd., which has strong R&D strength and ranks among the top three automakers in Japan, has always regarded R&D as an important part of its life. For overseas joint ventures, it always adheres to the principle of “no holding, no R&D center”. This "Nissan" breaks the convention and sets up an R&D center in Dongfeng Motor Co., Ltd., which has a half equity stake. This shows that it is fully optimistic about the development prospects of the Chinese automobile market and the Huadu automobile industry.
According to the plan, after the establishment of the Dongfeng Passenger Vehicle R&D Center, it will gradually develop the research and development capabilities of vehicle body development, vehicle matching, and partial assembly, reaching the same level of technology as Nissan’s European and American R&D centers. This means that in the future, the automotive products of Chinese domestic companies will no longer be inferior to automobile powers such as the United States, Japan, Germany and France in terms of quality standards and technological content.
R&D capability is not only the core competitiveness of a company, but also the core competitiveness of an industrial cluster region. Huadu, as an emerging automobile industry cluster region in recent years in China, how to form leading advantages in technological innovation through the introduction of technologies, joint development, and other means is a key to its ability to fully exploit its advantages in late-stage development. The Dongfeng Passenger Vehicle R&D Center is rooted in Huadu, which is a strategic need for Nissan, a multinational company, to reconfigure its technology development resources worldwide. For the Chinese automobile industry, especially Huadu Automobile Industry, it is obviously as soon as possible. It is a great opportunity to master the key technologies of the car and comprehensively improve the core research and development capabilities.
Standing at the high starting point of having a world-class R&D center, the development of the Huadu automobile industry is full of stamina.
World-class supporting companies to join In the Chinese auto industry stage, Huadu automobile industry is occupying more and more space. Statistics from the Huadu District government departments indicate that the Huadu automobile industry currently accounts for 29%, 25% and 9.1% of the automotive market in Guangzhou, Guangdong and the country respectively. With the demonstration effect of world-class vehicle factories and world-class R&D centers, a group of world-class supporting enterprises are beginning to gather Huadu.
Among these supporting enterprises, there are 5 companies with the background of the world's top 500 companies, such as the Guangzhou Uni Stamping Co., Ltd. with investment of 39 million U.S. dollars, Guangzhou Wanbaojing Auto Parts Co., Ltd. with investment of 32.6 million U.S. dollars and Guangzhou Hitachi U.S. Co., Ltd. with investment of 30 million U.S. dollars. Xiya Auto Parts Co., Ltd. etc. As of August 2004, nearly 70 Chinese and foreign auto parts production companies have entered Huadu, and invested more than 2 billion yuan; in addition, there are a large number of auto sales, maintenance, and logistics companies. All this makes people more confident that Huadu will become a global auto parts production base in the future.
With the provincial government of Guangdong formally setting Huadu as the only automotive industry base in Guangdong Province in November 2003, Huadu has attracted more attention from Chinese and foreign auto industry investors. Nowadays, such scenes often appear in Huadu: as long as a piece of land is leveled out, a factory building will soon rise, and then a group of Chinese and foreign auto parts manufacturers will come to the scene. The "Matthew Effect" of investing in the auto industry has been continuously generated in Huadu, and has promoted the growth and maturity of Huadu Automotive Industry Cluster.
The completion of the world-class automobile plant, the world-class R&D center, and the joining of world-class supporting enterprises indicate that a world-class automobile industry cluster is rising in Huadu, Guangzhou. This is not only the dream of the Chinese auto industry, but also the new pursuit of the Pearl River Delta in creating traditional manufacturing brilliance.