China-Europe automotive industry chain deepens integration and cooperation, from parts to complete vehicles Gestamp | Chinese automotive market | Auto parts
SHENYANG, July 4 (Xinhua) -- Looking down at the Brilliance BMW Tiexi plant in Shenyang, Liaoning Province, rows of brand-new pure electric vehicles are ready to be delivered to users at home and abroad. Looking around the factory, dozens of auto parts suppliers are dotted around the plant, and the auto parts produced here will be shipped to the world along with BMW vehicles.
In the body shop of BMW Brilliance Shenyang Tiexi Plant, a robot arm is welding the car body. Photo by reporter Yang Qing
The automobile manufacturing industry is one of the industries with the longest value chain and the widest coverage in the world. Inside each vehicle, large and small parts drive countless companies and factories to operate at high speed. In China, many European automobile companies, represented by BMW, have been deeply involved for decades. The huge Chinese automobile market not only attracts them to continue to increase investment and expand production, but also supporting suppliers have set up factories in China, and the China-Europe automobile industry chain continues to deepen integration.
Across the street from the Tiexi plant of BMW Brilliance, the Shenyang plant of Spain's Gestamp Group is bustling with activity. Batches of body and chassis parts are rolling off the production line and then shipped to the final assembly workshops of BMW Brilliance and several surrounding automakers.
Ren Tingfu, general manager of Gestamp Shenyang Plant, said that since the company settled in Shenyang in 2012, its production capacity has been continuously increasing, and the cumulative investment in more than ten years has exceeded tens of billions of yuan. "In order to meet the needs of customers to increase production capacity, we invested in the expansion of the automotive component project in 2023. Now the third phase of the project has been successfully completed and will be put into use soon."
As a world-leading auto parts supplier, Gestamp entered China in 2007 and now has 14 factories, 2 R&D centers and more than 5,000 employees in China. Gestamp Asia Pacific CEO Anton Lo told reporters that China's auto market is large and full of innovative vitality, and firm investment and cooperation in China is the key to Gestamp's global strategy.
"As manufacturing capacity moves into China, we are continuing to introduce European body, chassis and battery box technologies and products into China to provide better services to our OEM customers producing in China," said Luo Anton.
In recent years, the Chinese auto market has accelerated its transformation to new energy, driving many European automakers to invest and expand production in China to compete in the "new track". In April this year, the BMW Group announced an increase of 20 billion yuan in investment in China to prepare for the localization of BMW's "new generation" models in 2026; Volkswagen Group established its largest R&D center in China outside of its German headquarters, focusing on the R&D of intelligent connected vehicles...
Gestamp, which has been deeply involved in the Chinese market for many years, has also "bet" on new energy vehicles as a new growth point. It is reported that Gestamp is increasing its investment in the research and development of new technologies and new applications to meet the needs of Chinese OEMs for electrification, lightweighting and environmental protection.
Luo Antong said that the Chinese automobile market is developing rapidly towards electrification, intelligence and sharing, which has brought new transformation opportunities to Gestamp. "We will be more determined to invest in China, cooperate in China, and work for China."
Visitors visit the Tesla booth at the 2024 World Intelligent Industry Expo held in Tianjin. Photo by reporter Li Ran
Foreign investment continues to increase in China's new energy vehicle industry chain, stemming from rising customer orders and market demand. According to data from the China Association of Automobile Manufacturers, from January to May 2024, China's production and sales of new energy vehicles reached 3.926 million and 3.895 million respectively, up 30.7% and 32.5% year-on-year, respectively, maintaining a relatively fast growth rate.
In Shenyang, the BMW sixth-generation power battery project with a total investment of RMB 10 billion was capped last year, and the main structure was completed; in 2023, the ZF New Energy Vehicle Parts Industrial Park with a total investment of RMB 2.198 billion started construction in Shenyang's Hunnan District; German auto parts supplier Bosch expanded its new energy vehicle core components and autonomous driving R&D and manufacturing base in Suzhou, which is expected to be put into use in the second half of this year. More and more European auto companies and suppliers are expanding their local supply chain layout in China and integrating into the wave of innovative development of new energy vehicles.
"China is the world's largest automobile market and an innovation center. Improving the competitiveness of automobile parts companies in China will greatly enhance their global competitiveness." Benjamin Krieger, Secretary General of the European Association of Automotive Parts Manufacturers, pointed out that constructive exchanges are crucial for the development of sustainable trade relations and future investments in the China-Europe automotive industry.
Driven by the rapidly growing market demand, the competitiveness of China's new energy vehicle industry has been continuously improved. In recent years, more Chinese automakers and supply chain companies have begun to invest in setting up factories and conducting technical cooperation in Europe to jointly expand the "cake" of the new energy vehicle field.
On the evening of April 26, the signing ceremony for deepening strategic cooperation between Shenyang City, Liaoning Province and BMW Group was held in Shenyang. Photo by reporter Pan Yulong
Recently, China's Chery Automobile Company and Spain's Ebro Company established a joint venture in the Barcelona Free Trade Zone to jointly develop new electric vehicle products; BYD announced that it would build a new energy vehicle production base in Hungary to help the local area build a green "ecosystem" and promote the green transformation of Europe's energy structure.
At the same time, in the field of power batteries, the core components of electric vehicles, Chinese companies are also willing to share their technological achievements with the world. At the 15th Annual Meeting of the New Champions of the World Economic Forum held in Dalian recently, Zeng Yuqun, chairman of power battery company CATL, said that the company is currently focusing on materials, production, technology upgrades and innovations, recycling rates, etc., and is committed to providing high-quality batteries to global users to ensure green travel.
"CATL will provide technology licensing services to European and American automobile manufacturers and battery manufacturers to help them start battery production bases to cope with climate change and promote industrial transformation," said Zeng Yuqun.
"In the 1980s, Volkswagen Group and SAIC Group jointly established Shanghai Volkswagen Automotive Co., Ltd., which brought development opportunities to China's automobile industry." Cao Xudong, CEO of Momenta Technology Co., Ltd., which focuses on the research and development of autonomous driving, said that today, the development achievements of China's new energy vehicles have benefited Europe and many countries in the world. "This is the win-win situation brought by cooperation."
