Automotive Industry

It is estimated that TEDA will be constructed into the largest automotive manufacturing base of China. The major advantages of TEDA include:

1.Competitive Edge of TEDA

With a favorable geographic location, Tianjin, the economic development center of North China, can inject great momentum to the markets in Northeast China and Central Plains.

Compared with the Yangtze River Delta and Pearl River Delta, the competitive edge in cost and potential for the manufacturing industry makes Tianjin one of the most important auto production bases in China.

The Tianjin Port is the largest port in the Beijing-Tianjin-Hebei Province region and serves as an important access for the import and export of whole cars and parts in North China.

The region where TEDA is located follows the development momentum of the international auto industry and is one of the key auto industrial bases encouraged by the central government.

2.Current situation of component suppliers in Tianjin and surrounding area

Full range of products; large amount of companies but many of them are smaller size;

Focusing the manufacturing business;

3 kinds of investment: foreign investment, state-owned, private investment

3 models of supply chain:

1) Japan- Korea system:"Bidirectional Monopolies"model

2) FAW system: "Vertical Integration"model

3) Private system;Dissociated state

3.Tianjin is planned as a key point in the National Strategy of Automotive Industry Development

The integration of Tianjin Automotive Group and First Automotive Group has made Tianjin one of the 3 core points of developing automotive industry under the direct support of the Central Government. This implies that the approval of setting up new auto factories or new types automotives projects in Tianjin will be supported by the related governmental authorities.

4.Tianjin Port, the largest ocean port in North China, also the largest import port of automotives in China

Year 2002 sees 43,420 units of cars importing and selling through Tianjin Bonded Area, occupying 61.7% of the total amount of China, keeping its leading position in this country. Tianjin is the largest automotives import port of China.

5.Automotive Industry, the pillar industry of Tianjin

- More than 200 auto industrial enterprises operating in Tianjin. The supply chain of auto industry is getting more and more completed.

- Among them:9 automotives manufacturing companies

170 components suppliers

6.One of the pointed manufacturing base for cars and mini-cars

- Top 1 of mini-cars output

- Top 1 of 1.0L,1.3L engines output

7.The comprehensive manufacturing output of Tianjin is 230,000 annually.

8.Tianjin Automotive Group cooperated with Toyota from Japan to set up a joint venture ---- Tianjin

Toyota Automotive Co.,Ltd. in year 2000. Tianjin Automotive Group joined hands with First Automotive Group and started the Giant -Giant Cooperation in year 2002.

9.One of the largest manufacturing base of economic cars in China.

10.Several research organizations such as China Automotive Technology Development Center locate in Tianjin.

11.Complete logistical system and distribution system

Tianjin is the largest automotive logistical center of North China.

Its logistical network spreads into the 11 provinces in North China.

Shanghai Volkswagen Auto Co. has set up its Northern China Distribution Base in TEDA.

12.Beijing & Tianjin Area, the fastest growing market of automotives in China.

Tianjin with its surrounding areas is one of the largest auto consumption areas in China. For example, the auto sales volume in Beijing occupies nearly 1/10 of the national volume; number of private cars in Tianjin is among the top areas in China, the No.4 exactly.

TEDA will construct the Suppliers' Platform for Toyota and Hyundai.

Automotive Industry in TEDA

1.TEDA will become the Automotive Factory of China

Tianjin FAW TOYOTA Co. manufactures Vios, Corolla, Crown and other types of cars here with total investment amounting to 1 billion USD.
Another automotive project will be relocated in TEDA
Sanfeng Passenger Car of Tianjin Automotive Group is discussing a joint venture project
Xingma Special Automotive Plant project
In 2009 TEDA had attained a total industrial output value of 81.5 billion yuan, which accounts for 19.4% of the total of TEDA.

In 2010 TEDA had attained a total industrial output value of 103.47 billion yuan, which accounts for 20.3% of the total of TEDA.

2.Logistical distribution: Shanghai Volkswagon Northern China Distribution Base; Toyota Logistic

3.Technical Strength and R&D

There are two domestic-funded auto research institutes, four foreign-funded independent research institutes, and one non-independent corporate research institute.
Enterprises have been encouraged to play a leading role in automotive technical innovation. Through consistent innovation, enterprises have obtained many advanced scientific achievements and mastered core technologies for 32-bit microtreatment, vehicle shock absorption and denoising, catalytic purification of tail exhaust, pure electric vehicles, hybrid vehicles, etc.
Research institutes of TEDA have participated in 25 scientific and technological programs of the Ministry of Science and Technology, National Development and Reform Commission, Tianjin Municipal Science and Technology Commission, Tianjin Municipal Commission of Development and Reform, etc., developed many significant technologies, and cultivated a group of enterprises and brands which have independent IPRs.

4.Chain of auto parts industry maturing

Among the 100 auto producers in TEDA, four are whole car manufacturers and 106 are parts & accessories providers.
Over half of them are level-one providers. One third of the parts & accessories projects are high value-added ones. TEDA has developed a complete auto parts & accessories chain, including engines, auto electronics, auto parts, auto moulds, tires, painting, etc.
Tianjin Qingyuan Electric Vehicle Co., Ltd., China's first qualified new energy vehicle producer, has been set up in TEDA.
Represented by Rainbow Hills and Toyotsu, the auto industrial chain that covers auto disassembly and auto waste recycle has taken shape.
A group of prestigious enterprises engaged in auto R&D and designing have settled down in TEDA, e.g. Toyoda Giken, Panasonic Automotive Systems Development, Fujitsu Ten, John Deere, etc., strengthening the regional R&D capacity.

5.Industrial Competitiveness

A national auto and parts export base
One of the first national exemplary industrial bases for new industrialization (auto industry)
Qingyuan electric vehicle industrialization exemplary base and a low carbon economy exemplary zone
The center of the circum-Bohai whole car and parts industrial clusters
A prominent auto industrial center of Tianjin
China's highest industrial output value in the auto electronics industry
Well-linked whole care and accessory manufacture

6.Development Plan

Production Capacity

The year of 2010: 500,000 cars per year
The year of 2015: one million to 1.2 million cars per year

Industrial Output Value

In 2010 TEDA's auto industry will see a total industrial output value of 100 billion yuan, which is 18.2% of the total of TEDA, with 70 billion yuan from whole cars, and 30 billion yuan from parts & accessories.
In 2015 the industry will obtain a total industrial output value of 250 billion yuan, which is 22.7% of the total of TEDA, with 130 billion yuan from whole cars and 120 billon yuan from parts & accessories .

Main Products

Whole cars involve low, middle and high-end cars, SUVs, and special vehicles. 383,700 cars were produced in 2009.
Parts & accessaries consist of in-car satellite navigation system, auto stereo system, auto wiring harness, transmission, engine control units (ECU), seats, etc., all of which form a complete parts & accessories system.

Leading Companies

Whole Car Manufacturers: FAW Toyota Motor, Great Wall Motor, Xingma Automobile, and Qingyuan Electric Vehicle
Parts & accessories Providers: Fujitsu Ten, DENSO Electronics, Yazaki Automotive Parts, Intex Auto Parts, Continental Automotive Systems, Aisin Body Parts, AW Automatic Transmission, and Jin Zhu Wiring Systems

Innovation Capacity

In 2010 there are ten engineering technological centers, corporate technical centers or R&D centers.
In 2015 the number of corporate R&D centers will grow to 20.

Key Industrial Sectors

Consolidating one leading sector-sedans
Fostering one base-the auto parts & accessories industrial base
Making two breakthroughs-heavy-duty trucks and large passenger cars
Improving on three levels-parts & accessories manufacture, R&D and innovation, vehicle services
Focusing on one area-new energy vehicles

Auto Parts Manufacturing Business in TEDA