The auto and parts consumption market in central and western China has great potential

The Shanghai GM Wuhan branch, which was laid in June this year with a total investment of 7 billion yuan and covers an area of 2.3 square kilometers, has not yet been completed, that is, it has formed a sizeable auto and parts supporting industry chain.

The central and western regions radiated by Wuhan not only have a vast market with a total population of 450 million, but also the regional economic growth rate is higher than the national average level, and the consumer market of automobiles and parts has huge potential. Ye Yongming, general manager of Shanghai General Motors, said that the first 15 suppliers to invest in Wuhan are long-term partners and core suppliers of Shanghai General Motors, including many of the world's top 500 enterprises.

In recent years, China has gradually released the restrictions on the share ratio of auto parts enterprises, and it has become a trend for multinational auto parts companies to set up wholly-owned enterprises in China. According to reports, Delphi, Japan's Denso, Sumitomo, Dana, France's Valeo, Japan's Fujitsu Electronics and other parts multinational giants compete to expand investment in China.

Yu Xinguo, director of Wuhan Economic and Information Technology Commission, said: The prospects of domestic and overseas businesses for the development of China's auto parts industry lie in the business opportunities brought by the upgrading of China's auto parts products and the transformation of technology.

Ye Yongming said that the process equipment and international high standard environmental protection facilities of Shanghai GM Wuhan branch, and the construction of a green environmental protection factory integrating precision, agility, flexibility and modularity will ensure that Shanghai GM Wuhan plant will enter the ranks of the world's top automobile manufacturers.

　　目前，全球排名前100位的汽车零部件供应商中有70％已来华开展业务，在中国大陆进行汽车零部件生产的外资企业超过1200家。

Experts believe that the Chinese auto market has at least 10-20 years of high-speed growth, but the auto parts service and after-sales service market will be a long-term, stable and huge market.

China Association of Automobile Manufacturers recently released information in Wuhan shows that in 2011, China's auto parts sales output value has exceeded 2 trillion yuan, the next few years will remain more than 20% growth. It is expected that by 2015, the output value of China's auto parts industry will reach 2.5 trillion yuan.

Wuhan, a thoroughfare of nine provinces, is located in the hinterland of Central China and is an important land and water transportation hub of the country. The central and western regions radiated have a vast market with a total population of 450 million.

Ruan Chengfa, secretary of the Wuhan Municipal Party Committee, said that after the completion of the Wuhan base of Shanghai General, plus the upcoming Dongfeng Honda Plant and the French Citroen Shenlong Plant, which will be put into production next year, Wuhan will have the top manufacturing plants for the three series of models of the United States, Japan and France, and the models are all over the economy to high-end models.