DEVELOPMENT ADVANTAGES AND PROSPECTS

(I)Development Advantages

(II)Prospect of the Auto Industry in Beijing

(III)Preferential Policies

RESOURCE IN DEVELOPMENT SPACE

A.Beijing Economic-Technological Development Area

B.Beijing Auto City

C.Beijing Opto-Mechatronics Park

D.Beijing International Garden of Automotive Electronics

E.Beijing Xinggu Industrial Development Zone

F.Beijing Yanqi Industrial Development Zone

G.Beijing Miyun Industrial Development Zone

PROJECT RESOURCE

Auto-manufacturing industry

Prospect of the Auto Industry in Beijing

In the 21st century, Beijing will vigorously promote the formation of an industrial pattern with high- and new-technology industries taking the lead, modern manufacturing industries providing supporting and modern service industries developing in an all-round way. Meanwhile, Beijing will encourage the development of water saving, energy-saving and low-pollution industries to develop circular economy, thus achieving the healthy, rapid and sustainable development of the economy of the capital city.
The auto industry plays a leading role in the modern manufacturing sector of Beijing. The production and sales of automobiles in Beijing reached 350,000 vehicles in 2003, and the output value of the auto manufacturing industry reached 38.5 billion yuan RMB. Both the turnout and the sales income of entire cars rank the fifth in the industry nationwide. Enterprises manufacturing passenger cars represented by sedan and cross-country truck, commercial cars represented by light truck and heavy-duty truck, and components and parts have experienced all-round development. It is expected that by 2008 the auto production capacity in Beijing will reach above 1,500,000 vehicles, and the value of total output will reach 180 billion yuan RMB.
Industrial Structure
Vigorously foster an industrial system with integrated development of passenger cars, commercial cars, specialty cars and accessory components and parts. Preference and priority will be given to support entire car projects of sedans, SUV, light trucks, heavy-duty trucks, motor coaches, specialty cars etc that play a leading role in the development of the auto industry in Beijing, and army vehicle and refitted vehicle projects that play a promoting role in the modernization drive of the army. Support will be given to key projects of components and parts that play a critical role in improving the industrial chain, rely on the advantageous industries of Beijing, and have core technology to cater the multimedia supporting and to enter the international procurement chains of transnational corporations. Support will also be given to the technological renovation of urban transportation facilities such as public traffic passenger cars to drive the upgrading of the overall level of traffic and transportation facility manufacturing industries.
Supported by the vast market of Beijing, foster good consumption environment and cultivate good auto culture;
Improve the logistic environment and the IT environment, speed up construction of logistic and information channels, and incubate intermediary agencies in logistic and information services so as to form an auto industry cluster in the region of Beijing with low transaction cost, with fast flowing of elements of production and various information, having strong correlation with advantageous industries, and with Beijing characteristics, thus to achieve sustainable development of Beijing’s auto industry.
Spatial Distribution
Based on the “Two axes, two strips and multi-centers” development pattern of the City, shape the “East Region Development Strip” originating in Huairou and Miyun in the north and focusing in Shunyi, Tongzhou and Yizhuang. Currently the existing auto industrial enterprises of Beijing are mainly distributed in the East Part of the city, and an auto manufacturing base pattern focusing on the East Part development strip is taking shape. Meanwhile, industries that have a promoting function to the auto industry such as electronics and Photo-Electro-Mechanical integration are also developing and progressing in the East Part Development Strip.

With a good foundation of development of entire cars industry as well as compenents and cars industry, Yizhuang, Shunyi, Tongzhou, Pinggu, Huairou and Miyun are key development areas for the auto industry. Industrial clustering is an important route to foster and upgrade the auto industry, and an organic integration between the industry and the region. Entire car manufacturing projects including Beijing Hyundai Auto Co. Ltd. Project, Beijing Jeep Project and Benz Car Project, and enterprises manufacturing entire cars and components and parts, such as Mobis, Johnson and Fuyao are all located in this region, and an industrial cluster is preliminarily taking shape.

These six districts have obvious location advantages with convenient traffic and complete municipal infrastructures such as water, electric power, heating power and communication, and the engineering geologic conditions meet the requirements of general industrial and civilian construction.
Inventory Resources
Under the guideline of “absorbing the increment, activating the inventory, making adjustment in the course of development and ultimately establishing the strategic system for sustainable development of Beijing’s auto industry”, make use of the resources of entire car manufacture development along with the auto industry foundation of Beijing, and invite foreign auto and components and parts manufacturing enterprises to invest in building factories in Beijing. Make effective use of the existing resources of Beijing to optimize the auto and components and parts production setup of Beijing and boost the technological level.
Enterprises in some industries have complete inventory of land, factory buildings and public utilities, which are available resources for the development of the auto industry.
Foreseeing the Future
By the year 2008, Beijing’s auto industry will have formed an industrial cluster predominated by leading entire car enterprises, and will develop the components and parts supply platform supportive of multi-systems to realize professional and low cost conglomeration within the region. In the meanwhile, improvement will be made in such fields as auto marketing, maintenance, fittings, automobile financing and insurance. The logistic environment will be improved, policies will be further normalized, and a competitive auto industry cluster and a relatively integrated auto industrial chain will be formed. Beijing’s auto industry enjoys a promising future.