Jilin to zero in on auto industry development
By Zhao Shijun (China Daily)
Updated: 2004-06-07 10:14

Authorities in Northeast China's Jilin Province will give top priority to the development of the automobile industry, given its importance to the revitalization of the area's traditional industrial bases.

In this year's government work report, Governor Hong Hu released a development strategy for the auto sector.

He said the strategy aims to turn the province into a competitive automobile production base in China as well as the world, through consolidating existing development and driving the growth of the spare parts, automobile sales and service sectors.

To step up the development of the auto industry, leaders from the provincial government and the Jilin Committee of the Communist Party of China have formed a team to co-ordinate every possible support mechanism for the industry.

According to Li Jinbin, vice-governor of Jilin Province, in recent years, the provincial government has arranged many investment promotion activities overseas, leading local business delegates to seek co-operative partners.

Famous automakers and spare parts producers such as Volkswagen, Toyota, Hella and Siemens have set up joint ventures in Jilin, further cementing the province's leading position in China's auto industry.

Development

Jilin's capital city of Changchun is the cradle of China's automobile industry.

Since 1957 when the Changchun-based First Automotive Works (FAW) produced the first truck in China, the province has developed into China's largest and most competitive auto production base, with its product line ranging from heavy and medium-duty trucks to passenger cars and mini-vans.

At present, the province has two enterprises engaged in the production of complete automobiles, 22 automobile assembly firms and 19 spare parts manufacturers, According to Li.

Last year, the province's automakers realized a sales volume of 641,000 automobiles. And the FAW, with its plants in Changchun and throughout China, sold a total of 902,000 vehicles, accounting for 21 per cent of the domestic market share.

In the same year, Jilin's automobile firms realized an industrial output value of 125 billion yuan (US$15.1 billion), accounting for 51.5 per cent of the province's total.

They had a profit of 9.74 billion yuan (US$1.18 billion), making up 62 per cent of Jilin's total, showing the sector has become the most important pillar of Jilin's economy.

Initial stage

However, Li said, the province still has a long way to go to become a world famous automobile production base.

Compared with some developed countries, the province's auto industry is still in its initial stage in terms of research and development capacity, marketing channels and management levels.

In addition, automobiles produced in Jilin, as well as other places in China, still trail behind some overseas-made products for reliability, comfort and adaptability.

To overcome all the shortcomings, the province's authorities require the automakers to further enhance efforts in enterprise restructuring, market positioning and technical innovation.

They are also encouraging enterprises to strengthen co-operation with overseas counterparts, allowing them to borrow more advanced technologies and management experience from their partners.

Governments at different levels will also work to create an effective platform for exchanges between domestic and overseas businesses.

Auto show

The China Changchun International Auto Show, one of the three major auto shows in China, is part of their efforts.

The Changchun show, initiated in 1999, has welcomed an increasing number of participants in the three events it has held - in 1999, 2001 and 2003, showing it has become a successful and influential event in China's auto industry.

During the previous three sessions, a great number of contracts were signed between automakers and auto dealers, and between domestic and overseas firms.

The Fourth China Changchun International Auto Show is scheduled to be held on July 15.

With the theme of "Showing Automotive Technologies, Developing the Auto Market and Mapping out Strategies for the Future," this year's event will have exhibitions, conferences, trade talks and even car racing.

According to Zhu Yejing, mayor of Changchun, this year's event will be run on experience gained from famous international auto shows and be operated in a market-oriented manner.

He revealed that event organizers are collaborating with Messe Frankfurt, a famous German-based exhibition company, to upgrade the quality of the event.

"This year's auto show is expected to break all records associated with previous years," said the mayor, citing information provided by event organizers.

The exhibition area is predicted to reach 120,000 square metres, an increase of 20 per cent over the last session.

Also, the number of participating enterprises is expected to grow dramatically.

Almost all of the businesses which sent delegates to last year's event have confirmed their participation this year, and they all hope to display more automobile models.

In addition, Zhu said, some of the firms which failed to be present at the third auto show because of SARS, have expressed their strong interest in taking part in this year's event.