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The "Automotive Process and Equipment Technology Seminar" recently took place in Guilin, drawing over 100 experts, scholars, domestic auto equipment suppliers, and industry representatives. The event served as a platform for in-depth discussions on the development of China’s automotive equipment technology and its future direction.
Participants were encouraged by the progress made by domestic suppliers in recent years. These companies have significantly improved their innovation capabilities and service quality, allowing them to compete effectively with international players. Some areas that were once dominated by foreign firms are now being challenged by Chinese suppliers, marking a positive shift in the industry landscape.
Experts emphasized that innovation in the automotive sector heavily relies on advancements in manufacturing technology and equipment processes. One key trend is the move toward product and production customization. As consumer expectations rise, traditional production methods are no longer sufficient. This has led to a growing need for modernization and upgrades in existing equipment.
Looking at global examples, it's clear that the growth of the automotive industry is closely tied to the development of its supporting manufacturing technologies. Countries with strong automotive sectors also have well-developed equipment industries, which play a crucial role in driving innovation and efficiency.
Zhang Xiaoji, vice president of the China Federation of Machinery Industry, highlighted that China's annual car production is expected to reach 10 million units in 2010, surpassing 20 million by 2020. This massive growth underscores the importance of an independent R&D system for automotive equipment. He stressed that advanced manufacturing technology is essential for China to transition from a major automobile producer to a true industry leader.
Domestic suppliers have been making significant strides, especially with the growth of China's own brand automotive industry. Through continuous efforts, they've achieved remarkable progress. However, with rising competition and shrinking profit margins, there's an increasing demand for cost-effective solutions. Many automakers now rely on low-cost equipment to maintain competitiveness.
Suppliers like the Fourth and Fifth Design Institutes have focused on absorbing and innovating upon imported technologies, leading to rapid industry growth. They have successfully captured market shares in commercial vehicles, joint ventures, and independent brands, offering products at much lower prices than foreign competitors.
A notable example is the coating and assembly line for Shanghai GM Wuling, designed by the Fourth Design Institute. This project was approved by General Motors, proving that domestic suppliers can match international standards. The U.S. automaker even sent representatives worldwide to learn from the project, and the institute was included in GM's global procurement network.
Chen Quan, general manager of China Automotive Industry Engineering Co., Ltd., praised the rapid development of domestic suppliers. Through talent recruitment and innovation, they have mastered high-volume production technologies and achieved breakthroughs in complex processes like workshop layout, clean control, and airflow balance.
Good customer service is another advantage for domestic suppliers. Unlike foreign counterparts, they often operate during holidays and work overnight to maintain production lines without disrupting operations. Their support during the initial stages of projects is also a big plus.
While maintaining a strong presence domestically, some suppliers are now expanding globally. The Fourth and Fifth Design Institutes formed the China Automotive Industry Engineering Corporation to strengthen their international presence. They are currently bidding for projects in India and Sudan, and working on a commercial vehicle line for Dongfeng Motor in Ukraine.
Despite these achievements, the road ahead remains challenging. Foreign competitors still hold significant influence, and domestic suppliers need strong backing from Chinese automakers to grow and gain recognition abroad. Without this support, it would be difficult to establish a solid foothold in overseas markets.
October 11, 2025