Chongqing auto industry exhibition highlights China’s supply chain advantage

An automatic assembly line is pictured at a smart factory of Changan Auto in Chongqing, southwest China, Jan. 9, 2025. (Photo: Xinhua)

Industrial and supply chains, auto parts and intelligent and smart manufacturing are becoming new competitive advantages of China's automotive industry chain, industry players at the 32nd China-SAE Congress &Exhibition said.

Held in Southwest China's Chongqing Municipality from Tuesday through Friday, the event attracted more than 10,000 representatives from more than 30 countries and regions, according to the organizers. More than 210 auto companies attended the event.

From nuts and bolts to chips and power trains, exhibitors have put China's auto supply chain advantage and the latest new-energy vehicle (NEV) technology on full display.

"From small vehicles to big luxury cars, Chinese NEVs (in the EU market) are very competitively priced and the range of product portfolios is quite impressive. In terms of supply chains, you have all the materials you need and all are in China, which is a benefit for original equipment manufacturers (OEMs) in China," Tristan Neuburger, a manager with Germany-based APL GmbH, told the Global Times on Thursday.

"By applying smart manufacturing, such as analyzing plant data to ensure product quality, cost-saving methodologies can be established," Wang Jimin, a member of the board of Ningbo Jifeng Auto Parts Co, a supplier of car seats based in East China's Zhejiang Province, told reporters on the sidelines of the event.

Large volumes of data flow through "transparent" supply chains, and customers can inspect the data at will, Wang said.

Erman Tekkaya, a professor at the Technical University Dortmund of Germany, told the Global Times on the sidelines of the event that the power battery developed by Chinese electric vehicle company BYD is especially impressive.

"The Chinese engineers integrated the blade battery system, which is a cutting-edge new battery technology, into the structure of the car to achieve the dual purpose of energy saving and structure enhancing. Also, the battery system has very low heat generation and a long life," the professor said.

China is in the process of transforming its manufacturing capacity into a smart technology-powered system, banking on an innovation-driven development strategy.

China is home to more than 500,000 high-tech enterprises and leads the world with more than 40 percent of the global "Lighthouse Factories," which represent the leading edge of smart manufacturing and digitalization, a Chinese Foreign Ministry spokesperson said on October 14.

According to the World Robotics 2025 report released by the International Federation of Robotics, the operational stock of industrial robots in China exceeded 2 million units in 2024, leading the world.

"In Europe, we have a very traditional supply chain that is still not fully transformed," Lukas Walter, Austria-based AVL Group's chief operation officer, told the Global Times on the sidelines of the event.

"One of the solutions is for European OEMs to also use global supply chains, including Chinese supply chains, to optimize both the technologies as well as the cost of the vehicles," Walter said.

China is the world's largest auto market, and by steadfastly fostering growth in the NEV sector through the continuous support of a total of five Five-Year Plans, the country now leads the world in NEV production and sales.

In 2024, China's NEV output and sales each exceeded 12 million, a landmark achievement, while overall car output and sales topped 31 million, according to the China Association of Automobile Manufacturers.

As Chinese and European automakers are currently engaging in a deeper level of cooperation in both markets through investment as well as research and development, the scope of cooperation is expanding, according to industry experts attending the event.

Neuburger, the manager of the German testing and certification services provider, said that his company has been enhancing exposure in China through attending auto exhibitions in different Chinese cities. "The Chinese companies are also expanding in Germany and Europe as well, and we can also participate there and provide our services to Chinese OEMs."

"As a company whose connection with China goes back 99 years, it is extremely important for AVL that we identify and live with the trends in China and support the trends and our customers in China - to see that we are here and also to participate," said Walter, noting that AVL works with Chinese OEMs at four locations on engineering, from software development and vehicle development to powertrain development.

"As Chinese manufacturers explore other markets, like the US or Europe, and navigate different consumer expectations of vehicle drivability and adapt their technology accordingly, AVL is well-positioned with its long association with China while at the same time being a Europe-headquartered company," Walter said. The Chinese market is very important for us, the executive said.