The automotive electronics industry in many provinces is struggling to form large-scale industrial clusters, which is crucial for economic growth and technological advancement. Despite having individual electronic industrial parks, these regions lack the scale and integration seen in major cities like Beijing, Shanghai, and Dalian. This article delves into the challenges and potential solutions for developing a robust automotive electronics industry.
While many provinces have their own electronic industrial parks, they are often small and fragmented. For instance, Chengzhuan Hai Park hosts only 12 companies, which pales in comparison to the industrial parks in Beijing, Shanghai, and Dalian. This lack of scale hinders the formation of a cohesive industrial cluster.
The automotive electronics businesses in these provinces generally have limited intellectual property and small-scale operations. The industry is characterized by a short supply chain, weak R&D in new energy automotive electronics, and a lack of a fully formed industrial mechanism to promote growth.
According to FAW Group's '12 Five-Year Plan, the company aims to produce 5 million vehicles, with the highest market share in automotive electronics expected to reach 200 billion yuan. However, this ambitious target requires coordinated efforts between FAW Group and local R&D and production companies.
Cheng Zhuanhai emphasizes the need for government policies to support the automotive electronics industry. He suggests establishing a 'Jilin Automotive Electronics Industrial Park Construction Leading Group' to promote industrial development through business incubators and other initiatives.
Vice Minister Ma of the Provincial Industry and Information Technology Department highlights that developing the automotive electronics industry is crucial for the province's economic development. Supporting this industry can have a multiplier effect, benefiting not just the automotive sector but the entire economy.
Over the next decade, the province aims to build a well-known international and domestic first-class automotive electronics industry cluster. This will involve integrating domestic and international resources and aligning with national industrial policies.
The development of a robust automotive electronics industry cluster will provide core support for the province's auto industry, contributing significantly to China's overall automobile industry development.
The lack of large-scale industrial clusters in the automotive electronics industry is a significant challenge for many provinces. However, with coordinated efforts between government and industry, there is potential for substantial growth. By building robust industrial clusters and investing in R&D, provinces can not only boost their local economies but also contribute to the global automotive electronics market.
For more information on the global automotive electronics market, visit Allied Market Research and Mordor Intelligence.
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