Three major automobile manufacturers in Chongqing including Changan Automobile, Seres, and Lifan Technology have released their auto sales data from January to November 2022. A significant year-on-year increase in cumulative sales of alternative fuel vehicles was observed: Changan Automobile increased by 140.51%, Seres by 235.54%, and Lifan by 2160.94%. Apart from that, the production of alternative fuel vehicles is surging. The proportion of alternative fuel vehicle production in Chongqing has increased from 1% to 15% in the past five years while that of intelligent connected vehicles (ICV) has also increased from 4% to 15%.

The significant increase in both production and sales is an outcome of Chongqing’s effort in utilizing technologies and the construction of a world-class intelligent connected and alternative fuel vehicle industry cluster. In the following content, we will see what measures are taken and how they managed to achieve that.

Regional Project

The Base Project of Intelligent Connected Alternative Fuel Vehicle and Intelligent Transportation Innovation in the Western (Chongqing) Science City started construction on December 11, 2022. The project includes building an integrated innovation service platform for research and standard development regarding alternative fuel and intelligent connected vehicle-related technology.

workshop of Changan in Liangjiang New Area

A list of initiatives has recently taken place across the city. Yongchuan District has implemented commercial demonstration operation of intelligent network-linked vehicles and unmanned commercial demonstration operation of full vehicles, making itself the first of its kind nationwide. Liangjiang New Area has issued a leading action plan to build an intelligent connected alternative fuel vehicle industry cluster. Nanchuan District has introduced enterprises that produce parts and components supporting intelligent connected alternative fuel vehicles.

Chongqing has formed an advantageous industry cluster with major manufacturers like Changan as the leader, more than ten vehicle enterprises as the backbone, and thousands of supporting enterprises as the support and has a local supporting rate of 70%.

Multipronged Development

New technologies, applications, and ideas for intelligent networked alternative fuel vehicles keep popping up, and Chongqing automotive industry is always ready. Local manufacturers are seen in many subfields of the future technology route of the car. On November 30, Changan Automobile launched Force, the latest intelligent connected alternative fuel vehicle technology program. Force is well received on the A-share market for its uniqueness of being a combination of leading technologies including an intelligent range extender and efficient electric drive.

Deep Blue SL03

Besides, Changan Automobile also focuses on hydrogen fuel technology and recently launched its hit product, the hydrogen-electric version of Deep Blue SL03. Seres focuses on the path of both extended-range and pure electric, relying on its technological advantages to optimize its products comprehensively. Lifan, on the other hand, centers on batter-swapping and has been doing well since restarting its automotive business last year. Commercial vehicle manufacturers such as Hongyan, and Qingling are also developing similar technologies.

Preferential Policies

Chongqing is providing a multi-dimensional policy environment to support the creation of a world-class intelligent networked new energy vehicle industry cluster. On December 8, the first new energy vehicle testing station in China was put into operation in Chongqing. It can be seen as a reference for the standard of safety and technical inspection of alternative fuel vehicles around the country.

Shortly before that, alternative fuel vehicles that are made in Chongqing were exported for the first time by Yuxinou logistics. Compared with sea freight, this type of transportation can save 8%-20% of the comprehensive cost per auto.

Chongqing Municipal Commission of Development and Reform has recently proposed a list of policies to support alternative fuel vehicles, such as tax incentives, and exemption from traffic restrictions. The commission will also push pilot testing of battery-swapping mode. Chongqing will also start planning integrated energy stations and deepen the construction of infrastructure that support energy charging, battery-swapping, hydrogen refueling, etc.

Chongqing has built the leading intelligent connected vehicle testing environment and an advanced environment for battery-swapping. The city’s output of alternative fuel vehicles is expected to exceed 1 million by 2025 and reach 3 million by 2030. In the future, it will focus on the production of intelligent connected alternative fuel vehicles and components, intelligent networked innovation applications, and automotive software. By then, a group of domestic leading enterprises and brands with global influence will come into being.

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