Wucheng's automobile and auto parts industry began developing in the 1970s, initially driven by the expansion and upgrading of rubber and glass products. Over time, this sector has grown significantly. Today, the county is home to 158 auto parts manufacturing enterprises, employing over 100,000 people. In 2006 alone, the industry generated a total output value of 12.4 billion yuan, with profits and taxes reaching 1.5 billion yuan, and foreign exchange earnings amounting to 92 million U.S. dollars.
The development of the industry can be summarized through four key characteristics. First, the industrial model has shifted toward clustering. Through various strategies such as leadership training, base construction, and scale expansion, three major industrial bases have emerged: the County Economic Development Zone, Luquan Tunzhuang, and Jiamaying. These areas are now hubs for production, with more than 20, 30, and 60 leading enterprises respectively. Together, they produce over 50 series of products, including rubber and plastic trim, seals, injection-molded parts, aluminum wheels, and brakes. This has spurred the growth of related industries such as seal strip production, engineering rubber, resin cover parts, glass fiber cloth, and aluminum alloy processing, forming a complete production and sales system with a strong industrial ecosystem.
Second, there has been a shift from mass production to research and development (R&D). In recent years, Wucheng has established long-term partnerships with over 100 research institutions, universities, and key enterprises nationwide. Experts and professors serve as technical consultants, while many companies have set up their own R&D centers. Each year, over 100 new auto parts are introduced, with numerous products obtaining national patents and filling gaps in both domestic and international markets.
Third, the way companies expand has evolved into an open strategy. By adopting a "please come in, go out" approach, enterprises have focused on innovation, market expansion, and self-improvement. This has led to rapid growth and a national development pattern centered around Wucheng. The county’s auto parts companies now operate in over 30 provinces across China, covering more than 60% of the country’s automakers. Products have also reached international markets, including the U.S., South Korea, Japan, the Middle East, and Southeast Asia.
Fourth, the industry is moving towards branding. Local manufacturers are encouraged to build brand awareness, transitioning from generic products to branded ones, and from specialized industries to recognized brands. Since 2005, the county has consistently ranked high in the number of national patents obtained. Companies like Zhongnan Group and Xinming have made it to the list of top 100 growing auto parts enterprises in China. Brands such as Aoyu Electric Vehicles and Gubeihu have gained recognition as national famous brands.
To further strengthen its position, Wucheng aims to become a "China Auto Parts Industry City." This involves expanding vehicle production, reorganizing small and medium-sized enterprises, increasing R&D efforts, and extending the industrial chain. The goal is to establish a well-known national base for auto parts R&D, manufacturing, and exports.
First, the focus will be on cultivating leading enterprises and enhancing driving capacity. Cooperation between Mercury Group and Dongfeng Motor will lead to the establishment of a company producing light trucks. The Qilu Automobile Industrial Park in South China will be developed to produce large buses and high-end commercial vehicles, optimizing the industrial chain and building a unique Wucheng auto parts system.
Second, the expansion of industrial bases will improve agglomeration. Infrastructure in the three main zones—County Economic Development Zone, Luquantun Tengzhuang, and Jiamaying—will be upgraded. Industrial layouts will be optimized, and multiple channels will be used to concentrate the industrial chain, promoting the development of service systems and platforms for industry clusters.
Third, scientific and technological innovation and brand building will be prioritized. The “borrowing brain project†will be implemented, encouraging collaboration among small and medium-sized enterprises. By 2010, 2-3 national and provincial component technology development centers are expected to be established. Enterprises will strengthen joint ventures with global companies, join international procurement systems, and promote global supply chains. Brand awareness will be cultivated, aiming to develop 3 well-known Chinese trademarks, 3 famous brands, and 5 national inspection-free products.
Finally, the environment will be optimized to attract investment. Increased support will be provided in terms of capital, land, infrastructure, and taxation. Selected competitive companies and key projects will receive financial assistance, accelerate listing processes, and expand enterprise scales. All positive factors will be mobilized to create a supportive environment for the continued growth of the auto parts industry.
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