China’s manufacturing PMI showed a surprise contraction in April, falling to 49.2 after three straight months of growth since January 2023. The index shrank 5.2% against March 2023, although records still show a 3.8% growth year over year.
Chinese authorities continue to discuss the strategic importance of manufacturing, especially high-end manufacturing supported by innovation and locally developed high technology. China has been topping the list when it comes to manufacturing since 2009, amounting to $4.9 trillion worth of goods produced and accounting for nearly 30% of total global output.
Strategies to hold this position include the consolidation and expansion of EV development, as the automotive industry remains the pillar of Chinese manufacturing.
A few recently announced projects and investment news items are listed below for your reference. Please reach out to learn more about any of these listed projects.
Guangzhou Automobile Group produced 177,065 units in April, a YOY growth of 37.65%, with an accumulated output of 740,944 units and a YOY growth of 1.95%. In April, GAC produced 44,900 EV units, with a YOY growth of 299.79%. The company produced 144,800 EV units in 1Q2023, a 132.05% growth YOY.
Shanghai Automotive Industrial Corp. produced 346,800 units in April, growing 119.29% in the YOY comparison. The cumulative output of 1.2977 million units indicates a 9.10% reduction in the YOY comparison, while new EV output reached 65,800 units, an 83.92% growth YOY. The cumulative EV output was 218,700 units, shrinking 11.1% in the YOY comparison.
Build Your Dream produced 208,600 passenger cars, growing 95.13% in the YOY comparison, while EV production reached 209,400 units, a 94.88% growth in the YOY comparison.
FAW-Volkswagen finalized the construction of the new-energy model base manufacturing plant in Guangdong. The facility will produce three new models and four modified or new-energy models and has officially signed a contract with a total investment of $2.3 billion.
TCL Technology Group Corp.’s solar cell production base located in the Guangzhou Development Zone, Guangdong, will be used to produce G12N TOPCon cells, with an annual production capacity of 25 GW. Investments are worth $1.5 billion.
Dongfeng Automotive Corp. announced investments of $7.1 billion in the next three years to build a super factory to produce new EVs, forming a full range of luxury, high-end, and small new EV brands, as well as to become a single-solution provider of motors, electric controls, and batteries.
Suzhou Secote Precision Electronic announced an investment of $357 million to build a production plant in Huzhou, Zhejiang, for consumer electronics equipment, including a production line for semiconductor testing equipment, consumer electronics, and production lines for new-energy assembly and testing equipment.
Zhuzhou CRRC Times Electric Co. announced an investment of $158 million to produce e-drive systems and key components for passenger EVs in Hunan.
IHI-Sullair (Suzhou) will invest $88 million to produce large centrifuge compressors in Jiangsu.
Wuhu Highly New Energy Technology, a subsidiary of Shanghai Highly Group, will invest $25 million to produce air conditioning systems for EVs in Anhui.
For more information, please contact Fred Qian at fredqian@AMTchina.org.