FAW parts deep localization

The reporter learned from FAW Group that at the localization meeting of auto parts in Jilin Province, relevant responsible person of FAW has stated that 50% of domestic procurement will be placed in Jilin Province this year. At the meeting, FAW Group signed contracts with a number of supporting enterprises in Jilin Province for localization projects.

As the FAW Group, a large-scale enterprise in Jilin Province, the matching rate in the past was not high in the province, which is related to the relatively weak capacity of independent research and development in Jilin Province. Among the 385 enterprises that are supported by the FAW Group in Jilin Province, only 22 enterprises have provincial-level technology R&D centers. The province's auto supporting rate only accounts for 38% of the domestic supporting share of FAW Group. According to the international situation, the local auto matching rate should be around 70%. Therefore, the space for auto parts companies in Jilin Province for FAW Group is still very large.

Relevant person in charge of FAW Group stated that it is very much hoped that more auto parts companies in Jilin Province will support FAW Development, and it is particularly hopeful that the cars produced by FAW Group will be more “Jilinized” in the future.

The person in charge also said that the deep localization and simultaneous development of FAW's parts and components will be completed in the province next year, of which 50% of domestic procurement will be completed in Jilin province.

In order to seize the opportunity and achieve the goal, Jilin Province is currently actively developing 100 key spare parts enterprises to develop in three levels: to develop enterprise groups from the first level to enable independent research and development, system support, module supply, and participation. The capacity of the international division of labor; the development of small giants from the second level to enable system development and economies of scale to produce; from the third level, the development of specialized collaborative supporting enterprises to provide components and parts for enterprise groups and small giants . Our province will improve the R&D capability of auto parts and establish a three-level component research and development system at the national, provincial, and corporate levels.

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