Several auto industrial projects, designated as the year’s priority projects for GuangZhou, have been progressing smoothly so far, according to the city’s Development and Reform Committee. These projects include three major auto industrial bases at the Guangzhou Development District, Zengcheng and Huadu. The municipal government the expanded infrastructure will help the city’s complete vehicle makers and parts and components manufacturers gain economies of scale, thereby advancing the city’s auto industry.

The auto industrial bases in Guangzhou have a long construction schedule from 2002 to 2015 and involve total investments of RMB21.5 billion, including RMB8.2 billion from the city’s coffers and the remainder from bank loans and foreign capital.

The GAIG Proprietary-brand Passenger Vehicle Project, conceived in 2008 and scheduled for completion in 2011, will have an annual output capacity of 200,000 sedan cars and 250,000 engines. The project involves a total investment of RMB3.8 billion, all from GAIG. So far, the project’s four process plants for complete vehicles have largely been completed. By the end of last year, RMB2 billion has been injected into the project, with 1.2 billion to follow this year. The project is set to boost the growth of auto parts and components and other related industries.

The first phase of GAIG Hino Auto Project in Conghua, Guangzhou is scheduled for completion next year. The project involves a total investment of RMB 2.399 billion, including RMB 1 billion from the enterprises. So far, coating, pressing and resin plants have been erected, and welding and general assembly shops have become operational. By the end of last year, RMB750 million has been pumped into the project, with RMB140 million to follow this year.