3 Ningxia 4 Automobile Manufacturing Enterprises Are Refitting Plants Can Produce Cars in 3 Years

In 2006, Ningxia had no local car manufacturing industry. Before that, the region lacked any experience in car modification or assembly. However, in October of the previous year, leaders of the Autonomous Region proposed introducing major automotive projects to Ningxia. This bold idea sparked a new wave of development. Relevant departments formed an inspection team and evaluated 15 leading car manufacturers nationwide. In March of this year, Yinchuan Economic and Technological Development Zone signed a strategic cooperation agreement with Dongfeng Commercial Vehicle Co., Ltd., establishing Ningxia Wanfeng Special Purpose Vehicle Co., Ltd. This marked the official start of the automobile industry in Ningxia. Later that year, in September, "Steyr" cars from China National Heavy Duty Truck Shizuishan Special Purpose Vehicle Co., Ltd. rolled off the production line. Soon after, Wuzhong’s Ningxia Wanxing Group became the first special vehicle modification company approved by the state in Ningxia. At the end of September, Chengdu Xindidi Automobile Co., Ltd. also signed a contract with Yinchuan Economic and Technological Development Zone for car production. Over the past six months, the emergence of locally produced cars in Ningxia has been likened to “thousands of pear blossoms blooming.” These four companies were even called the “four golden flowers.” But despite the excitement, many people still question whether Ningxia truly has the capability to produce cars. Three of the four companies are actually refitting plants. According to Li Wanzhen, Chairman of Ningxia Wanxing Group, their products are limited to semi-trailers and dump trucks, which are considered auto parts rather than complete vehicles. In simple terms, they assemble truck bodies but don’t manufacture the entire car. Similarly, Wanfeng Company focuses on special vehicle modifications, not full-scale car production. Only one of the four companies—Chengdu Xindidi Automobile Co., Ltd.—has a real car production project. The project, backed by Yinchuan Economic and Technological Development Zone, involves a 1.8 billion yuan investment and a 3-year construction period. Once completed, it will produce 60,000 heavy, medium, and light trucks annually, along with 40,000 mini vehicles and passenger cars. Ningxia's push into the automotive sector is driven by several factors. First, it helps local resource industries, such as steel and tire manufacturers, by creating demand for their products. For example, Wanxing uses locally sourced steel and tires, contributing millions in annual purchases. This stimulates the regional economy and strengthens the industrial chain. Second, the automotive industry brings significant tax revenue. A single brand like "Steyr" can generate over 2.2 billion yuan in taxes annually. Additionally, it lowers transportation costs for local consumers and promotes the growth of the equipment manufacturing sector in Ningxia. By investing in car production, Ningxia aims to boost its industrial capabilities and position itself as a key player in the national automotive landscape. The future of the industry looks promising, with plans to establish a self-sufficient and competitive automotive sector in the region.

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