Central China's Henan to build a leading base for NEV industry

A development and cooperation matchmaking event for the automobile industry was held in Zhengzhou, Central China's Henan province, on Nov 9, 2024.

During the event, it was revealed that Henan plans to leverage its strategic location, sizable market, human resources advantage, and strong industrial foundation to become a leading hub for the new energy vehicle (NEV) industry.

The automobile industry is an important indicator of a country's industrial strength and capabilities. In recent years, China has been actively working to advance the NEV industry, achieving a transformative shift towards the holistic development of the entire industry supply chain.

Currently, Henan has attracted 17 complete vehicle manufacturing companies and over 600 automobile parts manufacturing enterprises above designated size, driving forward the integrated growth of vehicle assembly, parts production, and the aftermarket.

In the first three quarters of this year, Henan's total vehicle sales reached nearly 840,000 units, marking an 87.7 percent increase, which was 25 percentage points higher than the national average.

During the same period, the province's automobile export trade volume reached 23 billion yuan (about $3.2 billion), increasing 22.3 percent, with electric vehicle exports accounting for 5.2 billion yuan, a 67 percent increase.

Henan will focus on five key areas to become a top hub for the NEV industry in China.

Expanding vehicle manufacturing scale

Focusing on Zhengzhou and the aviation and port district, Henan will support vehicle manufacturers to ramp up production, attract more renowned car companies to invest in the province, promote cooperation among local enterprises, introduce new technologies, and launch new models to further expand market share and enhance competitive advantages.

Strengthening industrial support

Targeting key components such as electric motors, electronic controls, and batteries, Henan will attract a number of parts manufacturers to steadily increase local component supply and enhance the automotive industry chain and supply chain levels.

Increasing open innovation

Henan will support leading vehicle manufacturers in setting up R&D institutions in the province to tackle key core technologies in vehicle integration, power batteries, automotive chips, and intelligent connectivity, promoting the transformation of more scientific and technological achievements in Henan.

Releasing market potential

Henan will optimize policies for vehicle scrapping and replacement, innovate in automotive financial products, improve charging infrastructure networks, accelerate the replacement of public sector vehicles with new energy vehicles, promote the upgrade of automotive consumption, tap into the transport capacity of the China-Europe Railway Express, and accelerate the development of inland river shipping, creating new international channels for exports, and further supporting the export of automobiles.

Cultivating a development environment

Henan will refine and improve support plans for major automotive projects, model development, technological transformation, and demonstration applications. This will provide integrated support across the entire value chain, from technological research and development to manufacturing, operations, and the automotive after-market, driving high-quality development of the automotive industry.