Chongqing Ascends as a Global Hub for Smart, Connected Vehicles
Chongqing, China, is rapidly establishing itself as a leading force in the latest energy vehicle (NEV) industry, demonstrating remarkable growth and a commitment to innovation. Recent data reveals a significant surge in automotive production and a strategic focus on smart technologies, positioning the city as a key player in the future of mobility.
Record-Breaking Automotive Production in 2025
In 2025, Chongqing’s automotive output reached 2.788 million vehicles, a 9.7% increase year-over-year, securing its position as the top-producing city in China. Notably, NEV production experienced even more substantial growth, rising by 36% to 1.296 million units. This growth is fueled by a thriving industrial cluster now exceeding 800 billion yuan (approximately $167.2 billion) in scale.
Chang’an Automotive: A Model of Smart Manufacturing
Chang’an Automobile, a major player in Chongqing’s automotive sector, exemplifies the city’s commitment to smart manufacturing. Its digital-smart factory utilizes advanced technologies to manage and control every stage of the process – from research and development to production and inspection – achieving over 50% higher production efficiency compared to traditional facilities. Chang’an has undergone a complete system, technology, and product upgrade, developing over 400 core technologies in the “three electrics” (battery, motor, and electronic control) sector and launching numerous NEV models.
In December of last year, Chang’an produced its 30 millionth Chinese brand vehicle in Chongqing. Chang’an Automobile Chairman Zhu Huaorong aims to achieve 5 million vehicle production and sales by 2030, with NEVs accounting for over 60% of that total.
Building a Comprehensive Supply Chain Ecosystem
Chongqing is actively fostering a collaborative and efficient industrial chain, encompassing upstream raw material processing and core component manufacturing, midstream vehicle assembly, and downstream logistics and after-sales service. Key industrial zones like Liangjiang New Area and western Chongqing are attracting and nurturing local businesses, aiming to create a “one-hour supply chain ecosystem” where over 70% of components are sourced locally or regionally.
The city has successfully attracted leading battery manufacturers like CATL and Fengchao Energy Technology, and supports collaborations between companies like Chang’an and local universities to advance battery technology research.
A Growing Network of Automotive Suppliers
Chongqing now boasts 624 NEV ICV component enterprises, 220 automotive software companies, and 27 vehicle-grade chip enterprises, forming a cluster of “19 complete vehicle enterprises + over 1200 component enterprises.” This robust network maintains a local supply rate of over 45% for automotive components.
Autonomous Driving Advancements
Chang’an Automobile achieved a significant milestone last year by becoming the first in China to obtain a license plate specifically for Level 3 (L3) conditional autonomous driving. The company’s independently developed system has undergone over 5 million kilometers of testing on Chongqing’s challenging mountainous roads, with a perfect “zero accident” record.
The ‘Factory Within a Factory’ Model
The implementation of the “factory within a factory” model, exemplified by CATL’s facility in Liangjiang New Area, is streamlining supply chains and minimizing logistics costs. This approach involves arranging the supply chain on a “minute-by-minute” basis.
Future Outlook: Chongqing’s Vision for a Global NEV Hub
Wang Zhijie, Director of the Chongqing Municipal Economic and Information Commission, stated that over the next five years, the city will focus on restructuring and upgrading the complete vehicle, component, and after-sales markets, with the goal of establishing a world-class NEV ICV industrial cluster.
Did you know?
Chongqing’s new energy ICV industry contributed 60.9% to the growth of the city’s industrial enterprises with annual revenue exceeding 20 million yuan last year.
FAQ
- What is Chongqing’s automotive production for 2025? 2.788 million vehicles.
- What percentage of Chongqing’s automotive production are NEVs? 36%
- What is the scale of Chongqing’s NEV industrial cluster? Over 800 billion yuan (approximately $167.2 billion).
- What level of autonomous driving has Chang’an Automobile achieved? Level 3 (L3) conditional autonomous driving.
Pro Tip: Keep an eye on Chongqing’s advancements in battery technology and supply chain management – these are key areas driving its growth in the NEV sector.
Want to learn more about the evolving automotive landscape? Explore our other articles on sustainable transportation and the future of electric vehicles.
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