Cluster Growth and Tech Innovation Drive Rapid Rise of Xuancheng's Auto Parts Sector in Anhui

Deep News
Sep 17

At the industrial park in Xuancheng Economic Development Zone, Anhui Province, automated production lines are humming with activity at Anhui Mingda Automotive Technology Co., Ltd. Workers are operating multi-station machinery that handles stamping and several other processes simultaneously on a single unit. The company produces body stamping parts like engine inner panels, sunroof covers, and cross members, as well as roll-formed components such as anti-collision beam assemblies, glass guide rails, and door sill inner and outer plates. With 29 core patents to its name, it supplies components to a range of domestic and international vehicle manufacturers.

"We considered multiple cities in the Yangtze River Delta, but ultimately chose Xuancheng because of its land costs, location advantages, and business environment," recalled Tao Zhongping, general manager of Anhui Mingda Automotive Technology Co., Ltd. Around 2020, officials from the Xuancheng Economic Development Zone management committee made repeated trips to Wenzhou to pitch their support policies, covering taxation, land, equipment subsidies, and plant leasing, which eventually secured the company's decision to relocate. The project officially broke ground in March 2021, with a dedicated local government task force providing hands-on assistance and fast-track administrative approvals. Today, all three phases of the plant are fully operational, completing an integrated R&D-to-production setup. "Phase four is now under construction, focusing on both capacity expansion and the shift toward digital and intelligent manufacturing," Tao said. He also expressed satisfaction that the company's products have evolved in line with the lightweighting trend in the auto industry, with stamping materials continuously upgraded, which has in turn driven equipment modernization among local suppliers.

The development zone has placed strong emphasis on recruiting suppliers for complete vehicle projects. Nearly 150 auto parts companies are now established there, supported by a suite of policy measures designed to give businesses long-term confidence. Bordering Jiangsu and Zhejiang provinces, Xuancheng counts auto parts as the largest industrial pillar in its economy. The city now hosts over 700 auto parts firms, which generated 112.8 billion yuan in output value in 2025, a 20.6% year-on-year increase. Among them, 453 are above-scale industrial enterprises, ranking among the top in Anhui Province. In the first seven months of this year, the sector produced 68.49 billion yuan in value, up 14.5% from the same period last year.

The booming new energy vehicle industry cluster in Anhui has also provided fertile ground for Xuancheng's auto parts manufacturers. The local supply chain has evolved into a relatively complete system, spanning upstream raw material processing such as molds, non-ferrous metals, and cathode and anode materials, midstream component production including drive shafts, wheel hubs, and seals, as well as power battery manufacturing, and downstream services like quality testing and charging and battery-swapping infrastructure. A senior official from the Xuancheng Municipal Development and Reform Commission noted that beyond strong industrial clustering, a growing focus on technological innovation is now a key trend in the local auto sector. The industry currently boasts 145 provincial-level specialized and innovative "little giant" enterprises, 18 national-level ones, and 266 high-tech firms. Several leading companies have even established overseas R&D centers in the United States, Germany, and France.

At Anhui Qingna Energy Technology Co., Ltd., located in the Guangde Economic Development Zone of Xuancheng, automated equipment runs smoothly and steadily. This company, which settled in the area in 2023, has already built three intelligent sodium-ion battery production lines in its first phase alone. "We placed all our R&D and manufacturing operations in Guangde. From raw material feeding to finished battery production, the entire process is now fully automated, which not only boosts our batch manufacturing capacity but also significantly cuts labor costs," said Cao Qifei, the company's technical director. Staff at the Guangde Development and Reform Commission's investment division explained that the local government is leveraging opportunities from integrated Yangtze River Delta development to connect businesses with academic and research resources. Qingna Energy has since partnered with institutions like Beijing University of Science and Technology and Jiangnan University to build joint laboratories, enhancing core technologies and manufacturing capabilities while speeding up the commercialization of research results. Cao added that the company is highly confident about the future. On one hand, it has developed its latest generation of layered oxide batteries and introduced low-cost polyanionic sodium-ion batteries for small-power applications. On the other, it is tailoring different products for specific market segments, maximizing its technological strengths in areas like portable energy storage.

Just a short distance away, Anhui Weihao Optoelectronics Co., Ltd. is a high-tech enterprise specializing in the R&D, design, production, and sales of touchscreens. Its flagship products, including capacitive touch panels, LCD displays, and touch display driver boards, primarily serve new energy vehicle manufacturers. Inside the cleanroom, engineers were observed carrying out display lamination, film application, and testing procedures. The company, headquartered in Suzhou, Jiangsu Province, settled in Guangde in 2021, with local government support helping it access valuable resources. "Previously, we mainly produced and delivered goods according to our automotive clients' specifications. Now, we are ramping up innovative R&D around display module technology," remarked Ye Xuefeng, assistant to the general manager. He noted that the mature industrial chain has given the company solid confidence to grow. Looking ahead, plans include innovation in human-machine interaction and anti-mistouch technologies to improve precision, algorithms, and performance metrics.

According to officials from the Xuancheng Municipal Science and Technology Bureau, the city will intensify efforts this year to promote AI-driven transformation and upgrades in sectors such as auto parts and robotics, aiming to ensure that high-tech industries contribute over 70% of the growth in output value from above-scale industries.

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