How Zhejiang County Is Creating a CNY100B Auto Hub from Zero

June 26 — In southeastern Zhejiang province, Changxing County in Huzhou City has become a remarkable example of how traditional manufacturing regions in China can successfully transform into hubs for emerging industries. Since attracting a major automobile manufacturer eight years ago, the county has developed an intelligent vehicle and auto parts industry that produced approximately CNY50 billion (around USD7.3 billion) in last year’s output. Today, the region aims to double that scale.

Historically, textiles and refractory materials served as two core industries for Changxing. However, both grew out of small family-run workshops, and as they expanded, their fragmented, unorganized structures increasingly became a challenge. Coupled with stricter environmental regulations and the necessity for technological upgrades, the need for industrial transformation became unavoidable.

Around 2013, Changxing welcomed a new energy vehicle manufacturer. Although the company eventually withdrew due to market conditions, the project provided valuable experience and resources in battery technology and manufacturing. Concurrently, local battery industry leaders and equipment manufacturers, such as Tianneng Group, Chilwee Group, and Noblelift Group, expanded their presence, laying the groundwork for the region’s automotive ambitions.

The Geely Effect

The pivotal shift occurred in 2018 when a prominent automaker decided to establish operations in Changxing. The leadership at the time emphasized that this was the first time the company had set up a manufacturing project at the county level and acknowledged that Changxing’s resource base couldn’t compare with larger cities.

“This decision has proven to be the right one,” commented a vice president of the automotive group and chairman of its new energy vehicle division in Changxing.

Changxing’s advantages include its strategic location in the heart of the Yangtze River Delta, a highly developed industrial ecosystem, and a government team that treats business needs as a priority,” he added.

The company completed its Changxing project in less than 28 months, setting a world record for bringing an NEV project from design to mass production — a feat recognized globally. By 2021, the plant was operational and was classified as a major industrial enterprise, with annual revenues surpassing CNY20 million (around USD2.9 million). This project became a benchmark for rapid construction, high standards, and swift return on investment within the industry.

Last year, the plant’s output value exceeded CNY23 billion, and by 2025, the Changxing Digital Factory will reach an annual production capacity of 400,000 vehicles, with a new car rolling off the line every 55 seconds.

The company’s influence extends well beyond its own production numbers, fundamentally upgrading the local supply chain. “Before this automaker arrived, the region’s largest companies had yearly outputs between CNY100 million and CNY200 million,” said a local official. Not only has this automaker brought its extensive supplier network, but it has also accelerated the overall upgrade of the regional industrial chain.

Currently, 16 upstream and downstream companies directly supply this automaker, with the total number of indirect suppliers still being counted. When the company arrived in 2018, the area had about 26 companies above a certain size in the automotive supply chain. By 2025, that number has grown to 61, and presently, the region accounts for more than half of the total automotive industry output in Huzhou.

Supplier Cluster

An example of a supplier closely aligned with the automaker is a company based in Hunan Province called Ditong Automotive Parts. It established a base in Changxing in 2018 next to the automaker’s plant, with transport times under 10 minutes.

This company mainly produces body and chassis components, according to a deputy general manager. Its entire capacity in Changxing is dedicated to supplying the local vehicle plant, which has been operational for two years and generated last year’s output value of about CNY400 million (USD58.8 million).

Another firm, Jirui Intelligent Systems, develops advanced driver assistance system controllers and other smart driving products. Unlike Ditong, a portion of Jirui’s management team previously worked at the automaker itself.

Founded in June 2024, Changxing Jirui Intelligent moved into production within a year. Its output value surpassed CNY200 million (USD29.4 million) in 2025, with goals to double that this year. By 2029, annual output is projected to reach CNY1 billion, growing by about CNY200 million annually.

Industrial Growth

In 2025, Changxing attracted a startup focused on commercial vehicles, DeepWay Technology. Unlike the automaker which emphasizes passenger vehicles, DeepWay specializes in new energy heavy-duty trucks. Its battery, motor, and electronic control system projects are already in production, with vehicle manufacturing facilities under construction.

The expansion of the industry is also reaching upstream. DeepBlue Technology, a subsidiary of Demark Group that focuses on semiconductor equipment and components, began operating in Changxing late last year.

Currently in trial production, the first phase of DeepBlue’s plant is expected to generate about CNY60 million (USD8.8 million) in output this year, rising to CNY300 million once fully operational, according to Wang Yafei, the company’s general manager.

Future Challenges

Despite rapid progress, Changxing’s new energy vehicle sector faces obstacles. Compared to cities like Shanghai and Hangzhou, it lags behind in attracting high-end R&D talent. Earlier this year, a local company highlighted its need for skilled professionals during a regular government-business forum. Many firms prefer to locate their R&D centers in larger cities, leaving Changxing mainly as a manufacturing hub and part of the broader regional division of labor.

Another common issue is recruiting general workers. To address this, the county launched the “Changxing Changqing” program in 2024, aiming to recruit, train, and keep highly skilled workers. The program offers free tuition and accommodation for students from nearby provinces, with these students often entering employment upon graduation—enrollment essentially acts as initial recruitment, and graduation as an employment gateway.