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Beijing Supports Automotive Electronics Business for 3 Years to Establish Automotive Electronics Production System
On August 4, the Beijing Municipal Development and Reform Commission announced a new initiative aimed at boosting the city's automotive electronics industry. The plan focuses on supporting the growth of automotive electronics companies and establishing a robust production system within the next three years. Qualified firms are encouraged to submit their project proposals to the commission within one month in order to access funding and policy incentives.
The key areas of focus for supported projects include engine and chassis electronic control systems, as well as automotive information systems, along with the necessary embedded software that integrates with these hardware components. The goal is to scale up production, enhance technological capabilities, and strengthen the competitive position of Beijing-based companies in both national and global markets.
Leading enterprises with a registered capital exceeding RMB 10 million (or RMB 2 million for software-focused firms) and a solid market presence will be prioritized for support. This move reflects Beijing's ambition to catch up with global standards in automotive electronics.
Compared to developed countries, China’s automotive electronics sector still lags in terms of application and integration. However, this gap also represents significant growth potential. For example, in 2003, the average cost of automotive electronics per new vehicle globally reached $2,025, making up about 26.2% of the total vehicle cost. In contrast, China’s average was only $885, or roughly 4.8% of the total vehicle price. This highlights the room for improvement and investment in the sector.
With the right policies and support, Beijing aims to transform its automotive electronics industry into a major player on the global stage.