Jinhua has successfully passed the initial evaluation for China's Auto Transmission Gear and Gear Industrial Base, marking a significant milestone for the city. According to Chairman Tian Yamei of the China Auto Parts Cooperative Group, the national government will soon provide financial support to Jinhua following the successful assessment. This announcement was made during an expanded meeting held in Yiwu, where industry leaders were briefed on the progress.
It’s important to note that this industrial base is not just a local initiative—it represents a nationwide recognition of Jinhua’s role in the auto parts sector. Two years ago, the Jinhua municipal government began its application process for the designation. Experts from the China Auto Parts and Marketing Group, including Deputy Secretary-General Luo Jianli, conducted multiple visits to assess the city’s capabilities. As of now, all performance indicators have met the required standards, and the final phase of the evaluation is underway.
Jinhua’s automotive transmission gear manufacturing dates back to the 1960s and 1970s. Over time, the industry has grown significantly, with more than 400 manufacturers contributing over 1 billion yuan annually. The city produces more than 70% of the country’s automotive transmission gears, making it a key player in the domestic market.
Luo Jianli emphasized that Jinhua has developed a strong cluster of auto transmission gear companies. It is home to the largest number of such enterprises in the country, with leading firms like Zhejiang Dongfeng Gear Co., Ltd. and Jinhua Qinghua Industrial Co., Ltd. operating within the region. The production base is centered around Jinhua City, with supporting industries in Wuyi, Yongkang, and Yiwu. Major companies such as Dongfeng, Tsinghua, Xinhua, and Lida have annual outputs exceeding 600 million yuan, and some of them even export to countries like Italy and Russia.
One of the key factors behind Jinhua’s success is its low-cost strategy. Dai Jinfang, director of Jinhua Lida Gearbox Factory, highlighted how his company can produce over 400 types of automotive transmission gears, including models from JAC, Dongfeng, and Isuzu. Despite being smaller than some competitors, Lida Gearbox is recognized nationally as the governing body of the National Auto & Motorcycle Traders Association.
The proximity of manufacturers in Jinhua, Yongkang, Wuyi, and Yiwu has created a symbiotic ecosystem. This close-knit network allows for efficient information exchange, spare parts supply, and talent movement, which collectively contribute to a low-cost production environment. As a result, Jinhua’s automotive transmission gears are typically 10–30% cheaper than those from other regions, giving the city a competitive edge.
While low-cost strategies have driven growth, experts believe that Jinhua must now move towards higher-value production. Currently, the city lacks a complete passenger car transmission system, though Tsinghua University is conducting research on manual and automatic transmissions. With the official recognition of the industrial base, the national government plans to invest in upgrading Jinhua’s production facilities, shifting the focus toward truck and car transmission gears for international markets.
Industry forecasts suggest that global auto parts trade will reach $1.2 trillion by 2010, with many international automakers looking to source components from cost-effective regions like China. With increased support, Jinhua is well-positioned to become a major exporter of transmission gears, attracting more global buyers and solidifying its status as a key player in the automotive industry.
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