1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Automotive interior refers to automotive interior parts with certain decorative, functional, safety and engineering attributes and automotive products used in automotive interior modification. Automotive interiors can be roughly divided into hard interiors and soft interiors. Automotive hard interior products mainly include instrument panels, door panels, pillar guards, seat back panels, etc., mainly with plastic particles as the core raw material, injection molding as the core process, supplemented by foaming, slush molding, wrapping, edging and assembly processes. Automotive soft interior products mainly include parts with soft contact surface and decorative and comfortable functions inside the vehicle, such as automotive roof, automotive carpet, soundproof cotton, heat insulation cotton, automotive seats, etc.

Relying on the industrial foundation of Liaoyuan City, automotive interior trim parts such as automotive seats, door inner panels, automotive carpets and automotive luggage compartment inner panels for autonomous vehicles will be produced in the project. 

1.1.2 Market prospect

(1) Market size of automotive interior trim parts

Automobiles are generally composed of four major systems: powertrain, chassis system, body system and electrical equipment, of which automotive trim parts are an important part of the body system. According to the specific function, automotive parts can generally be divided into four categories: powertrain, body system, chassis system and electrical equipment. Among them, the body system is a spatial structure used to accommodate the driver, carry passengers and load cargo, which mainly includes body shell, doors, exterior trim parts, interior trim parts, seats and body accessories. Automotive interior and exterior trim parts have the characteristics of decoration, safety and functionality at the same time. The automotive interior trim system is an important part of the automotive body, its application environment is relatively complex, and it also undertakes the functions such as flame retardancy, light resistance, shock absorption, heat insulation, and sound absorption while having aesthetics. The design workload of the interior trim system accounts for more than 60% of the design workload of the vehicle model, far exceeding that of automotive appearance, and is one of the most important parts of the body.

The upstream of the industrial chain of the automotive interior trim parts industry is raw material suppliers, including polyurethane, polypropylene, PVC, TPO, PU and other chemical materials, which are used to manufacture the substrates and fillers for interior trim parts. Fabrics, leather, artificial leather, etc., used as surface materials for seats, headliners, door panels, etc., and metal materials for structural parts such as seat frames. The midstream of the industrial chain of the automotive interior trim parts industry are manufacturers of parts and interior trim parts. The downstream of the industrial chain of the automotive interior trim parts industry is automobile manufacturers, automobile repair shops and automotive parts manufacturers and sellers.

At present, automotive seats account for the highest value of automotive interior trim parts, at 45%. From the perspective of the competitive landscape, due to the large number of segmented products of automotive interior trim parts and the large number of industry participants, the market concentration rate is low, showing a highly decentralized competition situation.

The downstream of the automotive interior trim parts industry chain is the application market. Automotive interior trim parts are essential parts of automobiles, and the prosperity of the automotive industry plays an important role in the development of the automotive interior trim parts industry. In recent years, China has become the largest producer and consumer of automobiles, promoting the positive development of the automotive interior trim parts industry. According to the data, in 2023, the production and sales of passenger cars in China reached 26.124 million and 26.063 million respectively, a year-on-year increase of 9.6% and 10.6% respectively; commercial vehicle production and sales reached 4.037 million and 4.031 million respectively, a year-on-year increase of 26.8% and 22.1% respectively.

In addition, the change of consumer consumption concept is also one of the main factors driving the development of the automotive interior trim parts industry. At present, more than 40% of consumers believe that automotive interior trim parts are very important. In the future, as Chinese consumers' awareness of automotive interior trim parts further increase, the industry market will further expand.

(2) Development trend of automotive interior trim industry

① Increasing industry concentration rate

The concentration rate of the automotive interior trim market is relatively low, and the competitive landscape is relatively decentralized. The domestic interior trim CR3 is only 25.21%. The main reasons include product differentiation, diverse technical requirements, high development costs, and low value of single piece. In the long run, the industry concentration rate will continue to increase, and high-quality independent interior trim enterprises will continue to expand their market share and continue to expand new product categories.

② Nearby nominated supporting mode

In order to meet the supporting needs of the mainstream production management mode of automobile manufacturing JIT (Just In Time, just-in-time production mode) and to support vehicle production capacity, the nearby nominated supporting mode that is suitable for the distribution of vehicle production capacity has become an important trend in the development of the parts industry. The regional characteristics of China's automotive parts industry are more obvious, and regional industrial clusters have been formed around the gathering and supporting of vehicle manufacturing enterprises.

③ The unit price of interior trim has been increased

With the advancement of automotive intelligence, more high-tech elements have been introduced into the interior trim, such as intelligent cabin, digital instrument panel, touch screen and voice control system, and the development of autonomous driving technology has also promoted changes in interior trim layouts to provide a more comfortable environment for passengers. The upgrading of automobile consumption attributes and the intelligent transformation of interior trim have catalyzed the increase in the unit price of automotive interior trim.

④ Continuous upgrading of automotive interior trim parts products

With the increasing income level of Chinese consumers and the gradual upgrading of consumer demand, automobiles are no longer simple means of transportation, but also carry emotional needs, etc., high-end automobiles represented by high-level luxury automobiles are sought after, and the sales of high-end brand automobiles are growing rapidly. The rapid development of the mid-to-high-end brand automobile market has driven consumers' demand for mid-to-high-end automotive interior trim parts and promoted the upgrading and replacement of automotive interior trim parts. In addition, under the trend of consumption upgrading, the transportation attribute of the automobile is gradually weakening, and consumers are gradually paying attention to the functionality, comfort, and appearance of automotive interior trim parts, pursuing the added value brought by consumer goods for themselves, and constantly prompting automotive interior trim parts enterprises to carry out research and development from many aspects such as materials, sound absorption and insulation performance, comfort, fashion, electronic and network technology applications, and new materials and technologies are continuously applied in various models to accelerate the update and iteration of automotive interior trim parts products.

⑤ Historic development opportunities for automotive interior trim

The country continues to support and encourage the development of new energy vehicles, and continues to implement the policy of exempting vehicle purchase tax for new energy vehicles. The country's support for the automotive industry is conducive to boosting the confidence of the automobile consumer market and the overall development of the automotive parts industry. In addition, the national policy also puts forward the requirements for the transformation and upgrading of the automotive product structure, to enhance research and development and production capacity, and form a complete industrial system and innovation system from key components to the whole vehicle; power system, high-efficiency transmission system, automotive electronics and other technologies have reached the international advanced level, and the key core technologies such as power batteries and drive motors are at the international leading level; capital and enterprises with strong technical capabilities are encouraged to enter the production field of new energy vehicles and key parts. The country organizes and carries out pilot projects for the access to intelligent connected vehicles and the application of "vehicle-road-cloud integration", accelerates the construction of infrastructure such as roadside perception and connected cloud control, further improves the standard system for vehicle-end, road-end and network-end, and further promotes the commercial application of intelligent connected vehicles. Only by putting forward higher requirements for the ability of automotive parts enterprises in research and development design and product innovation, and continuously optimizing the collaborative design ability between automotive parts enterprises and automobile manufacturers, can the industry develop in a more centralized, standardized and innovative direction.

Under the general trend of the electrification and intelligence of automobiles, the automotive interior trim parts industry relies on material innovation, process upgrading, integration of diversified electronic functions and other technical directions to provide consumers with a richer cabin driving and riding experience. With a clear trend of automotive interior trim upgrades, superimposed on the cost advantages and rapid response service advantages of domestic enterprises, independent interior trim suppliers are expected to gain more market share in the technological changes of the industry and become Tier 0.5 suppliers, the volume and price rise simultaneously to promote the growth of the scale of the leading independent interior trim enterprises.

China's automotive interior trim industry has ushered in a new historic development opportunity. The leading enterprises in the industry will stand out in this round of industry development and transformation by entering the capital market and relying on years of accumulation in the automotive interior trim industry.

⑥ The degree of synchronous design and development with the automobile manufacturers continues to improve

In order to speed up the development of new vehicle models and reduce development costs, some automobile manufacturers have begun to transfer synchronously part of the development and design tasks of automotive interior trim parts to automotive interior trim parts suppliers when developing new models. Synchronous development mode has gradually become the mainstream research and development mode in the automotive interior trim parts industry in the world. Under this mode, automotive interior trim parts manufacturers usually start to participate in the development from the beginning of the model design, according to the requirements of the automobile manufacturers for design, quality, cost, model style, market positioning and other factors, through the optimal combination of different materials, the design of economic and reasonable production process and innovative technology to achieve the optimal design and production of automotive interior trim parts products. In the future, the synchronous development mode is expected to be adopted by more automobile manufacturers, and the degree of synchronous design and development between China's automotive interior trim parts enterprises and automobile manufacturers will continue to increase.

⑦ Environmental protection and lightweight of automotive interior trim parts

The automotive industry has higher and higher standard requirements for energy conservation and environmental protection, which have become the focus of promoting the green development of the automotive industry, driving the development of automotive parts in the direction of lightweight and environmental protection. In the future, automotive interior trim manufacturers will pay more attention to the integration of lightweight, environmental protection and products in terms of material development and selection, production process and product reuse. In terms of material development and selection, new environmentally friendly and lightweight automotive interior trim parts materials are gradually favored by automobile manufacturers; in terms of production process, automotive interior trim manufacturers meet the increasing environmental protection requirements by continuously adjusting process parameters and improving production equipment to improve product odor, reduce production energy consumption, and reduce carbon dioxide emissions. In terms of product reuse, there is a growing emphasis on the secondary utilization of interior trim materials after automobile scrapping, reducing pollution and promoting the application of sustainable and environmentally friendly materials in automotive interior trim, such as renewable fibers and environmentally friendly plastics.

Relying on the industrial foundation of Liaoyuan City, automotive interior trim parts such as automotive seats, door inner panels, automotive carpets and automotive luggage compartment inner panels for mini- and medium-sized autonomous cars supporting autonomous vehicles will be produced in the project, which can be designed and developed simultaneously with automobile manufacturers and has a broad market prospect.

1.1.3 Technical analysis

There are various manufacturing processes for automotive interior trim parts, and different types of molding processing methods are usually selected according to the product characteristics of different interior trim parts, mainly including injection molding, compression molding, lamination, blow molding, foaming, blister molding and slush molding.

1.1.4 Advantageous conditions of project construction

(1) Policy conditions

The 14th Five-Year Plan for the National Economic and Social Development of Jilin Province and the Outline of the Long-term Vision Goal for 2035 proposes that by 2025, the local supporting rate of parts in Jilin Province will reach 70%, and the scale of the automotive industry will exceed one trillion yuan.

On May 22, 2024, the General Office of the People's Government of Jilin Province issued the Action Plan for the High-Quality Development of New Energy and Intelligent Connected Vehicle Industry in Jilin Province, proposing that by 2026, the development layout of the province's new energy and intelligent connected vehicle industry will be more optimized, and the industrial scale and competitiveness will rank among the top in China. The production and sales of new energy vehicles in the province will exceed 500000, with the penetration rate of domestic brand new energy vehicles exceeding 40%. The local supporting rate of key parts in new energy has increased significantly, accounting for 70%.

In January 2023, the Jilin Provincial People's Government issued the Opinions of Jilin Provincial People's Government on the Implementation of the "Step up" Project of the Automotive industry Cluster, proposing that by 2025, the strength of the industrial clusters will be further enhanced, the industrial ecology will be comprehensively constructed, and the industrial scale will reach trillions of yuan; a new development pattern will be constructed with the Changchun automobile cluster as the core, and Jilin, Siping, Liaoyuan, Songyuan, Baicheng, Yanbian, Meihekou and other regions as specialized "supporting clusters" to coordinate and interconnect. FAW Group will be built as a world-class enterprise, Changchun will be built as a world-class automobile city, a new energy vehicle enterprise and brand will be introduced, a number of key parts enterprises will be cultivated, a number of innovation platforms will be created, a number of industry-education integration projects will be promoted, a number of key technologies will be broken through, and a number of application scenarios will be built, basically forming a new ecology of the new energy vehicle industry. The new energy vehicle industry chain and supply chain will serve the whole country and have a certain international radiation ability.

In 2020, the Office of the People's Government of Liaoyuan City issued the Implementation Measures for the Flexible Transfer of Industrial Land in Liaoyuan City (Trial), proposing: the supply of industrial land by means of flexible period, lease before transfer, combination of lease and transfer, and long-term lease shall be provided through bidding, auction and listing in accordance with the law; in principle, the flexible transfer period of industrial land shall be 10, 20, 30 and 40 years. Enterprises are allowed to voluntarily choose the land use right transfer period among the above periods. The Implementation Measures has improved the land supply system in Liaoyuan City while reducing the cost of industrial land.

(2) Resource advantages

In recent years, Liaoyuan City has continued to optimize and adjust the energy structure, fully launched the construction of a clean energy heating demonstration city in the north, and carried out 47 clean heating transformation projects such as "coal to gas" and "coal to electricity", which is expected to reduce coal consumption equivalent to 510000 tons of standard coal. In addition, Liaoyuan is rich in wind energy, solar energy, biomass energy and other resources, providing support for the construction of green and low-carbon projects.

(3) Industrial advantages

In recent years, Jilin Province has made every effort to promote the "six returns", break down the barriers of coordination, gather the strength of all parties, integrate industrial resources, continue to enhance the resilience of the industrial chain and supply chain, and the modern industrial system has become increasingly mature. It strives to transform industrial advantages into Jilin's revitalization advantages.

In order to consolidate and expand industrial advantages and strengthen the automotive industry cluster, in recent years, Liaoyuan City has strengthened cooperation with FAW Group, scientifically formulated the Implementation Plan for the Construction of New Energy Vehicle industry Supporting Base in Liaoyuan, compiled the New Energy Vehicle Parts Industry Development Plan for Liaoyuan City (2021-2025), and created two platforms: New Energy Vehicle Industrial Park and Dongliao Mold Industrial Park in the High-tech Zone.

Liaoyuan High-tech Industrial Development Zone, Jilin Province has planned a 4-square-kilometer automotive parts industrial park, focusing on the development of automotive parts and equipment manufacturing related industries.

(4) Talent advantages

Liaoyuan City is rich in human resources, and there are vocational colleges in the urban area, which can train talents according to the needs of enterprises. Liaoyuan City has a good foundation for industrial development, only 115.13 kilometers away from Changchun, a well-known "University City" and "Automobile City", which can meet the various talent needs of enterprises.

(5) Location and transportation advantages

Liaoyuan has obvious geographical advantages, 140 kilometers away from Changchun Longjia International Airport in the north and 240 kilometers away from Shenyang Taoxian International Airport in the south. It is located in the important axis belt of Changchun one-hour economic circle and Shenyang Railway urban agglomeration. Within a radius of 200 kilometers, there are 2 provincial capitals and 8 prefecture-level cities, with a population of nearly 40 million. The urban area has built a transportation network of "three rings, four verticals and six horizontals". The inter-regional highway and railway traffic is developed, No. 303 National Highway and Siping-Meihekou Railway run through the whole territory, and Liaoyuan-Xifeng, Liaoyuan-Changchun Railways, Changchun-Liaoyuan, Yingchengzi-Meihekou, Jilin-Caoshi, Liaoyuan-Xifeng Expressways, and Liaoyuan Civil Airport that will be built soon, constitute a comprehensive transportation system for entering the hinterland of the Northeast, the sea and customs.

1.2 Contents and scale of project construction

1.2.1 Product scale

After the completion of the project, the annual production capacity of 100000 sets of automotive seats, door inner panels, automotive carpets and automotive luggage compartment inner panels will be built.

1.2.2 Contents of project construction

The project covers an area of 30000 square meters, with a construction area of 24000 square meters, production plants, warehouses, research and development rooms, equipment rooms, etc. will be mainly built, and production lines will be purchased.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of the project is 300 million yuan, including the construction investment of 240 million yuan and the current funds of 60 million yuan.

1.3.2 Capital raising

Self-raised by enterprise

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 300 million yuan, its profit will be 50 million yuan, its investment payback period will be 8 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 16.5%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

Through the construction of the project, it can promote the development of the automotive parts industry in Liaoyuan City, extend the automotive parts industry chain, drive the development of upstream and downstream industries, and form industrial agglomeration; at the same time, it can provide more employment positions for the local area, improve people's living standards, and promote the harmonious development of society.

1.5 Cooperative way

Joint venture, cooperation and other ways can be interviewed

1.6 What to be invested by the foreign party

Funds and other ways can be interviewed

1.7 Construction site of the project

Liaoyuan High-tech Industrial Development Zone, Jilin Province.

1.8 Progress of the project

Attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Management Committee of Liaoyuan High-tech Industrial Development Zone, Jilin Province

Address: No. 1633 Caifu Road, Liaoyuan City

2.2 Overview

Liaoyuan High-tech Industrial Development Zone was established in 2001. In 2019, it was approved by the Jilin Provincial People's Government to be established as a provincial-level high-tech industrial development zone, with a planned area of 16.22 square kilometers and a total population of 29000. Located in the axis belt of the two major economic zones of Changchun and Shenyang, it is 100 kilometers away from Changchun in the north, 200 kilometers away from Shenyang in the south and 500 kilometers away from Dalian Port. No. 303 National Highway and Siping-Meihekou, Liaoyuan-Xifeng, Liaoyuan-Changchun Railways run through the whole territory, forming a comprehensive transportation system that extends in all directions with Changchun-Liaoyuan, Yitong-Kaiyuan, Yingchengzi-Meihekou, Jilin-Caoshi Expressways. As the core of Jilin Province's southward opening portal, it plays an important role in the construction of innovation and transformation core area in the central part of Jilin Province.

As the core of scientific and technological innovation, the engine of industrial upgrading, the window for attracting investment, and the leader of economic development, Liaoyuan High-tech Zone actively cultivates new kinetic energy for development, takes the road of characteristic development and differentiated development, promotes innovation and entrepreneurship, improves the quality of supply, and opens a new model of coordinated development of industrial clusters and chain industries. It has been listed as a pilot for regional brand construction of national industrial clusters, a provincial-level demonstration base for mass entrepreneurship and innovation, a national demonstration base for entrepreneurship and innovation of small and micro enterprises, and a demonstration base for new industrialization industries.

In recent years, Liaoyuan High-tech Zone has accurately planned and positioned itself, forming a functional layout of "dual-core drive, one district and four parks", and the large-scale and cluster expansion of "4+1 industry", with 2111 enterprises settled. The textile hosiery industry is unique, supporting the reputation of "China's Cotton Socks Capital" and "China's Famous City of Hosiery", and the production and sales of cotton socks rank first in the country. It has successively become a national-level export hosiery product quality and safety demonstration zone and a national-level foreign trade transformation and upgrading base; the extrusion technology of high-precision aluminum profiles is the world leading. With Qixing Aluminum Industry, Jusheng Light Alloy and Liyuan Precision Manurfacturing as the leaders, the northern high-precision aluminum processing base has been built, and the market share of high-speed train body profiles accounts for nearly 60% in China. Lightweight products have jumped into the high-end market, and it has become an important strategic partner with Fortune 500 companies such as CRRC, Siemens, Alstom, and Bombardier; the pharmaceutical and health industry has obvious advantages. It has 176 drug numbers and is building a pharmaceutical fine chemical park covering an area of 2.62 square kilometers. Under the leadership of many key enterprises such as Boda Pharmaceutical, Boda Weiye, Baikang Pharmaceutical, Yinying Pharmaceutical, etc., the research and development system of anti-tumor drugs, anti-virus drugs, and health care products has become increasingly mature, and it has become the largest production base of chemical raw medicines in Jilin Province; the scale of the supporting industry for new energy vehicles has expanded rapidly; it plans to build a 4 square kilometer new energy vehicle supporting industrial base, forming a new energy vehicle supporting industrial system with Hongtu Lithium-ion Battery Separator, Sinopoly New Energy, Joyson Electronics, Shengyuan New Materials, and Jincheng Heavy Industry as the core, and has been designated as a strategic partner of FAW by the provincial government and signed a strategic cooperation agreement with FAW-FINDREAMS. The modern service industry promotes the integration of industry and city. It will vigorously develop productive and living service industries, actively promote the construction of JD.com, Yunxiang Smart Logistics Industrial Park, Holiday Inn Express Qixing, New Century Hotel, Ouya Shopping Center Phase II and other projects, and water, electricity, gas and other productive factors are fully guaranteed. It will plan Beijiang Commercial Street, revitalize Interlaken Square, renovate Youyi Road Commercial Street, and comprehensively create a characteristic commercial block integrating leisure, entertainment, catering, accommodation, commerce and other formats, as well as eating, drinking, playing and shopping.

2.3 Contact method

Postal code: 136299

Contact person: Song Yang

Tel: +86-437-3292088

Fax: +86-437-3292088

E-mail: jllyjk@163.com 

Contact method of the city (prefecture) where the project is located:

Contact unit: Liaoyuan Municipal Bureau of Commerce

Contact person: Ai Jing

Tel: +86-18643787709

E-mail: lyjhjxmc@163.com