Shenzhen unveils initiative to support auto industry

Shenzhen has introduced directives focused on bolstering key industries like new energy vehicles and intelligent connected vehicles, part of the southern China booming city's ambition to build itself into a global auto hub.

Unveild by the Shenzhen Municipal Industry and Information Technology Bureau, the pioneering support initiative is a strategic move, set to revolutionize the automotive landscape in Shenzhen.

The initiative aims to invigorate firms across the production chain, streamline support mechanisms, and boost the development of new energy vehicles and intelligent connected vehicles.

By fostering projects in public service platforms, automotive electronic certification endeavors, industrialization initiatives, and more, the strategy seeks to elevate fund management efficacy and utilization to drive the high-quality advancement of the city's automotive sector. The goal is to fast-track Shenzhen's transformation into a premier "world-class automotive city of the new generation."

Under the regulations, entities specializing in new energy vehicles and intelligent connected vehicles stand to benefit significantly. Those venturing into building open, public, and resource-sharing public service platforms with standardized operations and notable performance metrics will receive substantial backing.

Qualified newly established projects are eligible for a subsidy of up to 10 million yuan (US$1.38 million), or no more than 30% of the total approved project investment. Existing projects meeting certain criteria can receive supportive grant ranging from 20% to 40% of the prior year's operating costs, with a maximum subsidy of 5 million yuan.

Firms, institutions, or industrial organizations focusing on crucial segments of the automotive electronics chain are also among those eligible for subsidies. Those engaging in automotive-specific certifications, such as functional safety certifications, stand to receive funding equivalent to 20% of approved certification fees, capped at 20 million yuan for any single firm.

Moreover, endeavors concentrating on innovative vehicle technologies like next-gen modular platforms and cutting-edge battery solutions will receive post-funding based on audited project investments, with support capped at 15 million yuan.