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Endogenous Transformation Revitalizes Longquan Zhejiang’s Traditional Auto Parts Industry

2025-10-20 0
Longquan's Auto Parts Industry Grows Strong via Endogenous Transformation

On October 19th, in the intelligent factory of a Zhejiang-based automotive air conditioning compressor company located in the Longquan Economic Development Zone, automated equipment operated in an orderly manner, and air conditioning compressors took shape on the production line one after another. Lin Jian, the company's general manager, stated that the newly commissioned intelligent technological transformation project for the compressor assembly of automotive air conditioning thermal management systems with an annual output of 100,000 sets has injected strong impetus into the enterprise. Up to now, the company has achieved 820 million yuan in industrial output value, with new orders registering a year-on-year increase of 32%.

With the rapid popularization of new energy vehicles and intelligent connected vehicle technologies, the innovation and upgrading of the traditional auto parts industry has become an urgent imperative. In recent years, Longquan has faced this pressing challenge head-on, focusing on innovation-driven development, transformation and upgrading, and industrial chain development. More than 200 traditional auto parts enterprises have realized full coverage of Version 1.0 of digital transformation in the industry by implementing a number of endogenous transformation projects. From January to August 2025, the industrial output value of industrial enterprises above designated size in Longquan's auto parts industry reached 3.72 billion yuan, a year-on-year growth of 26.8%. The city has fostered 5 national-level specialized, sophisticated, distinctive and innovative "little giant" enterprises, and over 80% of industrial enterprises above designated size are national high-tech enterprises, forming a sound echelon of high-quality enterprises.

In the process of endogenous transformation, Longquan has taken platforms, technology and talent as the key pillars to promote the endogenous development of the auto parts industry in a coordinated way. In addition to increasing investment in technological R&D and building enterprise service platforms, Longquan has tackled 26 industrial technological problems through the "talent bidding for projects" mechanism, set up an Automotive Air Conditioning Industry College, cultivated more than 300 industrial talents under the model of "integration of industry and education plus integration of vocational and technical education", and built 9 postdoctoral research stations, laying a solid foundation for innovative breakthroughs.

At the same time, taking digitalization, intellectualization and greenization as the development paths, Longquan has built a gradient cultivation system by promoting the "industrial brain + future factory" model. Furthermore, Longquan has strengthened targeted investment promotion through the "industrial chain + industrial chain chief system" mechanism, forcing enterprises to accelerate technological transformation and upgrading. In 2024, 10 projects with an investment of over 100 million yuan settled in Longquan, and nearly three-quarters of industrial enterprises above designated size carried out technological transformation for endogenous development, breathing new life into the traditional industry.

Benefiting from the outstanding achievements of the endogenous transformation of the auto parts industry, Longquan City's Three Focuses to Boost the Endogenous Transformation of the Traditional Auto Parts Industry has recently been successfully selected into the list of typical cases (the second batch) for cultivating and developing new productive forces through the endogenous transformation of traditional industries in Zhejiang Province 2025, released by the Zhejiang Provincial Department of Economy and Information Technology. It has also become the only selected "government-side" case of Lishui City this time. "This selection is a high recognition of the strength and innovative spirit of Longquan's traditional auto parts industry, and also points out the direction for future technological upgrading of the new energy thermal management industry, effectively driving the industry to accelerate its development towards greater efficiency, safety and intelligence," said Ye Biwen, Secretary-General of the Longquan Municipal Automotive Parts and Thermal Management Industry Association.

Yongwei Liu, Chilong Ye, Mingyu Liu, Ke Chen

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