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July 10, 2019

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Home » Business » Auto

FTZ boost for auto manufacturers

Auto manufacturers registered in Shanghai’s free trade zone and manufacturing vehicles in the zone will be allowed to manufacture new types of vehicles after completing type testing.

A memorandum signed by the China Quality Certification Center, the Shanghai Market Supervision and Administration Bureau and the China (Shanghai) Pilot Free Trade Zone Administrative Committee yesterday proposed reshaping the vehicle certification process.

In line with the new policy, a car manufacturer based in FTZ will receive a manufacturing permit after it completes vehicle type testing. The general process of certification is to test the new type first, then examine the factory after the test is approved and issue the certificate after the successful completion of the exam.

The new policy shortens the time for carmakers looking to launch new models.

On January 7, Tesla founder Elon Musk arrived in Lingang in the Pudong New Area to break ground for the company’s first overseas Gigafactory, which is the largest foreign-funded manufacturing project yet to be built in Shanghai.

The Tesla Shanghai Gigafactory integrates R&D, manufacturing, sales and other functions, and its annual electric vehicle production capacity is expected to reach 500,000.

Issuing certificates first and then reviewing production will greatly save time and money for Tesla and other carmakers and may attract more automobile manufacturers to launch their production from the Shanghai free trade zone. The reform will be expanded later to include automobile parts manufacturers.


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