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New entrepreneurial feast: Zhujiang Delta Auto Parts Factory
On Monday, Guangzhou Toyota Motor Co., Ltd., a joint venture between Japan's Toyota and Guangzhou Automobile Group (GAC), officially came into existence. The new company has a total investment of 3.821 billion yuan, with a registered capital of 1.3 billion yuan. Both GAC and Toyota hold equal 50% shares in the venture. The initial model produced by the joint venture will be the new generation of "Jiamei" sedans, with an annual production capacity of 100,000 units. Looking ahead, the company plans to expand production based on market demand, ensuring sustainable growth.
According to the schedule, the plant is expected to begin operations in the first half of 2006. This development marks a significant milestone, as Toyota, Nissan, and Honda have already established their vehicle manufacturing and sales operations in Guangzhou. A strong Japanese automotive industry cluster is rapidly taking shape in the city, supported by key areas such as Nansha Development Zone, the Economic and Technological Development Zone, Huadu, and Zengcheng Yonghe, which are becoming major auto parts production bases.
The advantages of industrial clustering—such as scale, resource efficiency, and cost competitiveness—are becoming increasingly evident. As a result, the Pearl River Delta region is well-positioned for substantial growth, potentially evolving into a global hub for auto parts manufacturing. While Zhejiang-based private enterprises aim to develop their own vehicles, Guangdong is focusing on attracting foreign investment in complete vehicle projects. This strategy allows private companies to enter the auto parts industry, where they can enjoy higher profit margins and lower policy risks.
As the automobile industry matures, the profit margin from vehicle sales is expected to decline, shifting focus toward the automotive aftermarket. This sector is now seen as the most lucrative segment in the industry chain, often referred to as the "biggest cheese." For many small and medium-sized enterprises (SMEs), supporting Japanese car brands in Guangzhou presents a valuable opportunity, offering a wealth of potential at the start of the 21st century.