In order to better guide the development of the auto parts industry, Jilin Province began to set up a special fund for the development of the auto industry in 2006. It mainly uses interest subsidies to support enterprises. In the past three years, Jilin Province has disbursed a total of 80 million yuan in special funds for the development of the automobile industry. This fund has played a role of “reversing all directions†and has promoted the rapid growth of the parts and components industry.
In the development of the automobile industry in Jilin Province, the parts and components industry has lagged behind the development of the entire vehicle industry. The main problems are the relatively small number of companies and the overall scale, the low level of support, and weak R&D capabilities. In order to change this situation, Jilin Province will focus on the development of the auto parts industry. In 2006, Jilin Province explored a government-led new model for industrial development and set up a special fund for the development of the automobile industry. It allocated RMB 20 million from the fiscal year. In 2008, Jilin Province increased its special funds to RMB 40 million.
According to the requirements of the Jilin Provincial Government, this special fund is mainly used for the production capacity of auto parts, the construction of enterprise technology centers, and the construction of public technology research and development platforms. From the situation in 2008, a total of 142 projects were allocated through special funds, which drove a total investment of 4.98 billion yuan. Among them, 120 production capacity building projects are planned, with a total investment of 4.12 billion yuan. After the project is completed and put into production, it can realize sales revenue of 17.37 billion yuan. The implementation of a large number of special funds projects has promoted the rapid growth of the automobile parts industry in Jilin Province.
The data shows that from 2006 onwards, the output value of auto parts in Jilin Province has increased significantly by more than 36% for two consecutive years. In 2008, despite the financial crisis, the output value of automobile parts in Jilin Province still exceeded 26%.
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