Qingdao's Jimo district is strengthening its automotive industry, with more than 200 auto parts suppliers now forming a comprehensive local supply chain and the district planning to increase its annual vehicle production capacity to 650,000 units.

Home to major manufacturing projects operated by FAW Jiefang, FAW-Volkswagen and Chery, Jimo has seen local suppliers move beyond traditional component manufacturing into smart production, automotive electronics and new-energy vehicle technologies.

Qingdao Jidong Group is one example. Starting as a small hardware workshop in 1985, the company has grown into China's leading supplier of rearview mirrors for medium- and heavy-duty trucks. It now holds a 41.3 percent share of the domestic market and has ranked first nationwide for five consecutive years.

The company began developing electronic rearview mirrors in 2017, five years before relevant new national standards took effect, marking its transition from conventional mechanical components to intelligent automotive electronics.

Other local manufacturers are undergoing similar upgrades. Qingdao Xinquan Automotive Trim Co has introduced automated production lines covering injection molding, welding and assembly, while Qingdao Haitong Group is upgrading its axle and braking-system production and testing facilities.

In 2025, Jimo produced 448,000 vehicles with an output value of 66.6 billion yuan ($9.3 billion). New-energy vehicle production exceeded 100,000 units, while output value rose by more than 40 percent year-on-year.

Closer collaboration between automakers and local suppliers is also helping shorten delivery times, lower logistics costs and strengthen Jimo's position in China's automotive supply chain.