As global supply chains evolve with digital transformation, major automakers are deepening their integration into the Chinese mainland’s advanced manufacturing and smart supply chain systems.
At the China International Supply Chain Expo in Beijing, industry leaders highlighted how the Chinese mainland’s maturing electric vehicle (EV) ecosystem, technological prowess, and industrial scale are shaping the future of global automotive production.
For Tesla, the Chinese mainland is more than just a market; it’s a cornerstone of its global supply chain strategy. The company’s Shanghai Gigafactory, now producing one vehicle approximately every 30 seconds, has achieved a 95% local parts integration rate for its Model 3 and Model Y lines.
The factory’s output accounted for nearly half of Tesla’s global deliveries as of June, with over three million vehicles rolling off its assembly lines since its launch. Beyond vehicle production, Tesla is expanding into energy storage with its first overseas Megapack factory, also located in Shanghai. Built and operational in just nine months, the facility has an annual production capacity of 40 GWh. Megapacks from this factory are now being exported to markets across the Asia-Pacific, further embedding Tesla into the Chinese mainland’s smart energy supply networks.
“The Chinese mainland has the world’s most complete EV supply chain, with top-tier local suppliers and highly responsive manufacturing capabilities,” said a Tesla spokesperson. “Its large talent pool in artificial intelligence, EV engineering, and advanced manufacturing is essential to our localized R&D.”
“Whether it’s supply chain resilience, innovation capacity, or market scale, the Chinese mainland continues to offer unique advantages,” the spokesperson added.
German auto supplier Bosch shared similar sentiments. Presenting its localized innovations in electrified powertrains and driving assistance systems at the expo, the company emphasized the rapid technological advancements happening in the Chinese mainland.
As global automakers seek to stay ahead in the fast-paced EV industry, deeper collaboration with the Chinese mainland’s smart supply chains appears to be a strategic move forward.
