Shandong province has solidified its position as one of China's most comprehensive automotive manufacturing provinces, as the automotive industry has become a vital driving force behind the province's industrial economic growth.

Before 2004, Shandong's automotive industry was primarily focused on commercial vehicles, with an annual production capacity of nearly 200,000 units.

In recent years, the province has experienced rapid growth in its new energy vehicle (NEV) sector, thanks to the sustained strength of its commercial vehicle industry and the establishment of production bases by leading NEV manufacturers such as BYD, Geely, and Chery.

In 2023, Shandong's total vehicle production capacity reached 2.21 million units, ranking among the top five in China. Of this total, 429,000 units were NEVs, placing Shandong among the top 10 provinces in terms of NEV production.

Beyond its impressive production scale, Shandong is committed to enhancing its automotive industry's innovation capabilities by bringing in new technology and carrying out independent research and development.

The province has developed a strong competitive edge in key areas such as raw materials, power batteries, hydrogen fuel cells, and components.

Shandong's automotive supply chain is now complete, encompassing upstream companies involved in the production of negative electrode materials, electrolytes, and core components like power batteries and motors; midstream companies manufacturing passenger cars, commercial vehicles, and special-purpose vehicles; and downstream companies providing charging infrastructure and battery recycling services.