Economy recovering from double hit of COVID-19 and auto industry depression
The district’s economy is recovering following the double hit of the novel coronavirus epidemic and a depressed auto industry.
Manufacturing in Jiading slowed in the first half, but the auto industry had a gross output of 144.67 billion yuan (US$20.9 billion) for the first six months. Companies producing auto parts achieved an output value of 15.58 billion yuan in June and were in profit for the second consecutive month.
Enterprises such as Shanghai Volkswagen Powertrain and Shanghai Automobile Gear Works have resumed production. Six projects, including the Fosun FFT global headquarters and Shanghai hydrogen energy and fuel cell test center, have been given approval.
“The total investment of our project is close to 100 million yuan, and samples have already been put into production. Sales revenue in the second quarter increased 12 percent compared with the same period last year and surged 61 percent year on year in the first quarter. We feel full confidence in the auto market,” said Cheng Jinsong, general manager of Valeo, an automotive supplier and technology company based in Jiading.
Three foreign-owned enterprises — Vitesco Technologies, Duyu Information and Chongbang Group — signed contracts with the district last month with the total investment of 2.48 billion yuan.
The Jiading Shopping Festival and mall promotions spurred consumption.
Life Hub@Anting mall saw 70,000 people daily during the festival, with the sales at the same level as last year.