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Get the engine to get the world's first steam Austria base
"The engine has to get the world" – a phrase that has stirred the Chinese auto industry into action. As domestic automakers begin to take the weight of this slogan seriously, efforts are being made to boost the country's automotive sector. Recently, Xiu Xiaoping, deputy director of the Torch Center under China’s Ministry of Science and Technology, shared some key developments with the Morning Post. He revealed that FAW, one of China’s leading automakers, plans to establish an automotive engine R&D base in the "EU Center" in Austria.
This announcement was made during the China Changxing International Investment and Trade Fair and the “Funding Investment Month†event held in Changxing County, Huzhou. According to Xiu, the new base will be located in the Sino-Australian Science and Technology Park, a joint venture between China and Austria in Vienna. The facility is expected to have multiple layers to meet FAW’s needs for building a comprehensive engine R&D system.
The engine is often referred to as the "heart" of the car, and it's clear that China still lags behind in key engine technologies. Industry insiders point out that challenges such as outdated production techniques, low-quality equipment, weak R&D capabilities, and limited investment—only 0.9% of sales revenue on average compared to 6% in foreign countries—are major hurdles.
To bridge these gaps quickly, many Chinese automakers are turning to partnerships and collaborations. FAW, for instance, has partnered with global giants like Toyota, Volvo, Germany’s Deutz, and Austria’s AVL. Among these, the collaboration with AVL has drawn particular attention. In mid-July, FAW Xichai Engine and AVL jointly launched the "Aowei Engine," which entered mass production. This is claimed to be China’s first engine with independent intellectual property rights, marking a significant leap in closing the 20-year gap between China’s internal combustion engine R&D and global standards.
However, while such collaborations help in short-term progress, they don’t necessarily lead to long-term mastery of core technologies or overall industry upgrades. Meanwhile, multinational automakers are pushing forward with new energy sources, advanced materials, and innovative processes, focusing on safety, environmental protection, and energy efficiency.
To keep up, China must invest heavily in R&D. "FAW sees the establishment of an R&D base in Austria as a way to stay close to advanced foreign technology and gain access to local technical and managerial talent," said Xiu Xiaoping. Austria, known for its strong industrial base, has a well-established automotive parts and engine industry. Its engine and transmission products account for 90% of the country’s automotive exports, supplying around 800,000 units annually for global brands.
In addition to AVL, companies like Steyr have also set up joint ventures with Chinese automakers. The "Zhongao Science Park," covering 25,800 square meters, was proposed by the Ministry of Science and Technology. It aims to leverage Austria’s position as a European hub after EU expansion, creating a platform for Chinese high-tech enterprises to enter the European market. The park is intended to serve as a foothold and a center for China’s tech companies going global.
In June, China’s Ministry of Science and Technology and Austria’s Federal Ministry of Transport, Innovation and Technology signed a cooperation memorandum. The project’s feasibility study is complete, and domestic companies are now being encouraged to participate. This move signals a growing commitment from both sides to foster innovation and technological exchange in the automotive sector.