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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 up the Chinese auto industry, urging domestic manufacturers to wake up and push forward. Recently, Xiu Xiaoping, deputy director of the Torch Center under the Ministry of Science and Technology, revealed during the China Changxing International Investment and Trade Fair and “Funding Investment Month†that FAW is planning to establish an automotive engine R&D base in the "EU Center" in Austria. This move reflects a growing trend among Chinese automakers to seek external collaboration and advanced technology to bridge the gap with global leaders.
The research center will be located in the Sino-Australian Science and Technology Park in Vienna, a joint initiative between China and Austria. According to FAW's requirements, the facility will be designed with multiple layers to support the development of a comprehensive engine R&D system. As the "heart" of a vehicle, the engine remains a critical component in the automotive industry. However, China still faces challenges such as outdated production technologies, low equipment standards, limited technical capabilities, and insufficient investment in R&D, which averages only 0.9% of sales revenue, compared to 6% in foreign countries.
To address these issues quickly, major Chinese automakers have turned to partnerships and joint ventures. FAW, for example, has collaborated with Toyota, Volvo, Germany’s Deutz, and Austria’s AVL. Among these, the partnership with AVL has drawn significant attention. In mid-July, FAW Xichai Engine and AVL launched the "Aowei Engine," marking China’s first engine with independent intellectual property rights. Industry experts claim this achievement has effectively closed a 20-year technological gap between China and the global leaders in internal combustion engine R&D and manufacturing.
However, despite these progressions, the domestic engine industry still lacks control over core technologies and overall system upgrades. Meanwhile, multinational automakers are increasingly focusing on new energy sources, advanced materials, and innovative processes, aiming to dominate key areas like safety, environmental protection, and energy efficiency. To keep up, strong R&D capabilities are essential.
Xiu Xiaoping believes that by setting up an R&D base in Austria, FAW aims to stay close to advanced foreign technologies and gain access to local expertise and management talent. Austria, known for its highly developed industrial sector, has a renowned engine and transmission industry. Its engine and transmission products account for 90% of the country’s automotive exports, supplying around 800,000 units annually to global brands.
In addition to AVL, companies like Steyr have also established joint ventures with Chinese automakers. The "Zhongao Science Park," proposed by the Ministry of Science and Technology, covers 25,800 square meters and aims to leverage Austria’s strategic position as a European hub after the EU’s expansion. It serves as a platform for Chinese high-tech enterprises to enter Europe and expand globally.
In June, the Chinese and Austrian governments signed a cooperation memorandum, and the project's feasibility study has been completed. Now, domestic companies are being encouraged to participate and set up operations in the park. This initiative marks a new chapter in China’s efforts to strengthen its automotive industry through international collaboration and innovation.