IAT Automobile Technology, the Lin-gang Special Area Administration, and Lingang Group sign an agreement on June 27. [Photo/WeChat ID: shlgguanweihui]

On June 27, IAT Automobile Technology Co, the Lin-gang Special Area Administration, and Lingang Group signed a cooperation agreement to establish IAT International. This new venture aims to conduct automotive R&D, manufacturing, and export activities.

According to the agreement, IAT will operate in the Yangshan Free Trade Zone, focusing on international automotive market planning, engineering design, performance design, software development, small-batch trial production, and testing.

The company will also engage in the manufacturing and export of complete vehicles and key components, including those for passenger and commercial vehicles. It is also set to plan, design, and construct overseas vehicle and component production lines.

Additionally, IAT International will set up export operations for SKD (semi-knockdown) and CKD (complete knockdown) kits, automotive-grade chips, controllers, powertrains, and other related products.

IAT Automobile Technology is an influential independent automotive design company in China, positioned at Tier 0.5 in the automotive supply chain. The company specializes in vehicle and powertrain R&D and manufacturing, offering comprehensive services to automakers. These services include market positioning, exterior and interior design, parts supply management, and ODM services. Its clients include leading brands such as Honda, Suzuki, FAW, SAIC and Dongfeng, with over 500 models developed for more than 80 customers.

Since its establishment in 2020, the Yangshan Free Trade Zone has expanded its innovative "bonded +" functions to include bonded R&D design, bonded display transactions, and bonded maintenance and testing. The zone has attracted major automotive brands like SAIC International, BMW and Ford, thus enhancing its regional service capabilities.

In 2023, the Yangshan Free Trade Zone achieved an import and export volume of 262.1 billion yuan ($36.05 billion), indicating a 25 percent increase year-on-year. In the first five months of this year, the zone's import and export volume reached 115.3 billion yuan, up 7.14 percent.