The Shanghai auto industry focuses on three strategic targets (namely the sales of locally produced auto up to 1 million sets per year, holding a position in World Top 500, newly increasing 50,000 independent brand cars in 2007), to accelerate arrangement adjustment and base construction, to maintain excellent development trend in vigorous market competition, so as to gradually formulate a complete industry chain and powerful aggregative effect, and strongly promote construction of the Shanghai International Auto City and the Pudong Jinqiao Base.

　　The Shanghai International Auto City, with a planned zone of 68 square kilometers, enters all-round construction phase, among which the industry zone, trading zone, international car racing field, R&D zone, parts and components zone, Tongji Auto Institute and the new town zone have all gained substantial achievements.

　　Shanghai Volkswagen, located in industry area of the Shanghai International Auto City, enters a new-round development tide. A batch of projects, such as the newly increased productivity of 100,000 cars and manufacturing 300,000 engines for economical cars of the No. 1 Factory of the Shanghai Volkswagen has entered constructive phase. The car-testing field with international advanced level, built by the Shanghai Volkswagen with years of efforts, has been put into use in 2003. The basic facilities of the parts and components zone with planned area of 8 square kilometers have achieved "Seven available, one leveled". By the end of 2003, the total number of introduced Chinese and foreign enterprises has been more than 200, with contracted investment capital of 25 billion yuan. The racing field has been completed and the F1 China Rally is successfully held in September 2004.

　　The Jinqiao Base of the Shanghai GM covers 550,000 square meters. The maximum productivity has been promoted to 180,000 cars per year. Around the three strategic targets of SAIC, the Shanghai GM establishes differential development strategy and ascertains an objective of annual production of 450,000 complete cars in 2007.

　　In the coming several years, Anting, Jinqiao and Lingang, three auto manufacture bases will be built. It is predicted that the projects of the auto industry under construction and to be built in the coming 3 years will be 15% of total industrial investment; in 2007 total production value of the Shanghai auto industry will reach 280 billion yuan; in 2010 in China the capacity of 20 million sets will be formed, among which Shanghai has capacity of 15 million sets per year with total production value above 400 billion yuan.