In recent weeks, the new axle testing facility at Hubei Axle Co., Ltd. has entered a crucial phase of debugging and optimization. Technician Xiao Shi shared, “With this advanced system, we can now monitor axle speed, temperature, and noise levels in real time through computers, significantly improving product quality beyond industry standards.†This innovation marks a key step forward for the company as it continues to enhance its technological capabilities.
Hubei Cheqiao, the predecessor of Hubei Axle, was originally established in 1978 as the Gongyin County Machine Tool Factory. It went public in 1997, earning the nickname “the first axle of the axle.†In 2002, the company transitioned into a private enterprise, setting a clear strategic direction: to become the largest bus bridge production base. This shift led to increased investment in R&D, with partnerships formed with prestigious institutions like Wuhan University of Technology and Yangtze University. These collaborations enabled large-scale technological upgrades, resulting in the development of internationally competitive technologies over nearly three decades. The company also introduced state-of-the-art processing and testing equipment, achieving an annual production capacity of 100,000 sets of car axles and 240,000 sets of spiral bevel gears, supplying major manufacturers such as Beiqi Futian, Dongfeng, Yutong, and others.
By 2003, as the axle industry in Hubei underwent rapid industrial upgrading, many mid- to low-end production lines were relocated. Within just one year, over a dozen auto parts companies emerged, creating a vibrant ecosystem. Public Security County, home to Hubei Cheqiao, recognized this trend and began supporting the auto parts sector through policy incentives, financial aid, and talent development.
To maximize the benefits of the industrial cluster, the county focused on attracting main component suppliers, shortening supply chains and reducing operational costs. Local banks and enterprises also held regular matchmaking events, boosting credit sales by over 30%. Additionally, the county actively sought foreign investment to strengthen R&D capabilities. Leading companies now have dedicated R&D centers, while smaller firms maintain specialized departments, with R&D investment reaching more than 3% of sales revenue. These efforts have driven the growth of the auto parts industry, expanded the supply chain, and transformed the concept of a leading enterprise into a full-fledged industrial cluster.
According to Liao Junyong, Assistant General Manager of Hubei Axle Bridge, in the first half of this year alone, the company launched 117 new axle products, accounting for 60% of total bridge sales. The company's products have now entered the high-end domestic automotive market, with passenger car axles holding a 16% national market share. In 2006, Hubei Axle’s total industrial output reached 413 million yuan, with sales revenue of 334 million yuan. This contributed significantly to the local auto parts industry, providing a market share of 12.9 billion yuan and driving 400 million yuan in related production and sales.
Under the leadership of Hubei Axle Co., Ltd., the county’s auto parts industry has grown substantially. A four-bridge enterprise structure has been formed, led by Hubei Cheqiao, Jingzhou Axle, Jingjiangyuan Axle, and other supporting companies. Today, there are 43 auto parts enterprises in the county, employing over 4,300 people. With an output value of 1.38 billion yuan, sales revenue of 1.08 billion yuan, and profits and taxes totaling nearly 100 million yuan, the sector accounts for 32.1%, 26%, and 29.8% of the county’s total, respectively.
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