Analysis of the reasons why Dongfeng chose Chengdu as the location of its new company

Dongfeng chose to set up a new subsidiary in Chengdu mainly for two reasons. First, Chengdu is the largest automobile industry cluster in the southwest region, with 9 vehicle manufacturers and nearly 500 parts suppliers, with an annual production capacity of more than 1.3 million vehicles. Second, Chengdu Economic Development Zone provides automobile companies with preferential policies such as land and taxation, and its labor and operating costs are relatively lower than those in the eastern coastal areas.