Jiangsu Xinquan Automotive Trim Co Ltd, a Tesla supplier, recently signed with Lingang Group to build an intelligent auto parts manufacturing base and R&D center in Lin-gang Special Area.

Xinquan focuses on the design, manufacturing and sale of auto interior and exterior system parts and their molds. It integrates synchronous R&D, mold development, experimental testing, manufacturing, marketing and sales, and is able to offer trim assembly products such as dashboard assembly, overhead file cabinet assembly, door interior protection plate assembly, and column protection plate assembly. It produces parts for both commercial vehicles and passenger vehicles.

Xinquan enjoys a stable, long-term relationship with Tesla, Geely, SAIC, Chery, GAC Group, Shanghai Volkswagen, FAW-Volkswagen, Changan Ford, BYD and other well-known passenger car companies.

The firm is the third Tesla supplier to be signed in the area in recent days, after Shanghai Unisonal and Everwin Precision. There are also several Tesla parts suppliers that have been operating in Lin-gang Special Area for a considerable amount of time.

The suppliers' move into the vicinity of Tesla's gigafactory is accelerating the formation of a supply chain, which gives Tesla China sufficient confidence in improving the home-made Model 3 car parts.

In January, the localization rate of parts in Tesla's Shanghai factory was about 30 percent, and that number is expected to increase to 70-80 percent by next July.