China’s Aerospace Revolution: Building Rockets Like Cars

China is revolutionizing its aerospace industry by adopting a lean manufacturing method inspired by Toyota’s pull system. This approach synchronizes rocket and satellite production with demand, boosting efficiency and scalability. By integrating AI, robotics, and digital platforms, China aims to reduce waste and meet the growing demand for space systems. Though lagging behind the U.S., this transformation positions China as a key competitor in the global space race, embracing industrial-scale production.

China is quietly overhauling the way it manufactures rockets and satellites, adopting a revolutionary production method inspired by the automotive industry. This transformation could reshape the global space race, enabling China to produce space systems as efficiently as cars and position itself as a leader in the rapidly growing aerospace sector.

The shift is anchored in a production philosophy called the “final assembly pull” system, which incorporates principles of lean manufacturing. This concept, originally popularized by Toyota, focuses on reducing waste, improving efficiency, and ensuring that components are produced only when needed. By applying this approach to aerospace manufacturing, China aims to achieve faster, more cost-effective, and scalable production while maintaining high quality.

A New Approach to Space Manufacturing

Traditional aerospace manufacturing operates on a “push” model, where components are produced based on forecasts and schedules, often leading to inefficiencies like delays and surplus inventory. In contrast, the “pull” system flips this process. Components are only manufactured and delivered when required, minimizing waste and ensuring synchronization across the production chain.

This system was perfected by Toyota’s Production System in the mid-20th century. Using tools like kanban cards to signal demand, Toyota created a responsive, just-in-time supply chain that became the foundation for lean manufacturing globally. Now, China’s space sector is adapting this methodology to build rockets and satellites.

Under this model, the production flow begins with a downstream request—such as a final assembly line—triggering the manufacture of components and subsystems further up the supply chain. The result is a tightly coordinated process where every part, from rocket engines to solar panels, is built to align with a specific launch schedule.

The Challenges of Transformation

The adoption of the pull system represents a major cultural and structural shift for China’s aerospace industry. Traditionally, the industry has operated with a relatively flat structure, giving suppliers significant autonomy. The new system introduces a more hierarchical, pyramid-shaped organization, centralizing control with the final assembly integrator.

According to Wang Guoqing, Chief Information Officer of the China Aerospace Science and Technology Corporation (CASC), this transformation is both systemic and disruptive. In a recent paper published in the Journal of Mechanical Engineering, Wang’s team highlighted how this shift moves China’s space program from crafting one-of-a-kind, hand-built systems to scalable, repeatable production capable of meeting the demands of modern space exploration.

Entering the Era of Mass Customization

The global space industry is entering a phase of “mass customization,” marked by high-frequency launches and the deployment of massive satellite constellations. By 2045, annual orbital payloads are projected to reach 170,000 tonnes, making scalable production a necessity for any nation aiming to lead in space.

China’s pivot toward industrial-scale manufacturing mirrors efforts by SpaceX, which has already launched over 7,000 satellites for its Starlink network. However, unlike SpaceX’s centralized approach, China’s strategy relies on a networked ecosystem of state-owned enterprises, research institutes, and private suppliers working in tandem.

Projects like Guowang, Qianfan, and Hongtu-3—China’s mega-constellations—are driving demand for large-scale production. Thousands of satellites and launch vehicles will need to be built in the coming years, requiring a fundamental rethink of traditional manufacturing practices.

Advanced Technology Driving the Shift

China’s new production model is supported by cutting-edge technologies. Modular and reconfigurable assembly systems, such as pulsed assembly lines, allow for efficient production of multiple rocket models. Smart flexible assembly centers leverage AI and robotics to adjust workflows dynamically, making them ideal for mixed production.

A critical enabler of this transformation is a collaborative digital platform that connects factories, suppliers, and research facilities across China. This “digital pull board” uses cloud computing, IoT, AI, and digital twins to provide real-time visibility into production and supply chains. Managers can track progress, identify bottlenecks, and receive automated alerts for missing components, ensuring smooth operations even across security-classified networks.

China’s space launches are already accelerating as the new system takes hold. However, the country still faces a significant gap with the United States, which completed 158 orbital launches in 2024, compared to China’s 68 launches. Much of the U.S. activity is driven by SpaceX, highlighting the competitive advantage of industrial-scale production.

Despite this disparity, China’s adoption of the pull system marks a bold step forward. By applying automotive-style efficiency to aerospace manufacturing, China is positioning itself as a serious contender in the global space industry. As the demand for space systems continues to soar, the nation’s ability to scale production could prove decisive in shaping the future of space exploration.