Because the added value of heavy-duty diesel engines is much higher than that of light-duty diesel engines, coupled with the rapid increase in market demand for heavy-duty diesel engines due to the rapid development of the heavy-duty truck market in recent years, the domestic backbone diesel engine companies have placed strategic emphasis on heavy-duty engines. Due to the great importance of the company, domestic heavy-duty diesel engines are the strengths of the domestic engine industry regardless of their market share or technical level. In recent years, the heavy machine market has a high degree of concentration. The combined market share of the heavy machinery of Weichai, Yuchai, Xichai, Dongfeng Cummins and CNHTC accounted for more than 85% of the entire heavy machine market.
From Table 1, it can be seen that in the medium- and heavy-duty diesel engine market in China in 2007, Yuchai was the highest in terms of the total sales of medium and heavy-duty engines; in view of the sales volume of heavy-duty vehicles, Weichai was the highest; FAW Xichai, Dongfeng Cummins and Zhongqi The difference in sales between the two companies is not significant. In terms of sales revenue, Weichai is the highest; but per capita sales income is the highest for Dongfeng Cummins, and its lead advantage is significant.
As we all know, medium-heavy diesel engines are mainly equipped with medium- and heavy-duty trucks. Therefore, the market trend of heavy-duty trucks determines the market trend of medium and heavy-duty diesel engines. Since 2009, due to China's economic slowdown brought about by the international financial crisis, China's GDP in the first half of the year totaled 139,862.22 billion yuan, up 7.1% year-on-year, a deceleration of 3.3 percentage points from the same period of last year; the total value of import and export trade was 9462.4 Billion US dollars, a year-on-year decrease of 23.4%, of which the total value of exports was US$521.63 billion, a decrease of 21.8% from the same period of last year. At the same time, the favorable policies such as the introduction of the “Automobile Adjustment and Revitalization Plan†were mainly aimed at passenger cars and light commercial vehicles. The mid- and heavy-duty commercial vehicle market basically has no favorable policy stimulus. Therefore, the demand for the heavy truck market in the first half of the year has dropped by 28.01%.
Similarly, due to the different countermeasures adopted by major commercial vehicle companies in responding to changes in the economic environment and the different technical routes adopted in response to the National III emission regulations, the market performance of these companies is also very different. It is due to the extreme sluggishness of the heavy-duty truck market in the first half of the year and the market performance of major commercial vehicle companies. This has led to the market performance of the top five heavy-duty diesel engine manufacturers in the country. Compared with 2007, great changes have taken place. , see Table 2. In the following, the reasons for the changes in the market performance of the top five companies, product structure characteristics, current advantages, and challenges are reviewed.
Guangxi Yuchai
1. Product Structure and Features
As shown in Table 3, Yuchai's product output covers 1.2~10L, meeting the emission levels of China II, China III, China IV (YC6L~40, YC4G 260~40) and China V (YC6L~50). Its products are Dongfeng and Futian. , Yutong, FAW and other domestic vehicle manufacturers supporting a wide range.
Yuchai’s flagship products are mainly concentrated on light, medium, and quasi-heavy products with grades of 7L and below. Its market share accounts for more than 75% of its total sales volume. This is how Yuchai has shrunk dramatically in the heavy machine market in the first half of this year. Under this circumstance, the main reason for maintaining a small decline in the total sales of medium- and heavy-duty machines (Table 2).
2. Current advantages and challenges
Advantages: High domestic brand awareness, domestic first production and sales, high reputation for product cost performance and quality among users.
The challenge: The market share of its 8L and above products is very low, and there are temporarily no more than 10L models (its 12L models are now in the loading and commissioning phase); this is the main bottleneck for its competition with Weichai for the domestic engine throne.
As we all know, the relationship between the engine and the vehicle manufacturer has always been a major problem affecting the development of vehicle manufacturers and diesel engine plants. There is only Cummins left in the international independent diesel engine company that is truly independent and doing well. The main strategy of Cummins's operations in China is to establish a joint venture with a vehicle manufacturer to establish a diesel engine production plant.
In the current domestic heavy and medium-duty diesel engine camp, Shangchai has been assigned to SAIC, and Weichai has implemented reverse operations. In fact, it is not a purely independent diesel engine company. China's real large independent diesel engine company is actually only Yuchai. At present, Yuchai and the OEM are market strategic partners, not capital partners.
It can be said that this positioning of Yuchai in the automotive industry chain is also a last resort. In recent years, Yuchai’s sales growth has not been as high as the increase in sales volume. This illustrates the difficulties of Yuchai’s leaping growth in the future. Yuchai's largest strategic partner is Dongfeng, and in fact, Yuchai's share of Dongfeng's high-end high-power Tianlong has gradually been reduced. The high-end Tianlong mainly supports the engines of Renault DCI11 and Dongfeng Cummins. At present, Xichai, Dongfeng Cummins, and CTG Hangfa will all increase the supporting ratio outside the group. This is a squeeze for Yuchai's market. Therefore, Yuchai must closely guard those bus factories that do not have an engine factory. And a large number of medium-sized and light truck plants.
Enhancing the strength and supporting the king are critical to Yuchai’s market strategy.
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Weichai Power
1. Product Structure and Features
As shown in Table 4, Weichai products are mainly large-displacement, mainly 9.7L and 11.6L two Steyr series, while sales of other medium-sized and light-weight machine products account for a very low proportion of sales. This is the first half of sales. The main reason for the large drop in total amount (Table 2).
Weichai Engine has a wide range of domestic supporting customers, including Shaanxi Automobile, Beiqi Foton, Hualing, Beiben, Yutong and Jinlong.
2. Current advantages and challenges
Advantages: High domestic brand awareness, domestic first heavy-duty machine production and sales, high value-added products and profitability; the reputation of product cost-effectiveness and quality is highly valued among users.
Challenge: The product spectrum is small, and the market share of the products below 9.7L level is very low, basically no market has been opened; this is the main bottleneck for Yuchai’s competition for the domestic engine's throne.
At present, the focus of Weichai’s power planning is to improve the product chain of automotive diesel engines. Whilst the WP10 and WP12 engines of the Blue Advanced Engine III standard with international advanced power levels will be continuously put into mass production in the society, Weichai will continue to use 10L and 12L. Based on the engine, the power section is extended downwards - fully promoting and continuously improving the WP5 and WP7 diesel engines and developing the medium-sized vehicle market. As there are too many domestic medium and light diesel engine competitors, how to expand this market share will pose a major challenge to Weichai.
FAW Xichai
1. Product Structure and Features
As shown in Table 5, Xichai's product volume covers 2.0~12.6L, and the layout of medium and heavy-duty products is reasonable. Its light engines are mainly supplied externally, while medium and heavy-duty products are mainly supported by the parent company's FAW Liberation. Sales of medium- and heavy-duty diesel engines in Xiechai have also dropped significantly due to the sharp decline in the sales of liberation medium and heavy trucks in the first half of the year (Table 2).
Xichai's main products are mainly concentrated in the CA6DL and CA6DF two heavy machine products, of which 8 and 9L-level CA6DL not only the largest share in 2008, but also the fastest growth. Another 12.53L CA6DN diesel engine has almost no demand for at least three years.
2. Current advantages and challenges
Relying on the parent company's liberation of FAW, this is an advantage, but it is also a challenge. Just as the sales of heavy-duty trucks in Liberated China both fell sharply in the first half of this year, the sales of heavy-duty diesel engines in Xichai also declined significantly. How to increase the competitiveness of products through technological upgrades to increase the ratio of external supply for heavy machinery is the research topic of Xichai in the future.
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Dongfeng Cummins
1. Product Structure and Features
As shown in Table 6, Dongfeng Cummins's product displacement covers 3.9~8.9L. The 13L engine is currently in prototype production stage and is expected to be officially approved by the end of the year; there is a lack of products between 8.9~13L, and the gap is too large. The main shortcomings. Its products are mainly supplied by Dongfeng Commercial Vehicle Co., Ltd., and are also equipped with automobile and construction machinery factories such as Anhui Hualing, Zhengzhou Yutong, Xiamen Jinlong, and Liugong Machinery. In 2008, the ratio of foreign assignments has increased from 28% three years ago to 47%.
The sales of each series of products are relatively balanced. In 2008, the 6B series of the 6L level accounted for the largest proportion, but the share declined.
Dongfeng Cummins ISDe Series 6.7 liters
2. Current advantages and challenges
Advantages: Very high brand awareness and market influence; the reputation of product performance and quality is extremely high among users.
Challenges: (1) With the improvement of the performance and quality of domestic brands of engine products such as Yuchai and Weichai, the cost-performance advantage of Dongfeng Cummins products is decreasing; (2) The product dominance is mainly concentrated in foreign countries, and China can exert its initiative in space. This is not a big problem. This is a detrimental to Dongfeng Cummins' implementation of a flexible and flexible product strategy in light of the new market conditions; (3) Dongfeng Cummins, as a joint venture company, had completely separated from its parent vehicle manufacturer, Dongfeng Commercial Vehicle Company, when it was reformed many years ago. Dongfeng Commercial Vehicle Co., Ltd. will focus on developing and deploying its own engine business. The largest customer market of Dongfeng Cummins will shrink year by year. This is also the main reason for the drastic drop in sales of Dongfeng Cummins in the first half of the year.
China National Heavy Duty Truck (Hangfa, Jinan Power)
1. Product Structure and Features
As shown in Table 7, China National Heavy Duty Truck (Hangfa, Jinan Power) products are mainly large displacement, mainly 9.7L and 11.6L two Steyr series; its Hangfafa 6.48L WD415 engine production and sales are extremely low.
The products are mainly supported by the parent company. In the last two years, they are also equipped with Anhui Hualing, Jianghuai, Dongfeng Liuqi and others.
2. Current advantages and challenges
Advantages: In recent years, China National Heavy Duty Truck R&D department has always been one step ahead of its competitors in its perception of national policies and markets, making it the first to introduce EGR (which is still the only approved product of the State Environmental Protection Agency), AMT, and other new products and technologies. This ensures that in the first half of this year, in the context of economic slowdown, its market share of heavy truck products is far ahead of other competitors. At the same time, it also ensured that its engine sales did not fall too much year-on-year.
The challenge: Like Xichai, it mainly relies on the parent company. This is an advantage, but it is a challenge. At present, the heavy-duty engine products are relatively single, how to broaden the spectrum, and increase the proportion of its products for external supply, is the future of heavy truck research.
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