Based on Autonomous Shangchai Layout “11th Five-Year Plan”

After entering the 11th Five-Year Plan period, stricter environmental regulations will place greater pressure on enterprises, while companies will also face numerous challenging technical issues. Therefore, it is essential for firms to achieve independent research and development in order to secure intellectual property rights and build competitive products. Bai Hongfa, General Manager of Shanghai Diesel Engine Co., Ltd., recently emphasized that over the next five years, Shangchai will focus on strengthening its independent innovation through both domestic and international collaboration. The company aims to make breakthroughs in strategy, technology, product development, market expansion, and management. Bai’s vision includes cultivating top talent from around the world to establish a leading talent base in the domestic diesel engine industry. He also plans to create a “talent internationalization and research globalization” innovation mechanism. The company intends to expand its engine power range from 60 to 500 horsepower, upgrade its core business from diesel engines to high-value electronic control assemblies, shift from a single domestic market to a global presence, and extend its reach into passenger vehicles. By integrating into the global supply chain, Shangchai aims to deliver value to users, provide returns to shareholders, increase employee income, and benefit suppliers, laying a solid foundation for future international operations. At the start of the 11th Five-Year Plan, many domestic companies were not yet setting clear strategic goals. However, Bai’s bold announcement was a strong signal of Shangchai’s ambitious blueprint, serving as both an inspiration and a challenge to competitors. Industry insiders believe this move is expected, as independent innovation has long been a key focus for Shangchai. The establishment of the Power Engineering Research Institute at the end of last year marked a major step forward, reinforcing confidence in the company’s innovation path. As the first engine research institute in China, the Shangchai Power Engineering Research Institute was officially launched on December 16, 2005. This milestone represents a significant leap in technological innovation for Shangchai and sets a benchmark for the industry. Unlike traditional technical departments, which focused on tactical issues such as product modification or adaptation, the new institute is a strategic platform dedicated to product development with full intellectual property rights. As modern engines are highly complex, having dedicated R&D teams is crucial to meet evolving demands. Bruce Baikowski, Executive Director of the Southwest Research Institute for Vehicles and Power, noted that only a few companies globally have established such independent research institutes. For example, General Motors collaborates with Detroit Diesel and Allison Transmission to form Detroit Allison, combining engine and powertrain R&D to tackle new product challenges. This approach is seen as wise and forward-thinking. Although independent R&D may still be a challenge for many, it is not a new concept for Shangchai. The company has been investing in R&D for over 50 years, with a rich history of innovation. Since its founding, Shangchai has led in developing China's first single-cylinder 12-horsepower diesel engine and later created the 6135 medium-power diesel engine, establishing the Dongfeng brand with independent IP. Over the decades, the company has supported various construction machinery and truck models, contributing to the growth of China’s internal combustion engine industry.

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