“For a long time, in the light vehicle diesel engine market in China, local manufacturing companies have been in a stalemate competition in the areas of product development, production, sales and after-sales service with their respective advantages, and there has been no 'primary champion'.†Wei Anli, deputy secretary general of the Internal Combustion Engine Industry Association, said in an interview with reporters. He believes that compared with the advanced level in foreign countries, there is a certain gap between the overall technology of China's light truck diesel engine industry. At present, no company in China's light-vehicle diesel engine industry can play a leading role in leading the market and supporting the market.
â– Evening competition in the low-end market
According to the technical level, Wei Anli divided the current competition pattern of China's light vehicle diesel engine market into three major schools. First, companies with foreign ancestry, including Jiangxi Jiangling Holdings Co., Ltd., Nanjing Iveco, Dongfeng Chaoyang Diesel Engine Company. The second is local companies, including Kunming Yunnei Power Co., Ltd., Anhui Quanchai Power Co., Ltd., Beiqi Foton Environmental Protection Power Co., Ltd., Guangxi Yuchai, FAW Xichai, Shandong Laidong Engine Co., Ltd., etc. The third is joint ventures, including Deutz FAW (Dalian) Diesel Engine Co., Ltd. and Beijing Foton Cummins Engine Co., Ltd.
"China's low-end light-duty diesel engine market is in the hands of Chinese companies. However, each company has its own characteristics and is evenly matched," Wei Anli said.
In recent years, light-duty diesel engine companies have made efforts in internal potential exploration and external cooperation. In 2007, Dongfeng Chaochai introduced U.S. NGS 3.0 diesel engines, further consolidating its advantages in the light diesel engine field. The "CY" brand diesel engine produced by the company has reached the national III standard and has already reached the development platform of the national IV emission standard. The product has unique advantages in terms of environmental protection and energy saving, and is known as the first brand of China's light vehicle diesel engine. The joint ventures of Dichai and Deutz also focus on this market. Dichai itself has the advantage of medium-duty commercial vehicle diesel engines. The three platform engines jointly produced with Deutz are mainly powered by light commercial vehicles. The cooperation between the two parties just made up for the lack of Dichai. Yangchai also has a role in the research and development of new products.
On May 20, 2008, Yangchai’s self-developed YZ4DA5-30 economical common-rail diesel engine was successfully ignited.
“Despite fierce competition, China’s light-vehicle diesel engine market has not yet emerged as an independent brand enterprise worthy of Chinese pride. Compared with the heavy-duty diesel engine market, China’s light-vehicle diesel engine industry lacks a leader,†Wei Anli said.
â– Foreign companies enter quickly
On July 11 this year, the board of directors of Dongfeng Motor Co., Ltd. issued the “Announcement on Related-party Transaction on Establishing Dongfeng Light Engine Co., Ltd. with Dongfeng Motor Co., Ltd.â€. It plans to jointly invest with Dongfeng Motor Co., Ltd. to establish Dongfeng Light Engine Co., Ltd. There is a 51% stake in the new company. The main products of the joint venture company are the Nissan ZD30 Model 3 upgraded light diesel engine and the Dongfeng proprietary brand light engine. The new company was established in October this year and put into production in March 2009.
On March 26 this year, Beijing Futian Cummins Engine Co., Ltd. started construction. Beiqi Foton and Cummins has a total investment of 2.7 billion yuan and registered capital of 1.008 billion yuan. The cooperation period is 30 years. The main products are two new light diesel engines developed by Cummins for the joint venture. These two engines are the first in the world for Cummins, and the emissions meet the national IV and national V standards, and have the potential to be upgraded to national VI standards. The estimated annual production capacity is 400,000 units.
“At present, China’s light-vehicle diesel engine market still has a lot of room for development. This space is the Chinese high-end light-vehicle diesel engine market that both Chinese and foreigners have already seen. This is exactly what happened with Deutz and Cummins. Joint venture, the market you want to occupy.†Wei Anli is very worried.
The entry of foreign-funded enterprises can certainly not be stopped.
Wei Anli believes that the entry of foreign-funded enterprises is a warning to domestic light-duty diesel engine manufacturers. At present, only domestic and medium-end diesel engines are in the hands of domestic domestic enterprises. "Now, foreign-funded enterprises gradually enter the domestic high-end diesel engine market, but the future high-end diesel engine market can really be occupied by foreign-funded enterprises?" Wei Anli said, "Chinese local enterprises must work hard to learn, innovate, develop, improve their technological level, and adapt While meeting the technical advancement requirements of China's low-end diesel engines, it also launched an impact on the high-end diesel engine market. Of course, this alone is not enough for engine companies, but also requires the joint efforts of vehicle manufacturers, especially light trucks and light passengers.
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