When people are still discussing why the sales of light diesel engines of their own brands have fallen so quickly, foreign diesel engine companies have seized the opportunity in the domestic high-end light diesel engine market, and tied up with vehicle manufacturers to gradually increase market share and continue to pass technical input. To prepare for future market demand growth.
　　
Since last year, there has been a kind of voice transmission in the industry: “The development prospects of independent engine companies will become narrower and narrowerâ€. Some industry experts suggested in an interview with reporters: “If you want market demand to be stable, independent engine companies should use capital binding with vehicle customers as soon as possible.†Companies such as Cummins, Navistar, and Isuzu in the United States appear to be more “comprehensive†in this regard, and they have laid out the market as soon as possible, and have taken advantage of the upgrading of domestic diesel emission regulations to enter into long-term self-owned branded vehicles and parts and components companies. The core commercial vehicle market, and seeded in the high-end light diesel engine market.
From the January to February of this year, the diesel engine production and sales data show that the sales volume of its own-brand light-duty diesel engine is relatively dismal, and it is almost completely lost in the high-end light diesel engine sector. It is not hard to imagine that in the next few years, foreign brands will be the protagonists of the domestic high-end light diesel engine market.
Binding vehicle companies need
“The ISF2.8L/3.8L engine produced by Foton Cummins will not only supply commercial vehicles such as Beiqi Futian and Jianghuai, but will also be promoted to more vehicle companies,†an employee of Foton Cummins revealed to reporters. According to the production and sales data released by Beiqi Foton, from January to February of this year, Foton Cummins produced 24076 engines, an increase of 16.22% year-on-year; and 21,189 sold, an increase of 9.71%. Last year, Foton Cummins achieved sales of 132,300 units, including about 124,000 ISF engines. The total sales volume in 2015 is 176,000 units.
Foton Cummins is one of Cummins' five engine joint ventures in China, and it is also the only light engine production base in the world. It is the key to Cummins's great progress in China. At the same time, Foton Cummins is also the focal point of Foton Motor's improvement of its engine product system, its reliance on companies such as Weichai, and the increase in self-produced engine production to meet the needs of its four-country light diesel engine. In the first two months of this year, Beiqi Foton completed sales of 70,000 vehicles, a year-on-year decrease of 25.62%. However, the sales volume of Olympian engines and Foton Cummins engines reached 39,000 units, a year-on-year increase of 21.69%.
Since last year, domestic sales of low-end light trucks have fallen sharply, but the demand for high-end light trucks has soared. Futian Ouma, which is equipped with Foton Cummins ISF engines, saw its sales increase by 40.7% year-on-year. Last year, Foton Aoling achieved sales of 82,000 units, of which the high-end products of Ao Ling CTX and TX increased by 80.2% year-on-year, accounting for 48.5%.
According to the person in charge of the marketing department of the Foton Ao Ling Group, Foton Cummins's ISF engine is rapidly increasing. Of the Aoling series, about 30% are ISF engines, about 50% are Ao Ling Power, 10% are provided by Tianjin Lovol Power, and the rest are purchased from engines of Quanchai, Yangchai, and Chaochai.
Ensure the "priority" of market matching
In the same way, in order to seek long-term and stable development in China, the United States' Navistar has also locked down the vehicle partner Jianghuai, the second-largest light-duty vehicle company in China, several years ago. The joint venture agreement between the two parties stipulates that when the engines produced by the JAC Navistar Diesel Engine Company are competitive with similar products in terms of product, quality, and cost, the JAC Commercial Vehicles will preferentially use the products of the joint venture company. This not only guarantees stable sales of Navistar in the Chinese market, but also helps Jianghuai smoothly enter the high-end light truck market.
On September 25, 2014, the new production base of Jianghuai Navistar was officially put into production. The first Maisford diesel engine was successfully rolled off, marking the arrival of the MaxxForce brand series of power products of the Jianghuai Navistar Group into mass production. According to the plan, the base can annually produce 200,000 diesel engines. The main products include JAC 2.8L diesel engine (4DA1) and MaxxForce3.2L/4.8L diesel engines. In the future, the MaxxForce 7.2L heavy-duty diesel engine, as well as the 2.7L engine that JAC will upgrade to meet future emission regulations, will also be put into production. It is reported that Jianghua Navistar’s engine production in 2014 was approximately 66,000 sets. In 2015, it is planned to produce 80,000 units of 2.8-liter engines, 13,000 units of 3.2-liter engines, and 7,000 units of 4.8-liter engines.
JAC is also one of the major customers of Foton Cummins. In the second half of last year, Jianghuai brought together more than 20 of its three sub-brands, Shuai Ling, Chun Ling, and Luck, in a collective appearance of new standard light trucks. On the one hand, it displayed the R&D achievements of the company's Fourth National Product and the layout of the Five National Products; on the other hand, it eliminated “ The negative effects of the "Fake Country IV" incident. JAC chose the self-produced 4DA1, Jianghuai Navistar Masters, and Foton Cummins ISF engines for light truck power matching to cover the low, mid, and high subdivided product markets.
Technical reserve is the key to success
“As long as we have excellent products that meet emission regulations, even an independent engine plant can still extricate living space in China's lighter diesel engine market.†Zhu Guoan, director of the marketing center of Jiangxi Isuzu Engine Co., Ltd., is optimistic about the development prospect of independent engine companies. The narrower the view is, it does not agree. Facts have proven that Jiangxi Isuzu Engine Co., Ltd. has indeed achieved good results, and the key to winning is the availability of products and adequate technical reserves.
The sales volume of Jiangxi Isuzu Engine Company has maintained double-digit rapid growth for three consecutive years. Although last year's growth rate was lower than expected, this year's market sales are still very impressive. In addition to JMC, Jiangxi Isuzu has developed more than ten complete vehicle customers without engine production lines such as ZTE, Huanghai, Jinbei, and Haige. Matching models include pickup trucks, light trucks, and light passenger vehicles.
In 2013, Jiangling Group and Japan Isuzu Corporation each invested 50% in the establishment of Jiangxi Isuzu Automobile Co., Ltd. and Jiangxi Isuzu Engine Co., Ltd. Since the production of the 4JK1 engine with the D-MAX pickup truck in operation last year, Jiangxi Isuzu Engine Co., Ltd. has already formed. 493, VM, 4JK1/4JJ1 three series of product layout. Currently, 493 accounts for more than 70% of Jiangxi Isuzu engine sales, and sales of 4JK1/4JJ1 are also rapidly increasing. This year, Jiangxi Isuzu engine sales target is 50,000 units, of which 493 series is about 30,000 units, will be equipped with pickups and light trucks, 4JK1/4JJ1 is about 20,000 units, VM according to customer demand a small amount of matching.
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