According to the latest statistical data on 158 host companies, in 2005 the internal combustion engine industry delivered such a report card: the total industrial output value reached 81.614 billion yuan, an increase of 1.2% year-on-year; the sales income of products was 80.816 billion yuan, an increase of 0.76% year-on-year; The total profit was 5.212 billion yuan, a year-on-year decrease of 26.29%; 45 loss-making enterprises, an increase of 15.38%, a loss of 28.48%, an increase of 3.8%.
In 2005, the total number of main engines and accessories in the internal combustion engine industry was US$3.645 billion, a year-on-year decrease of 2.37%, US$1.799 billion, a year-on-year increase of 36.59%, and a trade deficit of US$1.846 billion, a year-on-year decrease of 23.59%.
In this regard, the industry authority - China Internal Combustion Engine Industry Association gave the following comments: domestic growth is flat, foreign trade exports are good, profits have fallen sharply.
In the last year of the “Tenth Five-Year Planâ€, the industry changed its trend of continuous rise in previous years, a year-on-year decrease of 26.29%, which caused the industry to lose sight. It is understood that the profit of a leading company has fallen by more than 50%. The seriousness of the problem lies not only in the large decline in profits but also in the abruptness of this situation, as the first four years of the internal combustion engine industry can even be described as "going ahead."
Overfulfilled tasks in the first five years
The tenth-five-year plan for the internal combustion engine industry is: output value, output growth of 6% to 7%, volume of goods reaching 240 million kilowatts, total industrial output value of 100 billion yuan, of which output value of internal combustion engine accessories reaches 24 billion yuan, and exports have reached 350 million to 400 million yuan. Dollars.
The result of actual implementation is that it took only three years to fully complete the established tasks. Of course, the quantity does not explain all the problems, and from the aspect of quality, it is quite punctuation.
Look at product development first. During the “10th Five-Year Plan†period, new product development focused on the power for automobiles, construction machinery, motorcycles, ships, and railway locomotives, and its center began to address emissions issues.
Gasoline engine generally adopts closed-loop electronically controlled multi-point injection to achieve accurate control of air-fuel ratio, plus three-way catalyst to meet Euro II, Euro III emission requirements, and adopt advanced technologies such as multi-valve and variable valve lift in structure. The engine performance is optimized.
The diesel engine meets Euro II requirements through the optimization of pressurization and intercooling, fuel injection system and work process optimization, and some also use electronically controlled high pressure common rail fuel injection system, exhaust gas recirculation, multi-valve, and variable turbocharging technology. We are ready to meet Euro III emission standards and further product upgrades.
The single-cylinder diesel engine for agricultural machinery has achieved results in weight reduction and noise reduction, and basically meets the emission standards for non-road internal combustion engines.
Relevant experts believe that the most gratifying is that the domestic electronic control development software and hardware platform has been established, and the research and development of the high pressure common rail fuel system has been tested and the electronic control technology has made breakthrough progress.
Look at joint ventures and cooperation. According to incomplete statistics, only the diesel engine major projects include: Chaoshan Diesel Introduces Nissan QD32 Diesel Engine; Shaanxi Diesel Introduces 12/16PA6BSTC Diesel Engine; Shangchai and Hino Jointly Produces P11C and J08C Diesel Engines; Heavy Truck, FAW and Volvo Jointly and Jointly Produce 9~13 l diesel engine; FAW Dachai introduced Deutz 4 to 7 litre diesel engine; Liuchai imported US U.S. 2.5 to 8.7 liters diesel engine; Dongfeng and Cummins joint venture to produce B, C, and L series diesel engines; Shifeng joint venture with Yanmar to produce single-cylinder diesel engine; Shanghai Dongwei and Japan Denso have jointly invested in the production of fuel injection pumps and injectors; Wuxi Weifu and Bosch have jointly invested in the production of electronically controlled high pressure common rail systems; Shanghai Lianyi and FAW Fourth Ring jointly with German Man Hummel produced filters.
In the manufacturing process, during the “10th Five-Year Plan†period, the internal combustion engine industry in China has also been promoting the best period in recent five-year plans. The manufacturing level of large and medium-sized enterprises in the industry has increased rapidly. Currently, thin-walled high-strength casting technology is used. Precision casting technology, flexible and semi-flexible mechanic technology and online automatic detection technology ensure the consistency of high-quality specialized mass production products.
In product design, companies generally adopt CAD/CAT/CAM technologies, and many companies have implemented product data management (PDM) and enterprise resource management (ERP).
In short, both in terms of industry scale and product quality, the internal combustion engine industry has made considerable progress during the "10th Five-Year Plan" period.
Sharp decline in profits exposes structural contradictions
Since the development of the industry during the “Tenth Five-Year Plan†is so rapid, can the decline in industry profits last year be seen as an accident? It is generally believed that the shrinking of profits is caused by the increase of raw materials and oil prices and the reduction of prices by the OEMs. It seems to have nothing to do with the industry itself, but some senior experts do not think so.
Ni Hongjie, chairman of the China Internal Combustion Engine Industry Association, analyzed: “The fundamental reason is that some structural contradictions and problems that restrict the development of the internal combustion engine industry have not been solved. From the perspective of the industry as a whole, the internal combustion engine companies’ product structure, corporate organizational structure, process equipment level, and operation management level There are some problems in varying degrees in terms of innovation and development capabilities and personnel quality."
Experts believe that among these problems, three are the most prominent. First, the overall size of the industry is not small, but the levels are uneven and there is no internationally competitive product. The output of some internal combustion engine products in China ranks first in the world. For example, single-cylinder diesel engines and motorcycle engines rank first in the world. Multi-cylinder diesel engines and multi-cylinder gasoline engines also have a certain scale. Overall, however, the internal combustion engine products in China are both autonomous. If intellectual property rights are internationally competitive, they are basically not.
The second problem is that the capacity for independent development is weak and the capacity for innovation is insufficient. The high and new technologies still rely on foreign countries.
China's internal combustion engine industry, especially vehicle engines and marine engines with medium and low speed and high power, have shortened the gap between water products and foreign advanced products through the introduction of technology. However, due to the general lack of high-level scientific research management personnel in enterprises, the basic research is backward, and the technological innovation capability of enterprises is not high. The lack of investment in research and development for new products and new technologies of enterprises determines that we can only follow other people at present. The key technologies are limited by people and it is difficult to master the cutting-edge technologies of internal combustion engines, such as electronically controlled high-pressure injection technology of diesel engines, new combustion theory, and Control technology, new power technology, etc.
At present, the high-end products and technologies in the industry come from foreign countries, especially the development technology of car engines, electric control technology, high-reliability diesel engine supporting technology for large-scale construction machinery, and the key components and components that are matched with them. These high-end technologies and products Very few independent intellectual property rights. Under this circumstance, China's internal combustion engine products are unavoidably positioned at the low end in both domestic and foreign markets.
The third problem is that repeated construction is serious. After the "10th Five-Year Plan" construction, the product concentration of some of China's large enterprise groups has increased, but the phenomenon that the products of the same grade and performance are basically duplicated still exists. The repeated construction of single-cylinder diesel engines and motorcycle engines is the most serious, and small gasoline engines are also following suit.