"Insufficient production is the Cursor9 series engine, Cursor9 series only 30,000 units, the rest is the Nef series medium and heavy diesel engines." An executive of SAIC Fiat Powertrain Co., Ltd. told the "Commercial Automotive News" reporter. According to reports, the domestically produced Cursor9 is a 10L electronically controlled engine with a power of 460 hp.
The executive told the reporter that the division of internal and external supplies by SAIC Fiat Hongyan is only a preliminary plan. It is certain that the “overdue†60,000 units are not all supplied overseas, but also include the group’s foreign markets. "The current situation is still being planned. For SAIC, this is a brand-new project."
The "mystery" of SAIC Fiat Red Rock Engine is gradually unveiled
On June 15, SAIC Iveco Hongyan Commercial Vehicle Co., Ltd. was formally established. At the same time, SAIC Fiat Hongyan Powertrain Co., Ltd. was established.
It is understood that SAIC Fiat Hongyan will start production in October 2008, with an initial planning capacity of 100,000 units, 40,000 units for SAIC Hongyan Iveco, and 60,000 units for the Group's foreign markets.
Will the 100,000 new production capacity change the pattern of the heavy-duty diesel engine market?
An industry source told reporters: “Whether it can affect the industry structure depends on its key factors such as price, cost, and cost performance.†In the interview, the reporter learned that the biggest concern of domestic engine companies is that SAIC Iveco Hongyan will produce What are the conditions of product, product price, and performance?
Tan Xiuqing, an expert from the China Association of Automobile Manufacturers, said that the Iveco brand has a relatively high degree of recognition abroad and its performance is quite competitive.
The person in charge of the FAW Xichai sales company told reporters that the addition of SAIC Fiat Hongyan means that the industry has one more opponent and the competition will be even fiercer. A technical person in charge of FAW Daichai believes that the competition area of ​​SAIC Fiat Hongyan is mainly heavy-duty diesel engines. Since Dachai’s products do not have such high horsepower, they have little impact on Dachai. The reporter learned that the maximum power of the engines combined by Dachai and Deutz is only 300 hp. He told reporters that the competitors of SAIC Fiat Hongyan include Weichai, Xichai and Yuchai, which have the greatest impact on these three companies, especially the impact on the Steyr engines. It can be predicted that in the next two or three years, the competition for heavy-duty diesel engines will become more intense.
Over 70% of self-produced engine companies
In addition to SAIC Fiat Red Rock, which was recently established, on August 8th, Xi'an Cummins officially opened its doors and put into operation the Cummins ISM 11L electronically controlled heavy-duty diesel engine with an annual production capacity of 50,000 units. At this point, there are two engine manufacturers supporting mainstream heavy truck companies that will form production capacity next year. For the entire industry, after 2008, the heavy-duty truck engine market above 10L will face unprecedented fierce competition.
On January 1, next year, the sale of State II heavy-duty diesel engines stopped the change in the pattern of heavy-duty diesel engines. Du Fangci, an automotive expert, said that in terms of emission standards, the evolution from State II to State III is a hurdle, which requires a combination of technical and other enhancements, such as electronic control systems and common rail technologies. Therefore, whoever takes the initiative in the new round of engine upgrades means that it may change its position in the industry.
This reporter learned that the top 7 domestic truck sales have 5 self-built or joint venture engine plants, accounting for 71.4%. FAW Liberation has Xichai and Dachai supporting; SINOTRUK has two engine production bases: Hangfa and Zhangqiu; Dongfeng Commercial Vehicles has Dongfeng Cummins, and Renault dCi11 is also introduced. According to legend, Futian Auman has plans to build an engine plant and cooperates with Mercedes-Benz and Cummins. North Benz also has the intention to expand its share of the Huachao Deutz engine of Inner Mongolia Yiji Group. Just two or three years ago, only three of the top seven companies had their own engine factories, accounting for 42.8%.
A person in charge of Weichai said that the competition in the heavy truck engine industry will become increasingly fierce, and the technological content will become even higher.
Independent engine supplier pressure doubles
Major engine manufacturers of self-built heavy trucks are gradually becoming a trend. At the same time, engine companies that are attached to the main engine plant are gradually expanding their own sites and increasing the proportion of external support. For independent engine companies, the situation will undoubtedly become even more severe.
Relevant person in charge of FAW Xichai sales company told reporters that the proportion of Xcear's supply to the outside of the group is getting higher and higher, currently less than 50%, and it is expected to reach 50% in the future. Expanding the supply outside the group can increase the profitability of the company, and it also shows that the high degree of recognition of its products is a good thing for the company.
The relevant person of heavy truck hangs the hair factory to express, the proportion that hangs the hair to export now is less than 30%, if hangs the relocation to expand the production capacity, the proportion of export will expand.
Dongfeng Cummins also sells half of its products to the Group's external markets.
Yuchai, who has always intended to make a difference in heavy-duty engines, has already felt pressure. Li Tiansheng, general manager of Yuchai Machinery Co., Ltd. admitted frankly: “Yuchai has been paying attention to this issue.†There are a lot of heavy truck companies that have started to build their own plants, and competition for heavy-duty truck engines will become increasingly fierce in the coming years. I am sure I hope to have more products of my own. "But after careful analysis, we believe Yuchai still has a chance."
Li Tiansheng told reporters that foreign engines entering China have a localization process, which has won Yuchai time. At present, there is still a gap between domestic heavy truck engines and foreign engines in terms of reliability and production consistency. This is hampered by the quality level of the entire domestic components. After foreign products enter China, they must use localization to reduce costs, and they will also encounter the above problems in the process of reducing costs. In addition, Yuchai adopted the strategy of “users surrounding the vehicle factory†to encourage users to specify Yuchai’s engine when purchasing a car. At present, the Yuchai 10L heavy-duty machine is mainly supplied by Dongfeng. The two parties have always had a strategic cooperative relationship. Yuchai hopes to achieve the purpose of “breakout†and enveloping the Steyr models through the east wind.
In the interview, related people in Weichai told reporters that Weichai did not have much concern about this. In his opinion, heavy truck engine industry will not change much in these two years. Judging from the domestic situation in these two years, there has been no increase in the number of engine companies in the country, but there have been more joint ventures. However, from the point of view of foreign engine companies entering China, Cummins only has a foothold, which is after years of market development. Only gradually gained market recognition. He believes that if foreign engines want to enter China, it will take 5 years from the beginning of negotiations, signing cooperation agreements, and putting them into production to be accepted by the domestic market. It takes more time from localization to the start of price reduction and after-sales service construction. , "About 10 years." Therefore, this time difference left time for domestic enterprises to prepare.
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