The heavy-duty engine market in June has entered the traditional off-season. However, the news that Fukuda Heavy Trucks and Cummins produced heavy-duty engines has rekindled the market.
Although Foton and Cummins have long cooperated in the field of light engines, the cooperation between the two sides in heavy-duty engines has caused quite a stir in the industry. As the No. 4 seller in the heavy truck market, Futian joined the ranks of self-built heavy-duty engines. If this heavy-duty engine hits the market, it will undoubtedly intensify competition in the heavy-duty engine market and threaten independent engine companies such as Weichai and Yuchai. development of. Cummins, on the other hand, is clearly confident that this heavy-duty power will be built specifically for the Chinese market. Cummings Marketing Communications Department Zhao Hongmei told reporters that Cummins developed this engine for the Foton heavy truck, is entirely based on customer requirements, in order to meet the conditions of the Chinese market, the development of road conditions and design.
Although the new engines still need to be introduced into the market for a while, people have begun to speculate about the impact of the two, which will have a significant impact on the future market pattern of heavy-duty engines. As the traditional big customer of Weichai in the heavy-duty truck market, Futian’s choice will be significant. Will Weichai’s dominance be changed, and will Yuchai’s efforts to expand the heavy truck market continue to survive? For a time, various conjectures can be heard.
Independent engine companies calmly respond
For Futian and Cummins to hold hands in the heavy-duty engine field, Weichai was obviously expected and fully understood. "A lot of years ago Weichai predicted such changes in the market. This is the law of the development of the industry. Weichai will not change the trend of the industry, but will actively follow the trend and seek development that is more suitable for the needs of the company." Vice President, Weichai Power Li Shaohua said in an interview with reporters that vehicle manufacturers are their own power products, which is an industry trend that independent engine companies must face. Weichai has already adjusted its product structure and market structure a few years ago. In response to changes in the market, we seek to become a global, technology-leading full-range, full-range powertrain supplier. "At present, the heavy truck market, Weichai's share is still stable at about 36%, but the company has successfully achieved a full force in the 5L ~ 10L engine market." Li Shaohua said.
However, this does not mean that Weichai will ignore the changes in the market and give up its own market. On the contrary, since the beginning of this year, Weichai has made frequent moves in the market. In January, Weichai and JAC Heavy Truck formally established a strategic cooperative partnership. On May 4, Futian and Weichai signed a new round of comprehensive cooperation agreement. On June 5, Weichai and the Universiade Heavy Truck held a strategic cooperation contract in Weifang, Shandong Province. ceremony. At the cooperation ceremony with the Universiade Heavy Trucks, Tan Xuguang, Chairman and CEO of Weichai Power, stated that Weichai will provide customers with the most cost-competitive, core technology-competitive, and quality-competitive products to help the two parties achieve truly win-win results. . It will be self-evident that the general business partnership with the vehicle customers will be promoted from an ordinary business partnership to an intimate strategic partnership. Weichai will lay down its “body segmentâ€, strengthen the maintenance of customer relationships, and consolidate its intention in the heavy truck market share.
Li Shaohua also revealed that in the strategic agreement signed between Weichai and Futian, it was clarified that Futian will continue to use Weichai products in heavy trucks, and will continue to cooperate in light trucks and other fields. “Weichai’s market share in the heavy truck market may decrease in the future, but benign competition is also beneficial to the development of the company.†He said that the deputy general manager of Yuchai Sales Co., Jiang Dongming, also stated that in the face of the autonomy of the heavy truck business powertrain, Independent engine companies will certainly be subject to certain shocks, but the new engine joint venture projects generally require an adaptation period of 3 to 5 years in terms of cost and localization. In the short term, the impact on Yuchai is not significant.
Wei Anli, deputy secretary-general of the China Internal Combustion Engine Industry Association, was more calm about this: “There is nothing to worry about, and the market will make choices to achieve balance.†Wei Anli believes that although the excess of heavy truck industry in China is a very blind surplus, The industry reshuffle and competition triggered by surplus will help promote the technological progress and further development of the industry. “We must dare to let go and compete, and competition helps companies to see their own gaps and gaps early, and is more conducive to the overall progress of the industry.
The impulse to drag the vehicle powertrain investment <br> <br> independent engine business rather than worry about the living conditions, perhaps we should be concerned about in the past few years, due to the expansion of automobile companies on impulse engine powertrain projects caused by the "sequela ".
In 2013, China’s heavy truck sales reached 774,000 vehicles, an increase of 21.7% over 2012. This year, many heavy-duty truck companies expect this year's sales to be around 700,000. However, because some heavy truck companies are accustomed to the high-speed development of the heavy truck industry in the past, they have launched or augmented the production capacity of powertrains. As early as 2010, the production capacity of heavy-duty engines reached 2 million units. Now, the industry reshuffle is inevitable.
Some experts pointed out that in the market that has continued to decline in the past few years, these newly-entered heavy-duty engine brands cannot compete with old brands such as Weichai and Yuchai in terms of cost, technology, market, product consistency, and brands. Supported by complete vehicles, the annual sales volume is still around 2,000 units. Not only is the input-output ratio of the project far out of balance, but it also has a tendency to drag down the profitability of the entire vehicle.
As a field with high thresholds for capital, technology, cost, and quality control, these heavy-duty truck companies that had previously actively developed heavy-duty engines are also faced with a large amount of technology R&D investment that will continue to be required during the upgrade of the product country IV and the country. Bear the cost pressure from the market downturn. Jiang Dongming believes that although the engine as a core component plays a key role in the increasingly fierce market competition for heavy-duty trucks, the demand for self-owned engines from competent manufacturers is also urgent. However, the engine is in terms of product technology, talent reserves, and funds. The investment is huge, and it is difficult for the general enterprises to bear, especially the development stage of the Fourth and Fifth National Products. "If the company's future sales cannot enter the top four of the industry, it will face the risk of going out." Li Shaohua believes that for heavy truck companies with annual sales of less than 100,000 vehicles, the engine project is very risky.
In recent years, foreign heavy-duty engine brands such as MAN, Daimler-Benz, and Fiat Power are also emerging as a new force in the heavy-duty engine market, making the market's competitive situation even more volatile. How long does it take for these foreign “Monks†to read “local adaptation� This “review†will explain how the local engine companies will once again exert their advantages. Consolidating and expanding their own markets will determine the future market development.
It can be imagined that the competition in the future heavy-duty engine market will be more complex and full of variables, and the formation of a new pattern will still require the final verification of the market.
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