The heavy truck industry's new army builds its own engine and faces great pressure


Heavy truck industry new companies Changan Heavy Duty Truck and XCMG recently announced their plans for an engine project: Changan Heavy Duty Trucks will invest 3 billion yuan to build an engine production line. After the Xugong Group's heavy truck project is completed, it will also have 50,000 high-power engines. With the production capacity, the two companies entered the heavy truck industry and announced the engine project plan on the basis of instability, highlighting the important position of the core power.

Juniors take the lead

Taiyuan Chang'an Heavy Duty Truck Co., Ltd. was formerly known as Taiyuan Southern Heavy Vehicle Co., Ltd., established in November 2007. In July 2009, the final assembly of the first phase of Changan Heavy Duty Truck started trial operation, including assembly of the vehicle assembly line, cab interior assembly line, and 16 sub-assembly areas such as engines, axles, and water tanks, all of which are intelligent and informatized. management. After the 28 professional stations have been operated at full capacity, the production capacity will reach 50,000 vehicles. As a new company, sales of Changan Heavy Duty Truck are not large. In 2010, Changan Heavy Duty Truck sold 3013 heavy trucks (including non-complete vehicles and semi-trailer tractors).

For Changan Automobile with heavy truck short board, Chang'an Heavy Truck is an important part of the Group's goal of becoming bigger and stronger and has received sufficient attention. In 2011, sales of Changan Heavy Duty Trucks will be 5,000. By 2012, sales of Changan Heavy Duty Trucks will reach 15,000 units, and sales revenue will exceed RMB 3 billion, entering the top 10 in the industry.

According to Xugong Group's announcement, after the XCMG heavy-duty truck project is completed and put into production, it can annually produce 100,000 vehicles, 300,000 axles, 100,000 transmissions and 50,000 high-power engines, achieving an annual sales income of 34.8 billion yuan. Yuan, tax 4 billion yuan.

Opportunity to challenge the pattern

At present, there are many domestic heavy truck companies, but few new companies have engine projects. In the heavy truck industry in China, besides FAW Jiefang, Dongfeng Commercial Vehicles, China National Heavy Duty Truck and other key enterprises, other heavy truck companies such as Futian Auman, Valin, and Universiade started from the assembly process and still purchase large quantities. engine.

Compared with the old-fashioned heavy-duty truck companies, the companies that have recently entered the heavy-duty field have obviously been radical in their attitude towards engine projects. Ji Rui United Heavy Industry Co., Ltd. was established in 2009 when Yuchai United Yuchai United Power Co., Ltd. was established near the factory. In the situation where the homogeneity of products tends to be more serious, heavy truck companies must have key components in order to form their own products. From this point of view, it is necessary and urgent to build engine projects. Avoiding being restrained on the engine is a problem that many heavy truck companies think about. In the spring of 2010, when the peak of market sales came, due to the lack of an engine controlled by itself, many companies did not dare to receive orders in large quantities and suffered a loss in the competition.

According to reports, during the busy season of market sales, the main engine of heavy-duty engines Wei Chai's engine is hard to find, and other heavy-duty diesel engine companies' products are in short supply. This has caused many heavy-duty truck companies to lose a lot of orders. Companies entering the heavy truck field, if planning and owning their own engines at the initial stage, will not be subject to human control at the most difficult stage of market promotion. In the stage of growth, there will be conditions to challenge the companies with similar sales. At the stage of product maturity, brand recognition and sales have greatly improved. It is not impossible for the backbone companies in the industry's first camp to impact. In fact, when the U.S. heavy trucks formally went offline at the end of 2010, one person in the company showed their desire to challenge the industry leader.

Faced with pressure

Compared with the benefits to the company, the risk of launching the engine project is also high. It is understood that the construction of the engine production line is much more expensive than the construction of the heavy truck assembly line. The quality control of the production line and the machining accuracy of the cylinder head cover are much higher than that of the assembly vehicle. The input of less than RMB 1 billion will not play any role. After the completion of the production line, there must be some sales support. According to the current market conditions, annual sales of 450,000 units are the break-even point. Among domestic engine companies, Shanghai Hino Engine Co., Ltd. sold only 22,000 units in 2010. However, because the engine uses a lot of imported parts and the price is close to that of imported engines, it can guarantee profits. In addition, JAC considers that it is too heavy for the production of engines to support its own packages. It is better to purchase engines before the sales volume reaches a certain scale. As a result, JAC light trucks use a large number of diesel engines. Only in the first two years when the emission standards were upgraded to State III, a production line for producing 4DA1 light engines was built.

For the project of the engine project, Changan Heavy Trucks acknowledges that there are certain risks in the engine project. The engine project is very difficult and demanding, and it is impossible to rely entirely on itself. Chang'an CNHTC should take the path of introducing technology. In addition, after the new engine is put on the market, it also faces user's cognitive problems. The domestic heavy truck users have already formed a certain brand recognition for the engine, and they agree with the engines of mainstream brands such as Weichai, Xichai, Yuchai, and Dongfeng Cummins. In order to open the market, new engine brands face heavy pressure. In dealing with engine projects, heavy truck companies should be sensible.

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