China's 4th Assault on Light-duty Diesel Engine Production and Sales Stagnation


In the summer, it came to the off-season of engine sales. Lighter than the traditional off-season is the light diesel engine market.

At the end of June, an engine company sales department official told reporters that in the two months, the company's light diesel engine sales decreased by about 80%, the whole year is expected to drop by 70%, and orders for the second half of the year. In a survey interview, the reporter found that the decline in sales of light-duty diesel engines is not an isolated phenomenon. In the past two months, the sales of most light-duty diesel engine manufacturers have fallen. The sales volume of individual companies has dropped by as much as 80%, and even more serious ones have stopped production completely.

Industry experts told reporters that the major reason for the decline in the sales of light-duty diesel engines was that the majority of truck companies had been equipped with the National 3 or even the 2nd National Standard Light Machines. With the implementation of the National IV emission standards, the country’s second light machine stopped production. The price of the National Fourth Light Truck was too high and consumers could not accept it at the moment, so there was no order.

80% reduction in production and sales of light diesel engines in the country <br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br> He is not optimistic about the sales situation in the second half of the year and believes that if one-fifth or one-sixth of sales in previous years can be achieved, it is a matter of great fortune. Another person in charge of the sales department of the engine company told reporters that the company's light diesel engine sales fell by nearly 60%. In addition to 40% of the production volume sold to non-road vehicle companies, it also produces a small amount of light-duty diesel engines that meet the country's four emission requirements to meet the needs of light truck companies.

According to the person in charge of the engine company, during the country's 2nd and 3rd national emission upgrade stages, the enforcement of light-duty truck emission upgrades is not strong. Some enterprises that strictly implement the national emission standards suffer from cold competition in the market competition. These truck companies started to produce the second-model car models. Sales, diesel engine companies followed by the production of two emissions models. Since the CCTV "Fake Country IV" news broke out, Guangzhou, Beijing, Chengdu and other places have strictly implemented the State IV emission standards, and light truck companies are afraid to sell the relevant models. Diesel engine companies' orders are unavoidably declining.

An industry expert believes that the country's four emission upgrades will inevitably affect the development of the light engine industry, and some small engine companies with poor technical capabilities will face restructuring fate.

If the strict implementation of the enterprise will eventually benefit from the four countries <br> <br> upgrade and light-duty diesel emissions if the fate of irreconcilable? What is the outlook for the industry that is facing the desolate years? “Emissions upgrading is not incompatible with the light-duty diesel engine industry.” A person in charge of a light-duty diesel engine that meets the country's four emission standards told reporters, “Although the sales volume has gone down, the profit of China’s four light-duty diesel engines has risen. The state’s four light-duty diesel engines are technologically advanced and save fuel. The profit of the product is much higher than that of the National Second Machine. If the country has strictly implemented the National IV emission standard, the enterprise will eventually benefit."

On July 1st, JAC Motors held an swearing ceremonial meeting and took the oath. Since then, the light trucks have only sold four cars. Jianghuai announced that the National IV emission regulations have been implemented and that enterprises should be law-abiding. Before the national standards have yet to be adjusted, any “alternative” practices that are contrary to them have to pay a price. The determination of the light truck companies to implement the four national standards firmly has given the light-duty diesel companies a certain amount of assurance.

According to the China Federation of Logistics and Purchasing and the National Bureau of Statistics Service Survey Center, the China Manufacturing Purchasing Managers' Index (PMI) for June 2014 was 51.0%, up 0.2% from the previous month and 0.9% from the same period of last year. The index has risen for four consecutive months, especially in the most recent two months, and the new orders index has risen significantly.

Some industry experts believe that the development of China's logistics industry is promising. The demand for light trucks as urban logistics vehicles will continue to rise, and the development experience will be delayed for a short time. The sales of light-duty diesel engines will surely increase.

With the support of vehicle companies, the logistics prospects are promising. How long does it take for a light diesel engine to wait for a good harvest? "The production of the fourth-generation light-duty diesel engine in the enterprise will take about half a year," said a person in charge of the sales department of a light machine. He explained that enterprises have mastered the four-machine technology, but the key components and spare resources are insufficient. It is reported that at present, China's fourth-emission upgrade of medium and high pressure common rail technology is dominated by foreign companies such as Bosch and Denso. The supply of these products is in short supply; most of the domestic post-disposal systems are still in the stage of joint development and verification with the vehicle companies. complete. "Even if the product can be produced, it will take time for consumers to accept the National 4 Light Trucks. After all, the upgrade is twice as expensive as before the upgrade!" said another head of an engine company. He believes that as long as the state strengthens the enforcement of the State IV emission standards and persists in perseverance, enterprises will inevitably upgrade their products, consumers will naturally accept that light machine sales will certainly go up.

However, another corporate executive is more pessimistic. He fears that depending on the level of consumer spending in our country, it may not be able to accept the National 4 light trucks, and some people may buy medium and heavy trucks. This may lead to the merger or demise of 2.6 to 2.8 meters of light trucks, and the light diesel engines for this type of vehicle will also face the fate of sales reduction or elimination.

Companies gearing up for the country four government must do something <br> <br> an own-brand light-duty diesel engine business sales emotion, since China IV standards, multinational companies earn pours, independent enterprise sales decline. Is China's four emission upgrades really worth the price of its own brand light machine market share?

Another person in charge of an independent light machine manufacturing company introduced that consumers are waiting to see that the national light truck market has not yet been cultivated. During this period, companies are stepping up their efforts to develop and commission products with vehicle companies. "I hope it's not too late," he said.

In addition to strengthening their own efforts, companies believe that the government should also provide necessary support for the country's four emissions upgrades.

A person in charge believes that the country suddenly increased the implementation of the national standard, and many light machine companies can only endure the pain of the “Farth of Years” in sales. They will die first and prepare for the country. At the beginning of the promotion of State IV, the state should provide certain preferential policies for light truck users who purchase the country's four emission standards. He suggested that specific measures can be embodied in discounting or reducing the cost of passing and crossing bridges for the National IV emissions model. After consumers realize the advantages of the four national standard models in saving fuel, they will gradually cancel preferential policies.


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