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The long-term emissions upgrade “war†has had a “washing†effect on China's internal combustion engine industry: Someone is born again, some are left behind, and others are stuck in order to survive.
For Shandong Huayuan Laidong Internal Combustion Engine Co., Ltd. (hereinafter referred to as “Huayuan Lai Dongâ€), the process of emission upgrade is a process of seeking new students under the double pressure of policy and market.
Xu Yunhe (second from right)
A huge year of stress
In 2016, Huayuan Lai's life passed through a difficult time: the main products spanned two markets, namely, light cards and agricultural machinery. Both markets suffered from turbulence caused by the switch of emission standards in 2016.
In the light card market, emission upgrades inevitably lead to a substantial increase in diesel engine prices, which makes diesel engines in the market competition in the absolute disadvantage, minor card matching market competition is no longer a competition with the industry, but gradually evolved into a diesel engine and gasoline engine Competition, this impact on the Huayuan Levitation diesel engine business is not too small.
"After upgrading to Guosi, the cost of the light card product for the diesel engine is more than 10,000 yuan more than that for the gasoline engine. For a certain brand truck, for example, the price of the diesel version is between 39,000 and 4 million yuan. With only 29,000 to 30,000 yuan and a spread of 10,000 yuan, for the primary user is a small card of a peasant, a town, or a small or medium-sized city resident, the difference of 10,000 yuan has a huge impact on users. After the stage, the trend of replacing the diesel engine with the gasoline engine is very obvious.†Xu Yunhe, general manager of Huayuan Laidong analyzed that, in this regard, Huayuan Lai made relevant statistics. “The state-owned country two stages, the diesel micro-card in the entire micro- The proportion in the card market is about 30%; in 2015, this figure dropped to around 8%. Therefore, our automotive diesel engine business is under tremendous pressure."
The market has shrunk dramatically, but the process of emission upgrading is still accelerating. On April 1, 2016, 11 eastern provinces and cities took the lead in implementing State V. The situation of Huayuan Laiwu was even more difficult.
“The country’s five minor card upgrades with gasoline engines will not increase its price, and the five models will still be sold at the national fourth price; for diesel engines, the increase in costs will be very significant. The cost of only one DPF will increase by 3,000 yuan.†said Xu Yunhe. In the competition with the gasoline engine, the diesel engine is completely at a disadvantage.
In the agricultural machinery sector, 2016 was the year when the non-road engine was switched from the second country to the third country. In this main market, Huayuan Laidong encountered another setback.
“According to the statistics from the China Internal Combustion Engine Industry Association, in 2016, sales of multi-cylinder machines supporting agricultural machinery fell by about 38%, and single-cylinder machines fell by about 57%.†Xu Yunhe said that the reason for the decline in the market was also caused by emission upgrades. With regard to the increase in costs, "after upgrading the country three, the cost of models below 50 hp will increase by around 2,000 yuan, and the cost of 50 hp models will increase by 5,000 yuan. The enthusiasm of users to buy is not high."
Under the attack from both sides, Huayuan Lai's sales revenue fell by 18% in 2016, and the pressure was blowing.
Under pressure to seek a breakthrough
Heavy pressure on the shoulder, Huayuan Laidong began to seek the road to breaking. The development of K15 is an important deployment of Huayuan Laiwu to meet the challenges of the market.
To strive to be the leader in the diesel engine industry segment is the positioning of Huayuan Laidong. Under the guidance of this positioning, Huayuan Lai focuses on products below 2.0L, which has achieved good results in the diesel micro-card industry. Achievements. After the emission upgrade, the traditional advantages of Huayuan Laiwu are no longer met by the impact of petrol micro-cards. Therefore, product upgrades are imminent.
“We have started to investigate since 2012. The development trend of the automotive industry, on the one hand, is guided by emission upgrades, and on the other, it is affected by fuel consumption limits. This is the two major challenges facing the automotive industry.†Xu Yunhe said that considering emissions Both the requirements of fuel consumption and after investigation, Huayuan Lai developed K15.
It is reported that this product is Huayuan Lai digestion and absorption of advanced European technology, and Tianjin University of Internal Combustion Engine Research Institute developed in cooperation, is a gap filling the domestic diesel engine market products.
The development of K15 is a breakthrough for Huayuan Laidong. At the same time, K15, which was developed using key domestic components, has set a benchmark for the localization of the diesel engine industry chain.
All the key components are made in China, and the development of K15 has therefore undergone continuous hardships. "The hardest part is the number of DPF calibrations," said Xu Yunhe.
As the regulations stipulate that D5 must be used for the N5-compliant vehicles, the DPF that has been monopolized by foreign companies for a long time becomes the Kaner that cannot be bypassed in the K15 development process.
"On the common rail system, Huayuan Laidong has always insisted on taking the localization route from the fourth stage of the country, and the calibration of the DPF, in particular, is given to foreign companies. This is not only expensive but also has a long period. Therefore, we have chosen Cooperated with Liaoning Xinfeng, which has DPF calibration capability, and together with post-processing enterprises and supporting automakers, they finally achieved a breakthrough in the DPF calibration.†Xu Yunhe said that Huayuan Laidong is also the first domestic company to implement DPF. The nationwide calibration company has passed this threshold and laid the foundation for the future development of Huayuan Laidong. “The breakthrough in this work has created the conditions for us to continue to maintain our superiority in the N1 category.â€
The success of Huayuan Lay in DPF calibration also has a symbolic significance for the development of the national diesel engine in China. However, the domestic development process of K15 also allows Xu Yunhe to see that the auto parts industry in China has developed in recent years. Progress is also very rapid, but high-quality resources are still tight and scarce. To achieve localization of engine development, it is necessary for parts and components industries to accelerate the pace of development and narrow the gap with international advanced parts and components manufacturers.
At present, Huayuan Laidong K15 has completed the matching work with a number of vehicle companies, and has entered the declaration declaration stage and will soon be able to market.
Vehicle Leading Relevance Development
In terms of product and market strategy, Huayuan Laiwu insisted on the use of automotive engines to lead the technological advancement, solidified the development base of agricultural engines, expanded the market with general-purpose mechanical engines, and adopted an associated development strategy.
In terms of vehicle engines, apart from sticking to the market results of diesel engines, Huayuan Laidong also complied with the trend of replacing diesel engines with gasoline engines. Based on the K15 diesel engine platform, the K15G gasoline engine was developed.
“Our K15G gasoline engine is not the same as other people's development ideas, because the slight card is mainly used for load, so the speed requirements will not be too high, we are mainly in the pursuit of low-speed high torque, so that vehicles can Loads and climbing can save fuel," said Xu Yunhe.
In addition, in the automotive engine segment, Huayuan Laiyin also developed the 4L22GN engine for both gasoline and natural gas. In addition, Huayuan Laiwu also paid close attention to the development of new energy vehicles such as increased range and hybrid power. Expand the possibilities for more automotive engines.
Xu Yunhe said that although the automotive engine will not become the heaviest part of the Huayuan Laiwu business segment, the R&D of the automotive engine platform is the basis of all other business segments.
With the advantage of the platform of the car engine, Huayuan LaiZhong actively expanded the non-road, general machinery, tricycle and other related markets. Faced with tremendous pressure from the market, Huayuan Laidong has conducted many explorations in market expansion, and some blank markets have been continuously developed.
“In terms of market expansion, we have adopted the automotive engine platform as a basis to adapt the engine to market requirements such as agricultural machinery and general-purpose vehicles to improve its market applicability.†Xu Yunhe said that the benefits of doing so can not only expand the associated market, but also It is possible to share the huge development costs of automotive engines through these markets.
After the new products represented by K15 were introduced to the market, Xu Yunhe had confidence and confidence in changing the passive situation of last year. He hoped that in 2017, Huayuan Lai Motor could achieve the goal of using 30,000 vehicles and 80,000 non-road vehicles.