The engine will continue to grow steadily in the second half of the year

According to the “National Monthly Sales Report of Internal Combustion Engine Industry” published by the China Internal Combustion Engine Industry Association on July 14, the cumulative sales volume of commercial vehicle internal combustion engines in the first half of this year was 2,083.8 thousand units, an increase of 0.78% year-on-year, and the growth rate dropped significantly. It is worth noting that from March onwards, the diesel engine market has been showing a significant decline, which is in stark contrast to the steady growth of the gasoline engine market.

Large environmental impact industry growth decreased significantly

In the first half of this year, the truck market and large and medium-sized bus markets performed poorly. Compared with last year, both production and sales have declined, and the power of truck engines and large and medium-sized passenger cars that are associated therewith is naturally affected.

According to statistics, Yuchai’s first-generation passenger car sales totaled 305,410 units in the first half of the year, an increase of 2.41% year-on-year, an increase of leading industries; trucks’ first power Weichai’s cumulative sales totaled 274,117 units, a year-on-year decrease of 1.59%, and the situation in the truck industry was even higher than that of passenger cars. Severe is not unrelated.

The situation of light-duty diesel engines was even more severe in the first half of the year. It was reported that sales of most light-duty diesel engine manufacturers fell in the past two months, and the sales volume of individual companies dropped by as much as 80%, even more severely and even completely stopped production.

According to analysis, the major reason for the decline in sales volume of light diesel engines is that as the implementation of the National IV emission standards has increased, most truck companies have previously discontinued production of Light Engines of State III or even State II, while the price of Light Trucks of State IV has been too high. Consumers can't accept it for a time, so there are no orders.

“Over the entire first half of the year, although the overall performance of the industry was fairly stable, the development situation is still worrying.” Zhang Xiangdong, deputy general manager of Dongfeng Chaoyang Chaochai Power Co., Ltd., told the reporter of “Commercial Automotive News”: “Our company In the first half of this year, for example, the sales volume remained stable and basically reached the expected level, but after entering May, the sales volume was not very satisfactory. This was mainly due to the sluggish domestic economic environment, and the market’s spending power was limited to some extent. The increase in the cost of car purchases brought about by IV emission upgrades has caused many end-users to adopt a wait-and-see attitude, which has brought about no small impact on the engine industry.”

In addition, Zhang Xiangdong also said that the auto companies have recently introduced self-produced engines, which has also brought a big impact on the sales of the engine industry.

“From January to June this year, the overall sales volume of the industry saw a slight increase, but compared with the overall stable performance of the market, Shang Feihong’s performance in the first half of the year was relatively satisfactory, with sales increasing by about 30%.” SAIC Fiat Red Yang Hanlin, deputy general manager of Rock Power Engineering Co., Ltd., said: “This is mainly due to the effectiveness of our product mix adjustments. With the implementation of China IV emission upgrades, the sales of high-end engines have increased significantly.”

Yang Hanlin further stated that the main growth point of sales of Shanghai Philippine Red from January to June is also reflected in the segmented market of light passenger supporting power. With the acceleration of urbanization in China, many large and medium-sized cities need more compact and flexible light passengers to take on the tasks of connecting and transporting microcirculation within the city and solve the travel problems of the people’s “last mile”. As a result, the market's demand for light passengers has increased significantly, and at the same time it has driven the sales of engine companies in this segment of the market.

Specific to the regional market, according to reports, in some large cities or coastal cities in economically developed areas, Dongfeng Chaochai and Shanghai Philippine Red have good sales in the first half of the year. The reason for this is that the economic conditions in these developed regions are slightly better and the consumer market funds are more abundant, which has led to the growth of the engine market.

The second half enters the adjustment phase

In the second half of the year, as the deadline for the full implementation of China IV emission standards is approaching, the engine market will enter the stage of product structure adjustment.

Zhang Xiangdong told the "Commercial Automotive News" reporter: "As affected by the overall domestic economic situation, in the second half of the year, the engine market will not show too much growth, but will continue to maintain relatively stable development."

"In the second half of the year, various engine companies will prepare for the forthcoming implementation of the State IV, and there will be some new products introduced, and the original products within the market will also undergo a significant upgrade to adapt to the development of the future national IV market." Yang Hanlin Analysis: According to past practice, the third quarter is generally the off-season sales of the engine. After entering the fourth quarter, the sales situation may be better. At the same time, due to the impact of emission upgrades next year, sales will increase compared to the first half, but the difference will not be Great.” At the same time, he expressed optimism about completing the company’s annual tasks and believed that there would be no “too big problems”.

In addition, according to the China Association of Monthly Reports, the first half of the year saw the largest increase in the number of gas-fired internal combustion engines, which was an increase of 15.75% year-on-year. Gas engines continued to prosper. In this regard, Zhang Xiangdong said that the company entered the gas engine market is relatively late, the current sales volume is not very large, but the company attaches great importance to the development of new energy markets, the future will certainly increase investment in this part of the market. Yang Hanlin also expressed his esteem for the gas engine market, and stated that Shanghai Philippine Red has a corresponding plan and will launch corresponding products in due course.