China's automotive engine market is strong

Engine market reached 4.71 million units in 2005

In recent years, China’s auto market has developed rapidly. Driven by the entire vehicle market, engine production has increased from 1.56 million units in 1998 to 4.71 million units in 2005. At present, the Chinese automobile market, especially in the car market, is generally accepted by gasoline engines. Diesel engines in China mainly remain in the commercial vehicle market. Therefore, the growth of the engine market is mainly due to the rapid increase in the output of gasoline engines.

On the other hand, the gap between the total vehicle production and the engine output has further widened, which has increased from 80,000 units in 1998 to nearly 1 million units in 2005. The increase in this gap is mainly due to the fact that most of the joint venture brand cars use imported engines. . With the increasing consumption potential of China's auto market, more and more manufacturers are investing to produce cars in China, but key components such as engines are still imported from abroad.

In terms of engine production and sales, no matter whether it is a gasoline engine or a diesel engine in recent years, it has basically maintained a balance between production and sales, showing a healthy development. In 2005, a total of 4,710,661 automotive engines were produced, an increase of 8.65% over 2004. In the whole year, a total of 4,725,043 automobile engines were sold, an increase of 8.99% year-on-year. The annual sales rate was 100.31%. Sales volume was slightly higher than production and inventory was reduced. Among them, the annual output of gasoline engines was 3,433,652 units in 2005, an increase of 13.59% year-on-year; the annual sales volume was 3,447,713 units, an increase of 13.85% year-on-year. The annual output of diesel engines in 2005 was 1,274,560 units, a year-on-year decrease of 2.94%; the annual sales volume was 1,272,536 units, a year-on-year decrease of 2.51%.

From the current matching relationship between the engine and the vehicle in China, passenger cars and commercial vehicles have great differences in engine applications. Most passenger cars are mainly gasoline engines. Commercial vehicles, especially large and medium-sized commercial vehicles, are mostly based on diesel engines.

The market for passenger car engines varies

Gasoline engines with matching models can be divided into three main categories: First, gasoline engines for passenger vehicles; second, gasoline engines for mini vehicles; and third, gasoline engines for light vehicles and other models.

Gasoline Engines for Passenger Cars: At present, gasoline engines for passenger cars are the most rapidly growing and have a leading market share. With the rapid development of the sedan market, the increase in sales of gasoline engines for cars will show a further acceleration.

Gasoline Engines for Mini Vehicles: Micro-vehicle Engines With the huge market capacity of domestic mini-vehicles, they have occupied half of the domestic market in previous years, but in recent years, with the rapid development of the sedan market, market share has shrunk year by year, and micro-vehicle gasoline The situation in the engine market is showing signs of decline. At present, Changan Automobile (Group) Co., Ltd. and Harbin Dongan Automobile Power Co., Ltd. dominate the market of such engines.

Light-duty gasoline engine: Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd. and Shenyang Aerospace Shinko Group Co., Ltd. in light-duty gasoline engines are the most eye-catching developments. Its leading products are the 4G6 and 491 engines, although these two series engines The level of technology has fallen slightly behind, but there is still a large market for applications in light vehicles.

Changes in the pattern of commercial vehicle engines

The diesel engine market concentration is very high. Yuchai, Dongfeng, and Yunnei have produced 54.9% of the entire diesel engine market. The top ten diesel engine manufacturers cover almost all diesel engine markets. In recent years, Yuchai has developed rapidly and is currently the leader in the Chinese diesel engine industry. Its diesel engine production ranks second in the world and first in China. Dongfeng Motor Co., Ltd. suffered a drop in production due to the decline in overall sales of commercial vehicles last year. The FAW last year, diesel engine output fell 31.6%, out of the top three.

During the "Ninth Five-Year Plan" period, the support of automotive diesel engines for the automotive industry showed a very strong growth trend. A total of 2.66 million Taiwan-made diesel engines were produced, an increase of 67% over the "Eighth Five-Year Plan", which was the power of 2.66 million diesel engines. For 230.98 million kW, the average power is 86.8 kW, indicating that the low-power diesel engine occupies a major position in the growth rate of the entire diesel engine in China, which is related to the rapid development of the medium and light passenger vehicles in China in recent years.

With the strengthening of basic engineering construction in China, the demand for heavy-duty trucks and construction machinery is buoyant, and the demand for 210 hp-280 hp diesel engines will increase. The production of high-power diesel engine manufacturers such as Weichai, Yuchai and Dongfeng Cummins will therefore be achieved. Good income. However, there are still very few automotive diesel engines capable of producing more than 300 horsepower in China, mainly relying on imported engines to solve the demand problem. This is a development direction for the industry in the future.

The light truck market has maintained rapid growth in the past two years, among which diesel light trucks have dominated the market, with over 88% of the light truck market share, and their sales volume is much higher than that of heavy and medium trucks. It is also the main force that drives the new demand in the diesel engine market.

In terms of passenger car diesel engines, high-end passenger cars mainly use imported power or Dongfeng Cummins products. Currently, domestic diesel engines are mainly used for medium and low-grade passenger car products.

Domestic engine market will reach 5.35 million units in 2006

Domestic engines will continue to grow steadily in 2006. According to the forecast of the HC Network Automotive Market Research Institute, domestic engine production in 2006 will exceed 5 million units to 5.35 million units.

Before 2005, the domestic engine market presented the following main features: high industrial concentration; single product structure, and obvious homogeneity; and the “polarization” form of the diesel engine market was intensified. These characteristics will continue in 2006 and there will be no major changes in the short term. As China has clearly stated that the encouragement of independent research and development, together with the cancellation of local “minor-minded” policies, these policy orientations will inevitably lead to new features in the entire engine industry: environmental protection, energy conservation, and high-tech applications. In 2006, each engine manufacturer will intensify R&D efforts. In the next few years, more engines will be developed that are powered by clean fuel and independently developed by domestic automobile manufacturers or engine companies.

On the other hand, the overall engine industry's profitability has fallen. According to data from China National Internal Combustion Engine Industry Association, in November 2005, the profit rate of China's internal combustion engine industry decreased by 21% year-on-year, reaching the lowest value ever. It is expected that as the price of upstream raw materials continues to rise and the price pressure of downstream vehicle companies continues to increase in 2006, the downward trend in the profit rate of the engine industry will become more apparent.

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