The engine company takes aim at the EGR high pressure common rail engine and starts to reduce prices

"Everything about the research and development of new products, we will not be interviewed for a while." A few days ago, Yuchai related media contact person told reporters. What the reporter consulted with her was the country's second-generation product, which is currently in the media's focus.

According to industry insiders, the so-called State II III refers to the in-line pump + EGR (hereinafter referred to as "EGR") engine developed by companies other than CNHTC. The reason why these companies prefer to call it the second generation of the National III, the main purpose is to distinguish between EGR of China National Heavy Duty Truck. This is actually a word game.

Since the initial opposition to EGR products and the commencement of research and development of EGR products, it is apparent that the market has prevailed in the contest of the country III heavy truck emission control technology route.

Pursuit and cold

In order to meet the new requirements of the State III standard, domestic heavy truck manufacturers have already taken precautions and have successively introduced new heavy trucks that meet the national III standards.

At present, from an international point of view, emissions to meet the National III standards mainly include the following technologies: First, high pressure common rail technology, and second, monomer pump technology, and third, pump nozzle technology. At present, most engine companies such as Weichai, Shangchai, Yuchai, Chaochao, Cummins, Xichai, and Dachai use common rail technology and single pump technology.

CNHTC adopted the "non-mainstream technology" route and won the top spot in this round of competition. China National Heavy Duty Truck's independently developed EGR engine has the advantage of low cost. Compared with the National II car, the price of the EGR heavy truck only increased by 10,000 yuan. Compared with the State III heavy truck equipped with a high pressure common rail system, the EGR heavy truck price is about 15,000 yuan lower.

Guo Huanan, of CNHTC Organization Propaganda Department, told the reporter: “The engine adopting high-pressure common rail technology is priced higher than 10,000 yuan for the EGR engine. Domestic oil products have high sulfur content and can easily block the nozzle opening, which objectively increases the number of repairs. When the high pressure common rail engine is being repaired, the technical level of the equipment and the operator is required to be relatively high, while the core technology of the EGR engine is in our own hands, the production capacity is not limited, and the maintenance is convenient and the demand for oil products is low. More in line with national conditions."

With obvious price advantages, China National Heavy Duty Truck heavy truck sales soared. In July alone, more than 5,000 heavy-duty EGR trucks were sold. According to statistics from the "China Automotive Industry Production and Sales News," China Heavy Duty Truck produced 5,538 heavy-duty vehicles (including incomplete vehicles) in August this year, an increase of 14.02% from the previous period. The contrarian growth of China National Heavy Duty Truck III Heavy Duty Trucks shows that after undergoing the short-term adaptation of the emission standards, its electrically-controlled inline pump + EGR technology has taken the leading edge in the competition with the high pressure common rail technology route due to its cost/performance advantage. Cheaper prices also give consumers a lot of benefits in the process of emission upgrades.

In contrast, the sales of heavy trucks equipped with high-pressure common-rail engines are dismal. Manager Jin of Jinzhou Jinyuan Mechanical and Electrical Equipment Co., Ltd. told reporters that although there are many people who inquire about high-pressure common rail heavy trucks every day, there are few real orders, and the company's agent of a brand high pressure common rail heavy truck only sells for 2 months. Vehicle. Huang Dejun, manager of the heavy truck dealership in Lu'an, Anhui Province, continuously provided feedback to the manufacturers requesting replacement of the EGR engine.

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High pressure common rail engine price cuts

In this technological route market competition, the sales figures of many domestic heavy-duty truck companies are embarrassing. Some companies that have always liked to announce sales figures to show their performance have mostly chosen silence recently.

In September, heavy-duty truck companies equipped with high-pressure common-rail engines finally could not hold back, and they all cut prices and EGR heavy trucks to seize the market.

The heavy-duty common rail heavy truck of Shaanxi Zhongqi Heavy Truck Co., Ltd. reduced its price, and the price cut ranged from 1.5 to 16,000 yuan. The company responsible for market research confirmed this news to reporters. This unrestrained move immediately triggered a market chain reaction, and heavy-duty heavy trucks such as Futian Auman and SAIC Iveco Hongyan had loosening prices. It is understood that the Liberation Trade Corporation and Dongfeng Liuzhou Automobile have announced price cuts, and Dongfeng Commercial Vehicles is also discussing with Cummins the issue of price cuts. For the price cuts of Auman heavy truck dealers, the Auman brand owner first denied the possibility, and then said that the dealers would take some promotional measures according to market conditions.

The price reduction range of 1.5~1.6 million yuan has already solved the price advantage of EGR heavy trucks. It is understood that the main reason for the price cuts of Shaanqi, Auman, and Hongyan is that they have implemented a price reduction promotion for a certain domestic branded engine that was fitted, and the downstream auto plant responded immediately. The proprietor of the propaganda department of the engine plant is not willing to disclose the price reduction situation to reporters, but only said that it may be the behavior of the market department. According to relevant person in charge of Futian, due to cost constraints, price cuts are only short-term actions to seize the market and are expected to last about two months.

Many engine companies aim at EGR

For engine companies, developing EGR heavy trucks is a long-term solution.

The reporter asked some of the engine companies for information on the development of EGR engines. Most companies are very familiar with this. An informed source from Yuchai told reporters that the company’s EGR heavy-duty engine is still in the testing phase. He said: "Companies are reluctant to announce information on the development of EGR engines because EGR technology is still in a sensitive period and should not be publicized." It is reported that Yuchai plans to use EGR engines to hit the domestic market after product development. High pressure common rail and single pump engines are mainly used for export.

According to relevant sources close to Yuchai, Weichai, Shangchai, and Xichai, these companies are all developing EGR engines. The development cycle is about 3 to 6 months, and it will be available at the end of this year. According to time projections, the price cuts and promotions of high-pressure common-rail engines were just over.

For EGR engines, the head of the China Internal Combustion Engine Industry Association believes that “the market is the only factor that determines the existence of technology. Since EGR engines can meet emission standards, why not allow companies to produce? If you use high pressure common rail systems, you’re Markets are given to others and controlled by others, while the development of EGR heavy-duty trucks can provide fuel system manufacturers with 2 to 3 years of independent development of a more stable fuel system that meets China IV emission standards, and will not allow Chinese companies to emit emissions. The 'flashing back' in the transition of the standard will also prevent China’s related companies from suffering extreme destruction in a few years time, which is also beneficial for multinational companies to reduce the price of high-pressure common rail systems.”

However, these companies that subsequently developed EGR also face a higher threshold. The relevant national authorities require that the new State III products be tested as durable as the National IV engine to solve problems such as stress, wear, and reliability.

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