Decoding Yuchai: Brave and Challenger in China's Heavy-duty Engine Market

Now the heavy truck industry seems to have had a hard time restoring the glory of previous years. In the current overcapacity situation in the industry, the competition is getting more and more intense. So what impact does this have on the industry? What kind of strategy will Yuchai take? What are the new advantages?

Product advantages are increasingly prominent

The product is king. After years of cultivation, YC6K, YC6MK, and YC6L have become the heads of Yuchai's heavy-duty engine products. The products cover the spectrum of mainstream products such as 9-13L. Previously, there were both diesel engines and gas engines. In 2015, Yuchai launched a dual-fuel heavy-duty engine.

Yuchai: The brave and innovator in the heavy-duty engine market
Yuchai: The brave and innovator in the heavy-duty engine market

The joint truck road test on the dual-fuel engine DPCI dual-fuel engine YC6K was completed in August last year and will soon be on the market. Trucks equipped with this engine can burn only diesel fuel in areas where LNG supply is insufficient, and can make cleaner and more economical LNG fuels co-combustion with diesel fuel in regions with sufficient supply of LNG. Economic and environmental protection have been further improved.

The legendary product in this heavy-duty engine field is not only used in heavy truck applications. It is also welcomed in the field of passenger cars.

On March 6 this year, Yuchai United Power's first passenger car engine was successfully ignited in the pilot plant of the Beijing Ouhui Bus Factory. The YC6K13N gas engine that was successfully fired was the first prototype in the Beijing Public Transport Allenway Company's bidding project in 2014. There will still be hundreds of orders to be delivered in the future. The YC6K will be installed on a 13.7-meter travel version of the bus to contribute to Beijing's public transportation. The successful ignition of this engine marks the first step in Yuchai's 13L engine product application to the passenger car engine.

In addition, since 2002, vehicles equipped with Yuchai's YC6L series engines have entered the market. In the market test of more than 10 years, this engine has still been widely welcomed by users and has become a model for the lightweight of heavy-duty engines.

Good at turning good at technology

In addition to having strong technical advantages, the current fierce market competition is also beneficial to Yuchai. Because under the new normal economic conditions, many OEMs are undergoing strategic contraction and adjustment. Compared with before, the willingness to invest in the engine may not be so strong. They expect more cooperation and create more competitive products.

In comparison, Yuchai has a strong competitive advantage. As an independent engine manufacturer, Yuchai's long-sleeved dance makes it easier to integrate resources and maintain the balance of the industry's ecosystem. As customers, especially OEMs, they are also reluctant to develop an opponent that has both cooperation and direct competition; from the current In terms of industry development, the facts have proven that independent engine plants have unique advantages over other engine plants, and it is not only that vehicle manufacturers rely on them. Engine manufacturers can sit back and relax.

In the course of engine production over the past decades, Yuchai forged the most complete engine spectrum of its product spectrum. In the future development, Yuchai will only need to integrate resources and highlight its advantages. With years of deep plowing, it will surely be possible in the world. The engine field has a place.

At present, we also see that Yuchai has been advancing this work. In March 2015, a major product improvement plan has been put into action. It is believed that Yuchai will have more and better heavy-duty engine products available.

For a broader field

Yuchai's electric power market is one of the areas in which Yuchai's heavy-duty engines have become a major force in recent years, and has also achieved very encouraging results.

In 2014, sales of marine electrical products increased significantly year-on-year. Ships equipped with Yuchai's heavy-duty engines have made major breakthroughs in large-scale customers such as the inland river transport ship market on the Beijing-Hangzhou Grand Canal, the Yangtze River Basin, and the Xijiang River Basin, as well as railways and real estate.

In addition, Yuchai's stand-alone exports for 2014 increased by 77% year-on-year. Yuchai has formulated market development plans for Indonesia, India, Vietnam, and other countries. India and Vietnam have achieved their marketing goals. In 2015, Yuchai Ship Power will actively break through overseas markets, consolidate Southeast Asia, explore Europe, advance into Africa, and move toward a broader market.

In addition to the field of shipbuilding, there are still more areas waiting for Yuchai to drive forward and expand the land.

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