At present, under the pressure of China's economic downturn, Guangxi Yuchai still delivered a brilliant transcript: Although production and sales volume has declined, production and sales continue to rank first in the industry, and its market share has steadily increased. Why Yuchai has such a strong ability to resist market risks?

Recently, during an interview with the National People's Congress and the chairman of the board of directors of Guangxi Yuchai Machinery Group Co., Ltd., he revealed the mystery. "If a company wants to survive the winter, it must rely on technological innovation, and drive product innovation through technological innovation. Under the new situation, we will find market breakthroughs and stimulate the development of enterprises."

Guangxi Yuchai Machinery Group

"If companies do not want to be eliminated, they must rely on technological innovation. Only by innovation can bring the multiplier effect, catalyze chemical reactions." Fuping said.

At present, many manufacturing companies are facing the winter, Yuchai engine market share is rising, but also took the country's intelligent manufacturing "first special train", rely on what? "Identify innovation is not relaxed." Fuping said. In the past few years, the issue of “high-temperature pot boiling” of the engine remained unresolved. Yuchai publicly “rewards rewards” and inspires all R&D personnel to tackle the problem. Three changes were made and the problem was finally overcome. "Who can imagine that a major model has supported the rapid development of the company for more than 10 years."

Nowadays, with the continuous improvement of engine emission levels at home and abroad, and the influx of international industry giants, China's internal combustion engine industry has entered a critical stage of development. The industry has constantly shuffled and intensified competition, and many companies are at risk of being eliminated. Junping said that simple technological innovation can no longer ensure that the company is in an invincible position. Especially in the new development period, customers have put forward higher requirements for the environmental protection and reliability of the engine, and require the full support of manufacturing technology, R&D system and even the entire industrial chain.

In order to maintain the development of the enterprise, Yuchai once again promoted the development of new markets with product innovation. In the past, Yuchai's product structure was dominated by vehicle engines. "We have a very high market share in the car market, and the 'ceiling' effect has already been highlighted," Muping said. With the development of China’s ocean power, and the development of the Yangtze River Economic Belt and the Xijiang Economic Belt in Guangxi, the shipbuilding and power generation engine sectors have great development opportunities. “We must make the ship and power generation engine blocks a new strategic segment.”

During the “Twelfth Five-Year Plan” period, Yuchai started from scratch and caught up, increased the research and development of ships and power generation engines, and set up a special research and development institute to expand the Yuchai ships and power generation engine platforms from 11 to 25. Displacement extends from 1.4L to 131.95L, which not only expands the platform, but also expands the product displacement. The application scope of the product is wider, and the anti-risk ability of the company is further increased.

The large-scale R&D and delivery of marine and power generation engine products have brought huge benefits to Yuchai. Junping calculated an economic account for the reporter: Through product innovation, in 2015, Yuchai's marine engine sales increased by 156.8% year-on-year. The engine for power generation increased by 315.3% year-on-year in the “Eleventh Five-Year Plan” period. During the "Twelfth Five-Year Plan" period, it sold more than 100,000 units. The economic benefits have grown at the same time. In 2015 alone, Yuchai’s sales of marine power generation engines exceeded RMB 1 billion.

Product innovation brings changes to the market. In the past two years, Yuchai has used the national “One Belt and One Road” strategy and has used its technical advantages in products to open up the country. In 2015, Yuchai’s overseas sales were the highest in years. In early 2016, Yuchai made its debut at the annual Eurasian Maritime Exhibition held in Istanbul, Turkey. In the Yuchai exhibition area, Yuchai's high-power marine generators became the most watched models on the site. On the first day of the opening ceremony, they harvested orders. More than 10 units, sales of 6 million yuan. During the entire exhibition period, a total of more than 60 orders were signed.

The research and development of marine and power generation engine products has also led to an increase in the level of Yuchai’s manufacturing, ignited the passion for corporate innovation, and led to a series of chemical reactions in corporate innovation. In terms of manufacturing technology, in order to ensure the smooth development of product innovation, Yuchai and the China Machinery Research Institute launched strategic cooperation and made great progress in 3D printing and intelligent manufacturing. In 2015, Yuchai’s “Digital and Large Engine Block Digital Casting Workshop” project was successfully selected into the national intelligent manufacturing special project. Yuchai became the only company selected in Guangxi and took the “first train” of national intelligent manufacturing.

Product innovation does not happen overnight. To enhance the technical advantages of high-speed, high-power ships and power generation engine products. On February 19 this year, Yuchai teamed up with MTU of Germany to launch a high-end high-power engine. According to the agreement, Yuchai will build a new factory together with MTU to jointly develop R&D. Yuchai is expected to take this step into the international high-end engine sector and learn from German industry. 4.0. It is hopeful to explore a new path for manufacturing China 2025.

In order to support product innovation, Yuchai has also invested a large amount of funds in the past five years. It extracts 5% of sales revenue each year to support product R&D, and has invested a total of more than 3.5 billion yuan in product R&D over the past five years. The new super 50 models, including light medium and heavy engines, as well as new energy power, ship electric power and so on. Huge investment has guaranteed the growth of corporate profits. Junping said that in the past two years, Yuchai's new product yields have exceeded 30%, and they have shown a trend of growth.

Stand alone is not spring. Junping believes that at present, the gap between China's China and international advanced companies is mainly the gap of the entire manufacturing system. Yuchai must achieve greater breakthroughs, and national industries must be fully rejuvenated. It is still necessary for the state to increase support for the entire industry and target the key. In the field of technology, the key technologies will be mastered in the hands of the national industry so that the great revival of the entire national industry can be achieved.

In particular, in response to the country’s upcoming release of the six emission standards for motor vehicles, Yuping believes that in order to meet the requirements of the national six emission regulations, the electronically controlled fuel injection system and the exhaust gas aftertreatment system must be upgraded, because most domestic companies lack technology accumulation and sufficient Assessed and verified that it is expected that at the implementation stage of the National 6th emission standard, the market space for the suppliers of domestically-owned electronically controlled fuel injection systems and exhaust gas after-treatment systems will become smaller and smaller, which will hamper the development of national industries. He suggested that the government carry out policy subsidies for major product upgrades in the automotive industry to ensure smooth product innovation.

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