Analysis and Forecast of Diesel Engine Diesel Engine Market Competitive Pattern

Since the sales volume of heavy trucks exceeded the sales volume of medium trucks for the first time in 2002, the market trend of heavy trucks has always been the focus of attention of the industry, and its specific configuration has always been a focus of attention and discussion among industry professionals. Of course, The diesel engine that is one of the core components is the first to suffer.

Product Structure and Market Segmentation for Heavy Truck Diesel Engine Market

The author classifies diesel engines that currently match heavy trucks in China. This classification is mainly due to two considerations:

The first is to describe the product structure of the heavy truck diesel engine market, mainly to see what types of models and diesel engine manufacturers are participating in the market competition.

The second is to carry out the necessary market segmentation for this entire diesel engine market, because different models face different markets, and their respective future market trends and market fate are also different.

The details are shown in Table 1-3.

Table 1 One of the representative models of diesel engines for heavy trucks

Displacement Model Manufacturer Power (Kw)
Torque emission level Mainly matched models
5.9
6B
Dongfeng Cummins 132-173
650-800
Euro I-III
8-12 tons truck
6.618
CA6DE
Dachai 147-177
720-890
Euro I-III
8-12 tons truck
7.127
CA6DF
Dichai, Xichai 162-206
780-960
Europe I, II
8-15 tons truck
6.494
YC6105
Yuchai 140-170
630-800
Europe I, II
8-12 tons truck
7.255
6108
Yuchai 132-155
610-690
Europe I, II
8-12 tons truck

Table 2 Diesel Engines for Heavy Trucks

Displacement Model Manufacturer Power (Kw)
Torque emission level Mainly matched models
7.7
CA6DL
Xichai 191-235
990-1250
Euro II, III
10-15 tons truck
7.8
YC6112
Yuchai 147-221
820-1150
Euro I-III
10-15 tons truck
8.424
YC6L
Yuchai 228-258
1150-1400
Euro II-III
More than 15 tons truck
8.3
D6114
Shangchai 158-235
790-1200
Euro II
10-15 tons truck
6C
Dongfeng Cummins 162-239
800-1175
Euro II-III
10-15 tons truck
9.726
WD615
Weichai, Hangfa 175-280
1000-1460
Euro II-III
More than 15 tons truck


Table 3 represents the model of heavy-duty truck diesel engine

Displacement Model Manufacturer Power (Kw)
Torque emission level Mainly matched models
11
M11
Chongqing Cummins 186-283
1146-1650
Euro II-III
More than 15 tons truck
11.6
WD618
Weichai 265-323
1500-1850
Euro II
More than 15 tons truck

Matching relationship between diesel engine and heavy truck

Judging from the current power matching of heavy trucks, the matching relationship between the diesel engine and the vehicle is simple and complex.

Diesel engine manufacturers supporting the main vehicle manufacturers
Dachai, Xichai First Auto Group Corporation Liberation Automobile Co., Ltd.
Dongfeng Cummins Dongfeng Group
Weichai, Hangzhou, China Heavy Duty Truck, Chongqing Heavy Duty Truck, Shaanxi Heavy Duty Truck
Yuchai Dongfeng Group Corporation, Beiqi Foton, North Mercedes-Benz
Shangchai Chongqing Heavy Duty Truck and Beiqi Foton

There are many vehicle manufacturers that supply independent diesel engine products independent of vehicle manufacturers. The main reason can be analyzed from two aspects:

First, from the perspective of vehicle manufacturers, vehicle manufacturers do not want their own technology and production capacity to be controlled and tied up by other vehicle manufacturers. In order to seek greater freedom in production and operations, and reduce the company's business risks, it ultimately chose the products of independent diesel engine companies. From the rapid rise of Beiqi Foton, it can be seen that this choice is amenable to practice and time and is the right decision.

Second, from the point of view of the diesel engine enterprise itself, diesel engine companies affiliated with specific vehicle manufacturers often have relatively small degrees of freedom in sales. Parent companies often control their own diesel engines through written rules or unwritten practices. The sales and sales scale of the products sold by the parent company is the important market for these diesel engine companies, and even the only market; while the independent diesel engine companies have a lot of autonomy in terms of sales, and they can sell as long as there are market orders.

Heavy-duty truck diesel engine market differentiation, different types of models have different outcomes

Judging from the current market competition pattern and competitiveness of heavy-duty truck diesel engines, the author classifies diesel engines for heavy trucks into three different typical types. They are:

Type One: "The Declining Aristocracy"

As shown in Table 1, diesel engine models, these models are relatively small displacement models.

The reason why these models are "declining aristocrats" is because they are experiencing a continuous decline in market share. In the past few years, these models have been the absolute dominant models in the heavy-duty truck diesel engine market, and their market share occupies an absolute advantage. Why does this happen? The author analyzes it from two perspectives:

First, look at the market competitiveness of these models. With the expansion of the heavy truck market capacity, along with the rapid adjustment of the heavy truck product structure and sales structure, as the competition in the heavy truck market intensifies, heavy trucks increasingly require high-power diesel engines to match. However, due to the limitations of the displacement and reliability of these models, their power levels have been brought to the limit. As a result, these models have gradually failed to meet the requirements of heavy-duty trucks for diesel power. Some heavy-duty truck models have begun to seek large-scale Quantity, high-power diesel engine products. Therefore, the decline in market demand for these models has become an irreversible ending.

Secondly, judging from the market competitiveness of heavy trucks that match these models, heavy trucks that match these models are obviously lagging behind in terms of product performance, mainly due to the backwardness of the vehicle's power, and the vehicle The dynamics not only determine the climbing performance, acceleration performance, and bearing performance of the vehicle, but also determines the economic benefits that the vehicle can bring to the user. This is the most important. In the current heavy truck market, the market share of heavy trucks matching these models has been shrinking year by year, and it is expected that they will withdraw from the dominant market sales in the near future. The decline in the market share of some traditional heavy truck companies in recent years is a very clear evidence.

Type II: "emerging aristocracy"

Diesel engine models shown in Table 2. The displacement of these models is basically around 8-9 liters.

The reason why these models are "emerging aristocrats" is because these models have seen rapid sales growth in recent years, and market share has also increased year by year. The growth of these models is mainly reflected in the following three aspects:

The first is that these models can stand firm in emerging markets. The main representatives are the products of Yuchai and Shangchai. The successful operation of the diesel products of the two companies at Beiqi Futian has become a successful example of a “win-win” for the entire automobile company and parts and components companies in the domestic automotive market. Conduct practical and theoretical research;

Second, through the contribution to the performance of the entire vehicle, it has grown with the increase in the sales volume of the entire vehicle, achieving a simultaneous increase in sales with the vehicle. One of the main representative models is the WD615 diesel engine. Through this series of models, two diesel engine companies, Weichai and Hangfa, have increasingly become the vane indicators of the diesel engine industry. The rapid growth in their sales volume gradually demonstrates the market potential of large-displacement diesel engines, and it also indicates that vehicles that match these models are required. The outstanding market competitiveness demonstrated.

It is most appropriate to describe the relationship between this type of vehicle and the vehicle as "complementing each other."

The third is the replacement of the so-called "declining aristocracy" model in the same target market. This situation is mainly reflected in the FAW and Dongfeng company. The following two phenomena are the best explanations for this market phenomenon: First, the number of models of Yuchai's YC6112 and YC6L diesel engines that are matched by Dongfeng Corporation (Shiyan Headquarters and Liuzhou Automobile) and their sales Performance; Second, Weichai has entered the FAW heavy-duty truck market since 2002. Although sales are not large due to various reasons, it must be a signal of market opening and the “get-up” that the market needs to reshuffle.

The most direct reason why the “emerging aristocrats” have grown is that these models not only satisfactorily meet the requirements of heavy trucks for power levels and torque levels, but also promote the successful differentiation of products that match these models. It also adapts very well to the market price positioning of heavy trucks in terms of cost and sales price. The combined effect of these two factors has promoted the rapid development of these models.

Type 3: "Future Aristocracy"

Diesel engine models shown in Table 3. These models are "potential shares" in the market.

Although the sales volume in the current market is not large, it represents the future development direction of diesel engines for heavy-duty trucks, and the vehicles to be matched by these models will mainly include the following three types:

First, it is applied to tractors and is mainly used for the transportation of goods on expressways. This is an inevitable result of the development of logistics and transportation. Its characteristics are fast and efficient;

The second is to apply to various engineering vehicles, which belongs to the category of special vehicles, such as concrete mixer trucks, cement pump trucks, dump trucks, etc., which can improve the efficiency of the project, reduce the cost of the project, etc.;

Third, it is used to transport special cargoes under special use environments, such as transporting timber in forest areas, transporting large cargoes, transporting dangerous goods, and so on.

Forecast of future market trends

The author will make some predictions about the future trend of each market segmentation model:

First, the "declining nobles" will continue to decline. Its market space will continue to shrink, and the "emerging aristocracy" will become increasingly fierce in its occupation of the market;

Secondly, the “new emerging aristocracy” will reach the peak of sales volume in the next 3-5 years, and will show a downward trend year after year. Its market will gradually give way to “future nobles”, especially heavy trucks with large tonnages (over 15 tons). in the market;

Third, the “future aristocrats” will become the main matching power for heavy trucks in the next 5-7 years. Of course, these “future aristocrats” must include foreign diesel brand products. The author believes that: "The future nobles" can become the main matching power for heavy trucks. The time needed will depend mainly on three aspects:

First of all, the cost level and sales price of the model can only be broken if the cost level is lower than the sales price and the sales price is in good agreement with the price positioning of the entire vehicle. Embark on the path of healthy development;

Second, the performance, cost, and sales price of other components (clutch, transmission, rear axle, etc.) matching the diesel engine have only a good match of performance, the cost of related parts and components is appropriate, and the ratio of sales price to total vehicle cost is a comparison. When reasonable, the sales of diesel engines can only make a breakthrough;

Finally, the sales price of the entire vehicle matched by these models is generally high, so the purchasing power of consumers is also a limiting factor. The re-emergence of large-scale freight companies and large logistics companies will allow the market potential of this market to be released to some extent.