FEATURE: What bring up the booming output of large engines?
Due to a rocketing demand for passenger vehicles, the production and sales of large engines grew 22.54% and 21.8% respectively in the first half year, according to a report released by China Association of Automobile Manufacturers (CAAM).
High-power engines trigger growth
CAAM statistics shows that the production and sales of engines in China reached 3,908,600 units and 3,882,600 units in the first six months. The sales of engines less than 1.0 liter dropped 11.67 percent while engines of 1.0 - 1.6 liter increased 40 percent and engines greater than 2.0 liter also grew by a big margin.
"Despite government efforts to encourage the use of smaller, more efficient cars and alternative fuels, the increase of affluent population and their desire for high-end vehicles will drive up the demand for the high power engines," said Xu Changming, director of informational resources development center under State Information Center.
And on the other hand, high-end autos are available in the market at more affordable prices in recent years, which greatly triggered consumer's purchase potential, explained Xu.
Diesel engines become more desirable
In passenger vehicle segment, production of engines for heavy trucks surged by 42.67 percent. Top five engine-makers in the first half year include Yuchai Group Co, First Auto Works and Kunming Yunnei Power CO, Werchai Power Co and Dongfeng Chaoyang Diesel.
It is also worth noting that diesel engine productions tend to concentrate on large engine groups: 88.6% of China's diesel engines are manufactured by top nine diesel engine makers.
The output of Werchai Power Co grew 119.31% in the first six months, which is followed by China National Heavy Duty Truck Group (66.56%), Shandong HuayuanLaidong Engine Co (58.73%), First Auto Works (38.89%), Dongfeng Motor Corporation (35.53%) and Yuchai Group Co (34.60%).
In China, production of passenger vehicles is susceptible to government policies and market conditions. China's economic constructions spur the prosperity of manufacturer industry, which in turn lays new demand for raw materials transports, thus diesel passenger vehicles, equipped with large engines but features fuel economy at the same time, become more and more popular.
Meanwhile, the manufacturers are making their plans to catch up with the mainstream. Engine suppliers like Cummins, has been given priorities to the research and development of high power engines in order to meet market demands..
Fast growth continues
Engine production and sales in the second half year will continue to grow due to stable economic growth in China.
"In addition to demands from new cars, there will also be greater demands from customers for maintenance," Xu said.
Gasgoo not only offers timely news and profound insight about China auto industry, but also help with business connection and expansion for suppliers and purchasers via multiple channels and methods. Buyer service:buyer-support@gasgoo.comSeller Service:seller-support@gasgoo.com
