Non-road diesel engine market brewing

In April, cumulative sales of commercial vehicle internal combustion engines reached 1,261,500 units, a year-on-year increase of 9.38%; cumulative sales of construction machinery used in internal-combustion engines decreased by 18.65% year-on-year to a total of 141,700 units; cumulative sales of agricultural machinery engines reached 1,284,500 units, a cumulative decrease of 35.64% year-on-year. The cumulative sales of marine engines totaled 80,600 units, a year-on-year decrease of 36.40%; the cumulative sales of generator sets used internal combustion engines of 573,300 units, a year-on-year decrease of 4.68%; and the cumulative sales of garden machinery used in internal combustion engines were 1,301,100 units, a cumulative decrease of 9.31% year-on-year. In April 2016, in addition to passenger car gasoline engines, sales of diesel engines for commercial vehicles, construction machinery, agricultural machinery, generator sets, and garden machinery all fell to varying degrees. In addition, exports in the non-road areas also decreased year-on-year.

From the data point of view, this year's cumulative sales of multi-cylinder diesel engine has a larger decline compared with the same period, of which engineering, agricultural use a larger decline. This data has disappointed many diesel engine companies with high expectations for non-road markets.

In fact, in recent years, the commercial vehicle market has been severely declining. The non-road market is also a critical period for emission upgrading. Many diesel companies are vigorously expanding the non-road engine market. However, the recovery of this market is not smooth.

Wang Ningsheng, chief of the General Motors Department of FAW Xichai Sales Co., Ltd., said: “In 2016, the domestic non-road market will not be very good, and exports will be the same. The demand for agricultural machinery is particularly not optimistic.” He judged, “As of now, sales and actual use of agricultural machinery. The installed capacity is not as good as expected by the company. In addition to the factors of emission upgrading, it may also be related to the reduction of agricultural area.” Wang Ningsheng believes that the market performance of engineering machinery leaders will not be too good, and the market competition in the second stage of the country has become fierce, and the country There will not be much infrastructure investment in the follow-up.

Affected by the impact of China's second-country switch, the multi-cylinder diesel engine company sold a total of 1,278,100 units in April, a cumulative decrease of 12.32% year-on-year. Sales of the top ten sales such as Yuchai, Weichai, Quanchai, Xichai, and Yunnei accounted for 69.82% of total sales. Among the top-selling companies, sales of Weichai, Xichai, Yunnei, and Foton Cummins increased year-on-year.

“Since the implementation of the Non-Road National Standards in October last year, the existing market stocks have dropped sharply, making the non-road countries and three markets perform better in the first quarter of this year,” said the relevant person in charge of Quanchai. It is understood that Weichai has fully entered the non-road low-end market. With the entry of major diesel engine companies, Quanchai, who previously had a large advantage in the non-road low-end market, also felt pressure.

According to the reporter's understanding, Yunnei Power has certain technical advantages in the four-cylinder engine, especially after the strict implementation of the State III, it is expected to continue to improve in the small-scale agricultural machinery market. However, due to the unfavorable situation in the non-road market, they did not achieve the expected sales target. Weichai has always had a high market share in the large construction machinery market. However, due to the continuous decline in demand in this area, companies may also enter the agricultural machinery market and look for new growth points.