New Energy Route Competition Brings Green Opportunities to Parts Giants


Truck drivers who always complain about the journey and lack of fun will immediately have a good stopover. They would like to thank those humble diesel engines. A repair shop network designed to provide repair services exclusively for diesel vehicles is about to be established nationwide, and they will be as attractive as the beautiful car 4S shop.

In addition to leaving the problem trucks and engines to these shops, drivers can also sit in bright halls to learn how to maintain knowledge of diesel engines, listen to music and chat, or drink a cup of coffee. Such comfort is simply impossible. Imagine.

The owner of this service network for both diesel cars and diesel trucks is Delphi, the world’s second largest component supplier. The plight of the North American department’s application for bankruptcy protection is making the Chinese market’s significance as much as possible. Delphi's global executives interviewed by this newspaper believe that diesel vehicles will become one of the biggest opportunities in the Chinese automobile aftermarket in 10 years. They have organized 7 distributor job fairs for diesel vehicles in 7 major cities in China.” Sermon."

The multinational giants who have demonstrated a good sense of smell in China's diesel vehicle market include the German Bosch, which built a diesel common-rail plant in Wuxi this year, and Cummins, which already has two diesel engine companies in China. They are gaining more. Orders from engines and OEMs.

In the present day of the Chinese diesel car market, but still very difficult, these parts giants are showing considerable dedication and patience, waiting for the arrival of diesel vehicles in the spring. Another background of their huge investment in the diesel vehicle market is that the confusion of the vehicle giants on the new energy vehicle route is increasingly heating up.

Delphi "Mingpian Plank Road"

Delphi will be the first to establish a "strong compatibility" diesel service network, reflecting the future of the parts giants will be more intense competition for the diesel car market.

On November 1st, Delphi China Vice President, Mr. Situ Yulin, President of Delphi Products and Services Solutions Asia Pacific, and Mike Rayne, General Manager of Delphi Diesel Aftermarket Global, announced the initial plan for the service network in the Asia Pacific region. At its core is the after-market service strategy for diesel vehicles in China.

Delphi announced that its first Diesel Center of Excellence in China will open in Dongguan, Guangdong in late November. It will serve Delphi and all diesel car customers outside Delphi.

Situ Yulin said: "The establishment of the first center is an important part of our strategy to provide a complete range of diesel vehicle service systems."

He pointed to the standard shop pictures on the screen and described to reporters: Dongguan Fuxin Diesel Service Center has two floors, professional testing facilities, including the Hartridge AVM2 PC, a clean room and a vehicle repair area equipped with Delphi standards.

"As the volume of diesel vehicles continues to expand in China, the proportion of vehicles that require diesel vehicles will continue to expand," Mike Rayne said. "We have recently held a series of regional seminars in seven major cities. A large number of distributors formally applied to join Delphi's diesel service network. We expect Delphi's service network to develop rapidly in the next 18 months.

At the same time, Delphi will review the applications received to ensure that every service center in the future will be able to meet its stringent technical standards, and that service center technicians will also be trained and certified by Delphi's professional engineers.

When explaining why to invest in this network, Mike Rayne said: “In China, increasingly stringent emission regulations require us to provide more new products, such as common rail systems and electric pump nozzles, to help meet more stringent emission standards and higher standards. The performance is now available to Renault, Peugeot, Ssangyong, Kia, Volvo, etc. We hope to provide diagnostics, disassembly and installation services for our customers."

In fact, as the world's two major diesel common rail technology providers, Delphi did not establish its factory in China. Before the competitor's localized products had not been released, Delphi had not signed a new diesel common rail system supply contract with three Chinese engine manufacturers in October last year.

"As in Europe, we can not only repair the equipment provided by Delphi, but also repair other brands of equipment. In fact, this strategy is very good. First of all, we have increased our market awareness. Secondly, maintenance personnel continue to gain rich practical experience. It will improve," Mike Rayne told reporters.

One of the more ambitious Delphi's ambitions in China is to first go through a large diesel service network and provide services to diesel car buyers outside of Delphi's technology, thereby nurturing market reputation to win more local customers. Once a sufficient market is formed, localized production will be inevitable, and this will be part of the capacity to support the formation of a 1 million diesel common rail system in the Asian market in the future.

"Peer" opponents

In the diesel common rail system, Bosch is Delphi's largest global competitor and its counterpart in the Chinese market.

In April of this year, Bosch announced that by the end of 2007, it will invest an additional US$600 million (approximately RMB 5 billion) in China, mainly for the expansion of Bosch Automotive Diesel Systems, Technology Centers, and Intelligent Hydraulic Systems.

Its open forecast shows that they believe that the market share of diesel passenger cars in China will remain relatively low until 2007, but the total sales of diesel vehicles will increase at an average annual rate of 12%, and the total output of diesel vehicles in China will reach 1.9 million. Vehicle.

"Due to the diesel power can ease China's growing pressure on crude oil, diesel passenger vehicles will make a big difference in the Chinese market," said Qi Kejun, general manager of Bosch Diesel Systems China.

In fact, Bosch is by far one of the largest component giants invested in the Chinese diesel vehicle market. Last year, together with Wuxi Weifu Group, they jointly invested 200 million euros in the construction of a new automotive diesel system company in Wuxi, which is the largest investment project of Bosch diesel systems outside of Germany.

In addition to establishing large-scale production facilities, Bosch has invested 50 million euros in building a world-class technology center, which will also be completed within this year.

As the largest company that designs, manufactures and sells diesel engines globally, Cummins of the United States is another giant in the Chinese diesel vehicle industry chain. Its two major joint-venture diesel plants in China are Dongfeng Cummins and Chongqing Cummins, both of which are industries. Leading companies are even more active this year.

In July, Cummins East Asia Engine R&D Center laid the foundation for Wuhan to develop and develop a new generation of engine products that can meet Euro IV vehicle emission standards and the third-phase emission standards of European and American non-highway mobile equipment.

Subsequently, Cummins announced a huge diesel engine plan in Beijing on October 14th: It will invest 300 million U.S. dollars in China in the next five years, and plans to increase its business volume in China from 1 billion U.S. dollars in 2004 to 2010. 30 billion U.S. dollars.

The new US$300 million investment will be used to jointly produce 11-liter engines in Xi’an and Shaanxi Auto, to jointly develop a new-generation 13-litre heavy-duty engine with Dongfeng Motor, to jointly produce exhaust systems, and to produce natural gas engines in China. Partners will also put equal funds.

They are just an eager microcosm of the diesel vehicle industry chain. Like giants such as Denso and Valeo, they are beginning to lay low-key.

Competition for new energy routes

At the Shanghai International Industry Fair that ended last week, SAIC Motors, with its theme of “new energy wave, new power SAIC”, may be a typical example of many China’s new energy vehicles still in the “choice” period.

The "New Power" exhibited by SAIC Motor showed all-round development results of new energy vehicles such as alternative energy vehicles, hybrid vehicles, hydrogen fuel cell vehicles and environment-friendly vehicles.

In the field of alternative energy vehicles, Shanghai Volkswagen's new-generation Passat TDI diesel sedan has already been put into demonstration buses for "dimethyl ether" engines and "methanol" engines for passenger cars. In terms of hybrid vehicles, it has been demonstrated by SAIC Motor. The "Shenzheng Dynamic No. 1" hybrid bus independently developed by the Automotive Engineering Research Institute of the Stock Autonomous Institute of Industry, Research and Research, and the "Tongan" hybrid-powered sedan that Shanghai Volkswagen will put into demonstration operation in 2008.

As for hydrogen fuel cell vehicles, there are fuel cell MPVs jointly developed by SAIC and Tongji University, as well as the "Hydrodynamic Three" fuel cell car that is jointly operated with GM....

In response to questions from the media about its “flower blossoming” route, the relevant person in charge of SAIC said that SAIC's planned route is “adhering to the combination of long-term goals in the near future. On the one hand, it will focus on the research and development of hydrogen vehicles and will strengthen hybrid power and alternative energy in the near future. Car development".

New energy vehicles that have emerged in China, alongside diesel vehicles, include at least pure electric vehicles, hybrid vehicles, and hydrogen fuel cell vehicles.

In fact, the German Volkswagen, Audi and behind the Delphi, Bosch as the representative of the European diesel car route, Japan's Toyota, Honda's Japan hybrid route, GM and Ford, Dyke as the representative of the North American hydrogen fuel cell route, so far Failed to decide the outcome.

Chen Hong, president of SAIC, expressed his concern that “New energy has become an important driving force for the future development of the automotive industry. We must quickly start a new energy strategy and quickly identify our strategic position in this new round of competition. The inevitable choice for Chinese auto companies to participate in the international competition in the auto industry."

The entire vehicle army represented by the above steam and FAW are obviously trying hard to make judgments and expect to realize industrialization as soon as possible to catch up with the new wave of changes in the automobile era. What people are curious about is whether the diesel cars that are gradually lifting the ban can be favored first?


Editor: Zheng Xueqin

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