On June 8th, Cummins and 10 joint venture partners in China, dozens of customer representatives from all walks of life, suppliers and distributor representatives, community partners and related industry representatives gathered in Beijing to celebrate Cummins and the industry The 40-year journey that the partners have worked together, this celebration is also a key step for Cummins to formally establish the company's future business strategy under the new normal.

Taking this event as an opportunity, Lan Bowen, Chairman and CEO of Cummins Inc., Vice President of Cummins Group, Director of China and Russia Cao Side, Vice President of Cummins, Chief Technology Officer of China, Peng Lixin, Customer Service Manager of China, Wang Hongjie, Vice President of Cummins, Wang Ning, General Manager of Dongfeng Cummins Engine Co., Ltd., and Zhan Jun, Senior Director of Cummins Global Communications, participated in media exchange activities after the meeting, and exchanged questions and answers on Cummins' 40 years of development in China and future corporate strategic planning. .

First, change the concept, from gasoline engine to diesel engine

Forty years ago, Cummins officially established business relations with China and initially tested the water in the Chinese market. Forty years later, Cummins was striding forward in the Chinese market, and some businesses in China also became the benchmark for engine companies. Cummins's connection with China can be traced back to the 1940s. In the 1970s, with the easing of Sino-US relations, China gradually opened the door to reform and opening up, and Cummins became the first wave of children. Like ordinary foreign companies entering China, Cummins has experienced a long period of development and exploration in China.

In a sense, it is not difficult to sell products to an emerging market. The difficulty is to let the audience and users change their mindsets, let the market break the conventional routine, and take the initiative to accept products. Cummins had made a lot of effort in this area in the early days of entering the Chinese market.

"Twenty years ago, China's trucks were basically gasoline engines, and diesel engines were few, only about 30%. So Cummins has to spend a lot of time to introduce the benefits of diesel engines to the domestic market." Dongfeng Cummins Engine Co., Ltd. General Manager Wang Ning told the reporter of China Bus Network: "In 1986, Cummins transferred the technology of 4B3.9 and 6B5.9 diesel engines to China Dongfeng Group. Cummins engineers followed the Dongfeng truck from the northwest. Ningermu has been going to the Tanggula Pass. The general diesel car is very difficult to get there when going up the mountain. The Cummins diesel engine is equipped with turbocharging technology, which can be used in harsh environments. Since then, users from the northwest have known more diesel engines. the benefits of."

From gasoline engines to diesel engines, from passive acceptance to active change, Cummins' deep cultivation in China in the past 40 years not only provided advanced products to the domestic market, but also provided a powerful boost for the transformation of Chinese bus people and the concept of integrated bus industry.

Second, the first enlightenment, let the passenger car powered by natural gas

Cummins is not only the vanguard of advanced technology, but also the pioneer in promoting domestic energy conservation and emission reduction. In the 40 years since entering China, Cummins has produced products that meet the national emission standards in strict accordance with the requirements of production consistency, and has built green environmental protection into the brand, and is committed to creating a clean and green driving force.

As a kind of clean energy, the cost of natural gas is much lower than that of gasoline. At the same time, it has the characteristics of low pollution, high safety and high economic efficiency. It is widely used in the field of passenger cars today. The promotion and application of natural gas buses is undoubtedly the reduction of exhaust emissions. Effective Ways. All of this is inseparable from Cummins' strong promotion in the Chinese market.

Cao Side, vice president of Cummins Group and head of China and Russia, said in an interview with the reporter of China Bus Network: "Cummins cooperated with Beijing Public Transport as early as 1998. At that time, the Beijing Municipal Government asked Beijing to buy compressed natural gas raw materials. There is no bus to use compressed natural gas, so Dongfeng and Cummins have jointly designed a new bus to use a compressed natural gas engine. Most of the Beijing buses use Cummins engines, so the cooperation is also long-term, Cummins brings to the Chinese market very Advanced product technology design. At this point, the cooperation between Cummins and Beijing Public Transport has opened the first step for natural gas power applications in the Chinese bus and even truck market.

In the past two years, China's natural gas vehicles have developed rapidly. Among them, LNG (liquefied natural gas) vehicles are growing at an annual sales rate of more than 20%, and CNG (compressed natural gas) vehicles are growing at an average annual rate of more than 30%. China's natural gas vehicle ownership has grown from less than 10,000 vehicles in 2000 to more than 1 million vehicles today. It is expected to reach 3 million vehicles by 2020, and the compound growth rate will reach 27% in the next five years. In 2014, Cummins L8.9G natural gas engine was released. It is Cummins' first natural gas engine specially built for the Chinese market. In 2015, Cummins B6.7G natural gas engine was released. It is also customized for Cummins for the Chinese market since L8.9. And the second engine developed locally and locally. There is no doubt that the booming Chinese natural gas engine market is inextricably linked to Cummins’ efforts.

Third, lay a solid foundation and focus on key components of commercial vehicle engines

The high-quality performance of the vehicle is inseparable from the support of excellent performance parts. As the "heart" of the car, the importance and complexity of the engine is self-evident. It can be said that the quality of the engine directly affects the performance of the car.

After Cummins entered China, in addition to the joint venture company, many supporting companies were included in Cummins' overall strategic system in China. In addition to Dongfeng Cummins and Xi'an Cummins, Cummins has also established a large number of engine key parts factories, such as Shanghai Fleetguard production filter, Wuxi Cummins production turbine increaser and so on.

Regarding the promotion of the localization of key parts of the engine, Cao Side, vice president of Cummins Group and head of China and Russia, told reporters: "Cumins first used imported machines to meet new markets, and parts and components were shipped from abroad. Then assembled in the country, the cost is too high. Cummins' current concept is to produce locally in China, and the higher the localization rate, the better."

From last year's L8.9G to this year's B6.7G, Cummins is working closely with domestic companies and making great strides in promoting the localization of engines. “We recently had a new product, the G series was produced at Foton Cummins. It was designed 5 years ago. After entering the market this year, why did it succeed? The first goal is that the cost is as low as the local engine, and the second is that the function is higher than the local one. Reliability, durability, fuel consumption, oil change intervals, etc. are all higher. It can be seen that Cummins' corporate strategy is correct," said Cao Side, vice president of Cummins Group.

Forty years, Cummins adheres to the technology leadership and provides key component support for the fair opening of China's diesel engine industry, helping Chinese diesel engine enterprises achieve technological upgrading.

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