In 2010, the heavy-duty truck market was very good, the passenger car market was not bad, and the agricultural diesel vehicle market was also very hot... Benefiting from the goodness of the upstream industry, most of the domestic diesel engine companies in 2010 were full of profits. However, this is not enough for FAW Wuxi. Cai Zhenfa, secretary of the Party Committee of FAW Xichai Factory, told reporters: "For 2010, Wuxi will focus on the future."

“The current advantages of FAW Wuxi are mainly focused on medium- and heavy-duty engines for vehicles. In addition to continuing to maintain our traditional strengths, we must also expand our car engine and light-vehicle engine, and we must also reinvent the second venture. The products that were cut off from the vehicle engine, such as construction machinery, ships, power stations, etc.” This is the basic idea of ​​Qian Hengrong, the director of FAW Xiecha Factory, for the forthcoming start-up of Xichai.

FAW Xichai planned so that it is necessary to enrich its product line and enhance its anti-risk capability, with a view to creating a new splendor of Xi Chai in the “Twelfth Five-Year Plan”.

Domain Specific

Near the end of the year, well-known domestic diesel engine plants have announced and estimated the company's annual sales this year. As far as the current sales situation is concerned, Weichai, Yuchai, and Xichai have steadily won the championship of the domestic diesel engine sales. Among them, Weichai expects that its engine production and sales will exceed 750,000 units in 2010; Yuchai Corporation expects 2010 annual sales of engines will exceed 550,000 units; and FAW Xichai in January-October 2010 Its production and sales have exceeded 370,000 units, and it is expected that by the end of 2010, its sales will exceed 400,000 units.

From the sales data alone, Xichai does not have an advantage over Weichai and Yuchai. And to investigate the reasons behind it, Xichai's single product line is one of the main reasons for its backward sales. It is understood that currently, in the field of diesel engines, Weichai and Yuchai’s products cover various fields such as diesel engines for vehicles, construction machinery, ships, yachts, power generation, and agricultural machinery. The product coverage of FAW Xichai is limited to vehicles. Use the engine.

Although from the point of view of the vehicle engine, Xichai Diesel has formed a series of N, M, L, F, K, X, W seven series diesel engine platforms, with a displacement of 2.16 to 13 liters and a power range of 46 to 500 horsepower. It can be said that in the diesel engine for vehicles, its series of products have many advantages such as large domestic emission span, wide power coverage, high technical content, and full emission technology route. This also allows Xichai to have a competitive advantage in the heavy-duty engine segment for vehicles.

However, in terms of car engines and light-vehicle engines, Xican was not involved enough. In order to reduce costs and increase efficiency for the second time, it has reduced the number of engine products in yachts, ships, power stations, and construction machinery. Today, it has become a growth point for sales and profits of other competing companies. In addition, according to relevant industry data, during the “Twelfth Five-Year Plan” period, passenger cars, construction machinery, ships and other markets will continue to grow exponentially on the existing basis.

For a company, focusing on one area alone is not a good thing. Because once this market has any "change", it will be the most direct impact. Therefore, if FAW Xichai is to be strong, it must first be bigger and bigger, and it must break through the bottleneck of its product line.

Comprehensive development

For the car and light vehicle engine that Xichai will launch in its fourth venture, although there is a parent company, FAW Group, it can provide full vehicle technical support. This compares to other diesel engine companies in diesel cars and light cars. On the engine, it has more advantages in research and development and assembly. However, in terms of customer resources, FAW Xichai has exclusive access to all customer resources of FAW, because FAW has a large diesel engine in addition to the Xichai plant, and FAW Group has two plants in addition to FAW Group. In addition to purchasing, it also purchases products from external manufacturers. For this fact, Xichai has already understood that FAW Group is, for a certain aspect, only a "old customer" who is more stable than other customers.

Therefore, in recent years, Xichai has stepped out of FAW Group's “safety box” by continuously improving its product research and development capabilities and technological innovation capabilities and participating in domestic and foreign market competition. It is understood that at present, FAW Xichai successfully cooperated with more than 30 light vehicle companies such as Beiqi Foton, Jianghuai Automobile, Shandong Kaima, FAW Light Vehicle, Shenyang Jinbei, etc., and has formed a strategic cooperative relationship with some enterprises.

For the diesel engines used in the construction machinery, ships, and power plants that were cut off in 1992 when they were married with FAW, although Xichai had accumulated power in the diesel engines for vehicles, it had given Xichai sufficient strength to regain this business, but For Xichai, it not only has to overcome the difficulties of the product itself in terms of technology, productivity, etc., but also has to face competitors who have taken up a lot of market share in this area...

All this will be a great challenge for FAW Xichai.

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