Foreign Engines purchase in China Regain Stability Instead of Dropping

12 June 2009

Autos production&sales in April 2009 both exceeded 1,150,000 units because of China’s stimulus policies. China has replaced America for 4 months to be the largest auto market in the world. With the rapid growth of the auto market, domestic engines market is also rapidly growing. Engines production&sales in April both exceeded 1 million units, sales exceeded 1.1 million units. If this continues, the engines market is bound to be prosperous in 2009.


Engines production and export regain stability instead of dropping


According to relevant authority, engines production were 3,492,036 units from January to April, of which, engines production were 1,074,017 units in April, up by 2.81% as against last month; engines export were 668,400 units form January to April, of which, export grew faster in April, export 232,800 units, up by 44.39% as against last month. Main export countries are: the United States, Japan, Vietnam, Korea, Canada, Pakistan, Germany, Italy, the United Arab Emirates and Thailand.

 

By the end of March 2009, top 15 engines production enterprises in the first quarter are: Guangxi Yuchai, Chongqing Changan, Liuzhou Wuling Machine Plant, FAW - Volkswagen, Beijing Hyundai, Chery, FAW Group, Harbin Dongan Automotive Engine, Anhui Quanchai, Harbin Dongan Automotive Power, Yunnei power, Dongfeng Nissan, Shanghai GM Powertrain, Shanghai Volkswagen and Dongfeng Honda Enginet.

 

 

 Engines Output &Export volume Area Chart from January to April in 2009

 

Foreign engines procurement in China increases


According to related statistics, foreign engines procurement in China increase since February. Overseas buyers launch procurement for engines and parts through web site platform, as much as 238 times, up by twice y/y, compared with last year’s 132 times. That’s all because of the global financial crisis, it’s getting better in the second quarter of this year, and procurement is back to normal.
 Especially with the completion of integration of the global automotive industry, a new round of procurement is under planning in China, it’s estimated that if the engines market is as good as in April, engines export will reach a new level in 2009.


 

 

 Foreign Engines Purchase Frequency Table

 

Mini engines will dominate in energy-saving &emission reduction

 

In January 2009, in order to encourage and support the development of the automobile industry, the State Council issued the plan of auto industry revitalization, tax 5% for l.6L and below 1.6L engine emission vehicle purchase. Low emission auto sales increase significantly. Sales of auto with engines emission 1.0L and between 1.0-1.6L increases significantly, up by 26.52% and 20.78%; and engines emission above 4.0L and between 3.0-4.0L decreases significantly, down by 93.68% and 60.49%.

 

 

Sales Increase Table of Different Emission Autos

 

If the state adheres to tax 5% for l.6L and below 1.6L engine emission vehicle purchase, "If the policy continues, it will be the most important example of energy saving &emission reduction before the emerge of pure electric vehicles.

 

R & D of 1.6L and below 1.6L attract the attention of major OEMs. It is learned that the "2009 automobile engines and parts special procurement matching meeting, that is engine technology seminar" will be held in June 30 in Shanghai,the meeting will focus on mini gasoline engines manufacturing process needs and the development trend, foreign advanced engines design and development technology, the latest key technologies (GDI, TSI), lightweight technology - all-aluminum engine manufacturing process technology, the core components development and innovation technology stability and so on.

 

The procurement matching meeting and technology seminar will be regarded as revitalization of domestic engine market in 2009, the parties presented have shown great passion, and the situation is getting better. Currently, there are more than 40 domestic and foreign OEMs; engines assembly buyers express their participation in this meeting, more than 60 domestic high-quality engines and parts suppliers express their participation, too.

 

 

Source : english.chinabuses.com

Editor : Grant

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Tags: Foreign Engines China Stability Dropping

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