Xing Min: China's internal combustion engine industry faces four major opportunities and three major challenges

Abstract: From November 29 to December 2, the "9th China International Combustion Engine and Components Exhibition" (ENGINECHINA2010) sponsored by China National Internal Combustion Engine Industry Association will be held in Beijing China National Convention Center.

Notice on the Role of Industry Websites and the Promotion of Industry Information Work From November 29 to December 2, the “9th China International Combustion Engine and Components Exhibition” (ENGINECHINA2010), sponsored by China National Internal Combustion Engine Industry Association, will be held in Beijing, China. The conference center was grandly held.

On the eve of the opening of the exhibition, this reporter interviewed Mr. Xing Min, Vice Chairman of the China Internal Combustion Engine Industry Association, on issues currently facing the industry.

China Industry News: The 9th China International Combustion Engine and Components Exhibition will soon begin. What are the confirmed exhibitors? What are the highlights of this exhibition?

Xing Min: Currently Weichai Power, Yuchai, Dongfeng Cummins, Isuzu, Yunnei, Xinchai, Quanchai, Denso, Bosch, Hino, Chery, Dongan, BorgWarner, ASIMCO, and Correns, USA Southwest China University, Wuxi Cummins, Zhejiang Yinlun, Zhongyuan Inner Match, Tianrun Crankshaft, Liaoning Xinfeng, Binzhou Pistons, Kangyue and more than 180 well-known domestic and foreign enterprises have confirmed to participate in this exhibition, it is worth mentioning that from Tianjin University, etc. The energy-saving and environmental-friendly engine industry technology innovation strategic alliance formed by enterprises and institutions has also participated in the exhibition for the first time.

The theme of the exhibition is: "Innovation, Energy Saving, Green, Environmental Protection, and High Efficiency"; the main highlights are "The gathering of leading international products and a review of industry achievements."

The exhibits will be in-depth interpretation of the theme of the show from the two main lines of product technology and process equipment. Among them, the product technology line will highlight the "independent innovation, energy-saving emission reduction, green environmental protection" technology and products; process equipment line will mainly display "green manufacturing, efficient manufacturing," advanced design and manufacturing technology, processes and equipment.

Exhibitors are mainly domestic and foreign famous brands, and the overall quality is high. The domestic host companies have a strong lineup and represent the advanced level of the domestic internal combustion engine manufacturing industry. For the first time, the exhibition opened the exhibition area for crafts and special equipment for the manufacture of internal combustion engines and parts and components, demonstrating advanced design, manufacturing technology and process equipment related to the internal combustion engine, making the exhibition content system richer and more complete.

In addition, in order to enhance the understanding and understanding of the internal combustion engine industry among university students, volunteers will be served by university students from Beijing Institute of Technology and Beijing Jiaotong University. The exhibition will also include special media corners and press releases to facilitate the industry’s exchanges and reporting with participating media. At the same time, some charity events will be interspersed during the exhibition.

In addition, this year's internal combustion engine exhibition was held in the first harvest year after the country strongly encouraged the development of new energy industries. Therefore, at this exhibition, leading players in the industry will launch various kinds of traditional internal combustion engine retrofit products, internal combustion engines using alternative fuels, and new energy sources developed in recent years.

During the exhibition, the China Internal Combustion Engine Industry Association (hereinafter referred to as "the Association") will also cooperate with a number of media to hold a series of forums and research activities. Including the "China Internal Combustion Engine Industry Summit 2010" held in cooperation with the China Industry News and the commendation of the vanguard companies in the internal combustion engine and components industry; the "2010 China International Advanced Manufacturing Technology for Internal Combustion Engines Forum" was held together with Fogo Industrial Media to discuss "green , high-precision, and high-efficiency design and manufacturing technology and solutions; and a press conference jointly organized by Modern Components Magazine and the "Industrial Engine Remanufacturing Technology Application and Industry Survey" and "Internal Combustion Engine Tool Application" surveys. Professional visitors build a multi-faceted, all-around technology exchange platform and business platform.

I believe that the 9th China International Combustion Engine and Components Exhibition will be a conference for the achievement of energy-saving and emission-reduction products, the launch of the international leading technology for internal-combustion engines, and the exchange conference between domestic and foreign well-known brand manufacturers, and it will be an international and domestic one. Release a harmonious conference with a low-carbon economy.

China Industry News: 2010 is coming to an end. What is the economic operation of the internal combustion engine industry in China this year?

Xing Min: Since the beginning of this year, the economy of the internal combustion engine industry has been operating steadily, showing four main characteristics: First, the country’s policy effectiveness has been continuously reflected. This year’s year-on-year growth in both production and sales has reached a record high; Second, the industry’s ability for independent innovation has increased. To meet the market demand, the increase in the output value of new products is large. Third, the market demand for energy-saving and emission-reducing products soars, which drives the market launch of the country's third and fourth national products. Energy conservation and environmental protection are increasingly valued by the national and regional economies; It is a key enterprise that has further increased its production concentration.

Although there are many uncertainties this year, we still have confidence in exceeding our annual tasks. It is expected that the industry will achieve an increase in industrial added value by more than 30% year-on-year this year. The industry's annual total output value will exceed 300 billion yuan, and the total number of units will exceed 70 million units.

China Industry News: This year is the last year of the "Eleventh Five-Year Plan" period. How do you evaluate the overall performance of the internal combustion engine industry during the "11th Five-Year Plan" period and the work of the China Internal Combustion Engine Industry Association?

Xing Min: I think that the “11th Five-Year Plan” is the best period for the development of the internal combustion engine industry. During this period, the internal combustion engine industry has achieved fruitful results in terms of independent innovation, product quality, standardization construction, industrial restructuring, and exports.

In the aspect of independent innovation of internal combustion engines, the entire industry has increased investment, so that the growth rate of new product output value is higher than the growth rate of total output value. At the same time, the scientific and technological innovation system of industry combined with industry and research has been continuously improved. The product quality inspection system and industrial measurement calibration system have been gradually improved, providing basic guarantees for the improvement of the quality of internal combustion engine industrial products; the reliability and consistency of products have been continuously improved, and the gap with the international production level has gradually narrowed.

In the optimization and upgrading of industrial structure, the entire industry has achieved great results. Since the "Eleventh Five-Year Plan" period, the internal combustion engine industry has continuously adjusted its industrial structure and replaced its products. The level of resource allocation and industrial concentration of enterprises have been greatly improved. Six companies have entered the top 100 of the machinery industry. The organizational structure of internal combustion engine companies was further optimized, and the pace of reorganization across industries, regions, and ownership systems was accelerated, and small and medium-sized enterprises and private economy achieved rapid development.

In industrial clusters, the industrial belts and industrial parks of the internal combustion engine industry develop rapidly. For example, the scale of small power products in Jiangsu Province and Zhejiang Province has gradually expanded, and heavy power in Shandong and Guangxi has rapidly increased. Through industrial agglomeration, enterprises with technological development and investment strength have improved their market competitiveness.

In terms of foreign trade exports, the average annual growth rate of the internal combustion engine industry's exports is higher than the "Eleventh Five-Year Plan" target, and the structure of export products and trade methods are also constantly being optimized.

In terms of opening up to the outside world, the scale and level of the internal combustion engine industry are also constantly improving. Companies such as the Weichai Group have achieved certain results in implementing the “going out” strategy, and they have possessed world brands, core technologies and talents, which have promoted the enhancement of high-end product R&D and design and manufacturing capabilities.

During the “11th Five-Year Plan” period, in addition to the rapid development of the internal combustion engine industry, the industry associations have also entered a rapid growth period. Among them, the association's advantages in the convention and exhibition platform have been further developed. In Beijing and Shanghai, successively held domestic and international influential brand exhibitions, and successfully held the Eighth International Combustion Engine Exhibition. In addition, the membership of the association has continued to increase, and the organization has grown further. It has formed a comprehensive and vertical association system with complementary advantages. It has become an industry organization that the government is able to rely on, the industry cannot leave, the company trusts, has certain social influence and international reputation. In terms of technical regulations, the association has strengthened the standards system construction and supporting standards, innovation standards, energy-saving emission reduction standards, and the revision of safety and detection method standards.

China Industry News: Next year will enter the "12th Five-Year Plan" period. What opportunities and challenges face the Chinese internal combustion engine industry?

Xing Min: In the current environment, China's internal combustion engine industry faces both new opportunities and new challenges.

First of all, the internal combustion engine industry faces four opportunities.

One is the opportunity to increase the international market share. Although there are uncertainties in the demand for power in the three major markets of the United States, Japan, and Europe, there is still room for growth in China’s market share. In addition, a group of emerging economies represented by India has moved from recovery to rapid industrialization. The strong demand for infrastructure construction, construction equipment, and industrial equipment has shown that the potential for upgrading China’s power products market share in emerging economies is huge.

The second is the opportunity to introduce high-end industries. Since China has the dual advantage of a rapidly expanding huge market and relatively low-cost manufacturing, multinational companies not only continue to regard China as a manufacturing base for the global market, but also plan more R&D activities, regional headquarters, advanced service industries, and high-end manufacturing. Equal value-added industrial activities are transferred to China.

The third is the opportunity to introduce scientific and technological talents. The financial crisis has intensified the flow of global scientific and technological talents. In 2008, the scale of layoffs in the US scientific and technological community was approximately 180,000. In 2009, the unemployment rate in the United States further climbed to 10%. Now that a large proportion of Chinese students studying abroad have returned to China, large-scale introductions have been made. The conditions for scientific and technological personnel are relatively mature.

The fourth is the opportunity for “going out” to actively integrate overseas resources. After the financial crisis, many companies have been trapped by the shortage of funds. China's foreign investment has greatly increased its market access opportunities. Through overseas acquisitions, low-cost access to overseas technologies, research and development capabilities, brands, market channels and other resources, in order to enhance the ability of Chinese enterprises to innovate It provides conditions for international competitiveness.

Second, opportunities and challenges coexist, and the three challenges currently facing the internal combustion engine industry are also enormous.

First, facing the challenge of international competition entering a higher level of competition, the second is facing the challenge of domestic economic and social development in the period of frequent contradictions, and the third is the challenge to the test of the strength of comprehensive industrial competition.

The first challenge stems from the fact that the new round of technological revolution is currently in the start-up phase, and several important areas are brewing new breakthroughs. Developed countries rely on their first-mover advantage to seize the commanding heights of the future competition strategy and become increasingly intensified. The development of new technologies and new industries will change the comparative advantages of countries and the competition among nations. However, the internal combustion engine industry of our country is still at the low end of the national industrial division of labor; and because the political contest and the economic competition are intertwined, it is not easy for the internal combustion engine industry to get rid of the technological advantage of the developed countries as quickly as possible and to strengthen the right to speak and bargain on the international stage. thing.

The second challenge is that the implementation of relevant policies and measures to promote the adjustment and revitalization of the three industries is not in place. In particular, the efforts to improve the core technological level of engines and components have not been adequately supported. As a result, the task of completing the three planning objectives has become more onerous; The pressure of upward pressure continues to increase, and the appreciation of the renminbi is in a long-term rising path, which has increased the difficulty of production, operation, and export of enterprises. Due to the impact of tightening investment and consumer demand, the difficulty of maintaining stable and rapid development of the industry has increased; Strategic and economic dialogues are the new starting point. Foreign investment and market access conditions are more relaxed. Multinational companies and domestic companies compete on the same stage, and market competition is more severe.

The third challenge exists because the disadvantages of the internal combustion engine industry at the low end of the global industrial value chain have not yet been reversed. China has now become a major manufacturer of internal combustion engines, but the basis for sustainable development and comprehensive competitive strength still do not match the status and image of big countries.

China Industry News: During the “Twelfth Five-Year Plan” period, how will the internal combustion engine industry implement the strategy of adjusting the industrial structure and transforming the economic development mode?

Xing Min: I think that in the upcoming "12th Five-Year Plan" period, the use of the power of science and technology to adjust the industrial structure and change the mode of development is the key to the development of the internal combustion engine industry.

The internal combustion engine industry will continue to advocate the adoption of advanced processing techniques and methods, encourage the development of remanufacturing projects, support and guide the development of energy-saving, water-saving, material-saving and intelligent high-value-added products; attention should be paid to the new trends in the development of emerging industries, in the low Carbon, environmental protection, and high-end products are being developed.

When formulating the "12th Five-Year Plan" for the internal combustion engine industry, the industry should aim at realizing a manufacturing power, take the structural adjustment, change the development mode as the main line, and support the advancement of science and technology, and take the market as the guide, depicting the development of the internal combustion engine industry in the next five years. The grand blueprint for development. In the planning, it is necessary to accelerate the promotion of traditional internal combustion engine technological transformation, promote the optimization and upgrading of traditional industries, accelerate the development of strategic emerging industries, vigorously develop high-tech industrial equipment, and comprehensively improve the level of internal combustion engine equipment manufacturing as a central link; accelerate the promotion of energy-saving, emission-reduction and green Environmental protection manufacturing as a breakthrough point; Focusing on two markets, utilizing two kinds of resources, optimizing product structure, and improving core competitiveness as the focus, laying the foundation for the entire industry to achieve a historic leap.