Yuchai 2016: The Dialectics of Challenges and Opportunities
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On October 1, 2015, China implemented the third phase emission standards for non-road engines. The implementation of the non-road country's three emission standards has brought a series of responses to the construction machinery and agricultural machinery industries. From the upgrading of the engine technology to the system-matching of the entire vehicle, this poses a severe challenge to both vehicle manufacturers and suppliers. 
In this transformation, Guangxi Yuchai Machinery Co., Ltd. (hereinafter referred to as Yuchai) stood at the forefront of the industry. In the past year, with the opportunity of non-road and three-nation emission standards, we have eliminated the integration of backward products, accelerated the pace of transformation and upgrading, turned challenges into opportunities, and achieved considerable development in both technology and market.
Comprehensive transformation and upgrading In 2007, China announced the first national standard for emission control of off-road diesel engines. Among them, the Phase 1 standard came into effect in October of that year, and the Phase 2 standard was implemented in October 2009. After six years, the implementation of the non-road country's three emission standards is a huge leap forward. Engine manufacturers need to make more optimization designs to meet emission requirements.
As a leader in the domestic engine industry, Yuchai deeply understands the changing trend of national policies and has done a lot of preparations for this purpose. Since 2008, it has been leading the upgrading of domestic engine emissions. Based on advanced technology precipitation and rich application experience, in 2015, the company first released 10 engines that met the third phase of non-road emissions, which caused widespread repercussions in the industry.
The impact of the implementation of China's three emission standards is an overall one. With this opportunity, Yuchai has done a series of work to make it a new starting point for transformation and upgrading in the field of non-road engines. In product planning, Yuchai eliminated integrated backward products, improved product technology content, and realized re-planning of production capacity; in the development strategy, it passed Yuchai's internationalization strategy, transformation and upgrading, and Yuchai's six-engine development principles and positioning to supply. Business, to promote the simultaneous development of suppliers and Yuchai; in cooperation with foreign countries, to increase cooperation with the host plant and even counterparts, in February of this year, Yuchai and Germany MTU (Fidres Hafen) to create high-end engine manufacturing The company will jointly develop high-end, high-speed and high-horsepower engine products markets in China and overseas.
At the same time, with the development of Industrialization 4.0, Yuchai has recently focused on the construction of intelligent factories and the construction of an “enabler†big data management platform that focuses on R&D technologies based on “IoT, computing, and structure†to realize the full range of Yuchai engines. Life cycle management provides Yuchai Engine users with a more professional, accurate, convenient, intimate and value-added after-sales service experience.
Technology to lead the industry <br> <br> country, three non-road emission standards than the second year, the much more stringent emission limits, and EFI technology can well meet these threshold requirements. The full range of off-road engines developed by Yuchai have all adopted EFI technology, mainly electronically controlled monomer pumps and electronically controlled common rails. The engine is a huge technological leap from mechanical injection to EFI. EFI technology not only reduces the amount of exhaust emissions to meet the country's three emission standards, but also significantly improves the quality of the engine.
After entering the era of EFI, the engine is truly professional and customized. When matched with the host, it can achieve one-to-one matching from structure to performance, and the engine and the host can achieve the best match. In terms of electronic control R&D soft power, Yuchai has more than 1,300 R&D personnel, and has very close cooperation with well-known engine R&D institutions and key component suppliers. In terms of hardware facilities, it possesses a state-certified enterprise technology center, a national accredited laboratory, a national engineering laboratory for high-efficiency, energy-saving and environmentally friendly internal combustion engines, and a state key laboratory for advanced forming technology and equipment (Yuchai's rapid manufacturing base). The number of Yuchai engine test benches ranks first among domestic counterparts. The test power section covers micro, light, medium, and heavy-duty engines, and has the ability to simultaneously perform tests of the National V, V, Ti, and Tier 3 engines, and can carry out more than 16 kinds of 80 kinds. Special test of parts and components, and the testing ability has reached the industry leading level.
In terms of services, Yuchai built a sound electronic control service protection system through the implementation of the vehicle's national and national IV emissions. At present, Yuchai owns more than 150 electronic control engineers (including foreign mobile electronic service engineers 60 There are more than 1,600 service stations with electronic control service capabilities, forming a relatively comprehensive electronic control service guarantee system, and fully capable of serving non-road three country products. Since the introduction of electronically controlled engines in 2003, Yuchai's electronically controlled engines have been used in the market with more than one million units. In the field of non-road use, we have achieved comprehensive support and achieved comprehensive coverage of the country's three-country emission engine, which has also won the recognition of the market due to its excellent performance and quality performance.
New pace of internationalization
The internationalization of Yuchai is the only way for Yuchai’s development and the only way out. In order to break the market pressure and move toward internationalization, Yuchai has made innovations in concepts, systems, and institutions, and has achieved remarkable results. In the past two years, the country has issued the "Belt and Road" strategic plan, which has added new impetus to Yuchai's overseas expansion.
In respect of its overseas strategy, Yuchai has continued to promote Yuchai’s international brand building by continuously seeking international cooperation, continuously deepening its overseas strategic planning and layout, and continuously upgrading its international strategy. In terms of overseas marketing, Yuchai’s efforts have been made through overseas offices and vigorous efforts. Develop service and accessories distributors to improve overseas offices and improve the service accessories network. Second, expand the export model by expanding self-operated, agency, and supporting marketing channels. Third, establish customer information databases to deepen customer relationships. The fourth is to ensure that the weak market is vigorously exploited on the basis of the traditional market to deepen the market. The fifth is to implement special tracking of overseas projects through the project management system. In terms of overseas management, Yuchai established a quality control system for export products and improved the export product spectrum. And a series of mechanisms such as type certification and the establishment of customer big data platform system, to further standardize overseas markets, enhance the competitiveness of overseas products, and enhance the international brand image of Yuchai.
Yuchai firmly grasps the "One Belt and One Road" and the strategic opportunity period for emission upgrades, and breaks the goal of internationalization from neighboring countries to more distant areas. At present, the business operations have extended to more than 30 in Asia, Europe, the United States, Africa, and Oceania. In countries and regions, sales have steadily increased. Judging from the development status of various regions, Yuchai has a good momentum of development in Southeast Asia and has also made breakthroughs in Russia and Turkey. In emerging markets in the Middle East, Africa and South America, the company is prepared to continue to increase investment to build Yuchai. Become a world-class engine brand.