Mid-to-high-end engines will be the main direction for China's future engine export growth

Mid-to-high-end engines will be the main direction for China's future engine export growth

Statistics from the China Association of Automobile Manufacturers show that from January to August 2015, China’s total exports of automotive engine products were 2,309,300 units, a drop of 6.46% from the same period last year. Although the export volume decreased, the accumulated export value of engine products from January to August was 1.158 billion U.S. dollars, an increase of 1.36 percent over the same period of last year. The cumulative export value of engine component products was 4.859 billion U.S. dollars, an increase of 6.03 percent from the same period of last year.

Engine Export Data for August 2015
Engine Export Data for August 2015

Recently, Xing Min, vice president and secretary-general of the China Internal Combustion Engine Industry Association, said in an interview with reporters: "According to statistical data, as of August, the engine export market has picked up slightly. This is a favorable signal." He said , engine-related companies must have confidence in the export market, and strive to improve the quality of engine products.

In August, engine exports declined

Judging from the month, in August 2015, the export of engine products was 293,400 units, a decrease of 10.60% compared with the same period of last year; the export value was US$ 147 million, a decrease of 1.90% from the same period of last year. In the first eight months, February, April and June performed well. Engine products were exported to 248,300 units, 353,300 units, and 341,100 units, respectively, achieving different degrees of growth compared with the same period of last year. Among them, the biggest increase was in April, a year-on-year increase of 17.18%; the biggest decrease was in July, a year-on-year decrease of 25.89%. Judging from the category, from January to August this year, the total number of motor gasoline engines exported was 2.248 million units, and the total number of vehicle diesel engines was 61,000 units.

From the perspective of exporting countries, the export countries of China's engine products are still mainly Pakistan, Russia, Iran, Japan, Vietnam, Argentina, Turkey, Peru, Iraq and Thailand. In view of the fact that exports of automotive engines are mainly based on emerging countries, and export countries and regions are relatively concentrated and dependant, and have not yet formed a multi-regional export model, they are greatly affected by local export policy adjustments.

Multiple factors reduce the overall export volume of the engine

“After analyzing the export data, we found that some mid-to-high-end engine manufacturers’ exports have not declined significantly or have not declined, and some companies have increased. The decline in export volume is more serious among low-end and mid-tier manufacturers. This shows that we also It is necessary to find more reasons from inside the company,” Xing Min explained. “Technology is the basis for competing in overseas markets. Some manufacturers’ products have no advantage in technology and other aspects. After the adjustment of export standards in the export area, etc., they cannot follow up and update. Product, which is also an important factor leading to a decline in exports."

It is understood that the engines of China's self-owned brands are relatively single in terms of export type, and are relatively weak in high-end products and personalized products. Compared with other countries' competition, especially when the market's demand for these products is increasing, the independent brands are not special. The competitiveness to seize market share.

At the same time, China’s main brand engine has not yet formed an export system. It is not familiar with the characteristics of foreign markets, laws and regulations, and after-sales services, and local production is lagging behind. It has failed to make product upgrades and upgrades for the market. Deviations have led to insufficient stamina in exports and there has been a significant drop in exports in some regions.

In some of the most popular export countries and regions, China's engine companies have poured into the market. In order to increase sales, price competition has been adopted, and there has been no improvement in terms of quality and after-sales service. The result is a vicious market competition. Most companies have to withdraw from the market.

Future engine export market is expected to rebound

As China strengthens the implementation of the export tax rebate policy, and promotes domestic engine companies to invest overseas to build factories and participate in the development of overseas regional markets and other favorable factors, China’s engine export situation is expected to improve in the future. Engine companies must actively respond to national policies and adjust product distribution and export strategies. "In the next stage, the engine's export volume should pick up," said Xing Min. "We must have confidence in the industry, we must not only look at the volume of exports, but also the pursuit of quality. In a big environment, the industrial structure must be adjusted. A slight decline is a phased phenomenon."

Criminal Min believes that the export situation of the engine is better for the government and the enterprise to advance together. Relevant departments must strengthen the quality supervision and control of export engines and actively implement the policies to create a good environment for engine exports. At the same time, engine manufacturers should be encouraged and supported to establish specialty stores and after-sales service networks in export areas. In addition, in the areas of China's auto engine export bidding, foreign exhibitions, foreign trade development funds and the use of SMEs in international market development funds, etc., it is encouraged to actively explore the international market and sales channels and win overseas customers by providing high-quality products and satisfactory after-sales services. Trust.

For enterprises, it is necessary to increase brand awareness, increase the brand's external propaganda, rely on favorable policies to make the brand bigger and stronger, expand the export area, and reduce excessive dependence on export areas. At the same time, it should also increase the product's independent R&D investment, conduct in-depth studies on policies and markets in export areas, adjust and upgrade products in response to demand, and further improve product distribution, improve product quality, and increase the export share of high-value-added products. Gradually, the transition from a single product export to a capacity output will occur.

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