Foton Cummins: Accumulates the future market
In 2011, every time Dongfeng Motor and Cummins ushered in the 25th anniversary of their cooperation, Cummins currently has four major joint venture power companies in China: Dongfeng Cummins, Xi'an Cummins, Foton Cummins and Chongqing Cummins. Judging from the timing of joint ventures, Foton Cummins was established at the latest, but its development speed should not be underestimated. On October 18th, the reporter walked into Beijing Futian Cummins Engine Co., Ltd. (hereinafter referred to as Foton Cummins) to understand the development status and future trend of the company.
Two products hit the world
Foton Cummins currently only produces two products - the ISF series 2.8 liters and 3.8 liters of light diesel engines. These two engines are a new generation of all-electrically-controlled light-duty diesel engines that Cummins has invested heavily in research and development. The power range covers 80 to 125 kilowatts. Although only two products compete in the world, both shareholders are very optimistic about their market advantages.
Dai Tiangao, deputy general manager of Foton Cummins, told the reporter that for light diesel engines, these two products can be said to be the most advanced in the country. “Employment as an example, the two engines are the Euro IV standard, and the Euro III products are actually products that we have deferred in order to meet the needs of the domestic market. At the same time, these two engines have reached the Euro V standard, Euro VI. The development of the standard was also started in early 2011.†It is important to know that in the domestic light diesel engine field, it is much more difficult to meet the national IV and national V standards than that of heavy-duty diesel engines. When domestic companies are still fighting for the national IV standard, Foton Cummins 2011 It has produced nearly 5,000 Euro V engines and exported to the Brazilian market.
According to reports, the Futian Cummins ISF 2.8 liters and 3.8 liters of light diesel engine has a compact structure, light weight, low noise, low emissions, suitable for light trucks, cards, light passengers, pickups, MPV utility vehicles, SUVs and other light vehicles , as well as off-highway equipment such as small construction machinery and small generator sets.
ISF 2.8-litre and 3.8-litre light inline four-cylinder high-pressure direct injection engines deliver more power and torque than comparable products of similar weight and size. Advanced thermal management systems allow the engine to operate at higher temperatures, reducing the size and cost of the vehicle's cooling system. Based on advanced computer simulation design, the ISF engine is lighter and more powerful than the same displacement product. At the same time, the modular construction design enables the platform to be quickly upgraded to meet more stringent emission standards in the future. According to reports, at present, Foton Cummins has realized the matching of light vehicle products with Futian Ouma, Ao Ling, Chery, Chang'an, Jianghuai, and Shuguang, and gradually became the supporting main force.
Domestic and foreign efforts
On March 26, 2008, Foton Cummins was announced. It took just over a year. On June 9, 2009, Foton Cummins officially went into mass production. The output rose from 1,800 two years ago to 55,000 in 2011. Dai Songgao told the reporter: Actually, as the company was just put into production in 2009, there was basically no scale production. The actual production started in 2010, when the production and sales volume of Foton Cummins jumped to 10,000 units. In 2011, it is expected to realize production and sales. 55,000 units will reach 100,000 to 110,000 units next year.
From the viewpoint of production and sales volume, Foton Cummins can say that it has reached a level of one year, and in particular achieved substantial growth in 2011. In fact, from the market situation in 2011, the production and sales volume of commercial vehicles dropped significantly year-on-year, especially for goods vehicles. Experts expect that commercial vehicles will basically be hopeless to stop falling at the end of the year. September production and sales data also showed that the production and sales of commercial vehicles fell by 10.29% and 5.92%, respectively. In addition to the increase in the number of passenger car models, truck models were negatively affected by the national macro-control policies. When the great environment was not good, why didn't Foton Cummins suffer, but instead achieved growth?
Dai Song relegated it to two points: First, the product was positioned in the mid-to-high-end market. The demand of user groups in this market was relatively stable and was less affected by the external environment. As a new entrant, Foton Cummins is occupying this market. "As long as the domestic companies in the high-end light vehicle products, such as Chery, Chang'an, JAC, Shuguang, etc., as long as the country IV car, without exception, our preferred engine." Dai Song Gao said.
Second, the overseas market is a strong support. “From the point of view of market distribution, the domestic market accounts for 30% of our sales, and overseas markets account for 70%. For example, GAZ, Russia’s largest light commercial vehicle company, is our customer and is equipped with our engine. After that, it was found to be much better than the engine that was previously fitted, whether it was dynamic, reliable, or economical.The overseas market grew very fast. Because of the demonstration effect of Muse, Kamaz and MAZ All of them are purchasing Foton Cummins engines.Furthermore, Foton Cummins has had a good performance in the fast-growing Brazilian market."These two factors make the market in 2011 not good, but the impact on Foton Cummins is relatively small. Dai Songgao said.
A red heart
As a large-scale industry, the engine does not have a certain scale, and it is difficult to achieve sustained growth and profitability of the company. Especially for new entrants, it is difficult to form a climate for 6 to 8 years.
Futian Cummins, who was founded three years ago, is clearly aware of this and has accepted the more painful process. “According to our original plan, the domestic market accounted for 70%, overseas markets accounted for 30%, but now it is upside down, and overseas has become the main market.†Dai Songgao said that when Futian Cummins was founded, it was expected that the domestic high-end light machine The market growth will be relatively fast. I did not expect that the State III and State IV standards will be postponed for several times, casting a shadow over the development of this enterprise, which is positioned in the mid-to-high end light machine market. But Futian and Cummins are not in a hurry and still have high hopes for Futian Cummins.
"On these two days, Cummins's global board of directors visited Futian Cummins and saw our development. The board was surprised and felt that we were developing too fast. We must know that this is the second time since Cummins's establishment that the board of directors was held in China. They Came to Futian Cummins, and now both shareholders are very confident about the development of the company, and the investment is also very high.Fukuda build high-end pickup P201 will use Foton Cummins engine, Cummins has also set up a light diesel engine business department. The company has suffered losses for several consecutive years, but both shareholders believe that it is not particularly important because the development of the company is healthy."
Therefore, Foton Cummins is not in a hurry. The domestic mid- to high-end light vehicle market will maintain stable growth. The distribution of domestic and foreign markets will have no impact on the overall operation. These are the cornerstones for the continued development of Foton Cummins. According to Dai Songgao, the export markets of Foton Cummins are currently countries with relatively high emission regulations. Due to Cummins engine technology and brand leadership, the market is relatively stable. In addition, Foton Cummins is vigorously exploring the market for construction machinery and off-highway engines in order to take advantage of these two rapidly growing markets.
"I believe that once the domestic market starts and environmental protection laws are implemented as scheduled, our advantages will become more and more obvious." Dai Song told reporters with confidence.
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