A state-of-the-art technology, together with the magic cube of capital operation, may instigate the position of the industry leader.
Recently, Chengdu Witt EFI, which had been limited by the "bottleneck" of funds, finally found such a cube. The current leader in the diesel engine EFI industry, Bosch Germany, also smelled more gunpowder and a sense of crisis.
State-owned EFI companies "marriage" private capital
On June 26th, Chengdu Witt EFI and Wang Yi Group’s Chengdu Yikong High-Tech (EFI) Corporation announced the formation of a joint venture to form Wang’s Witt EFI in Beijing.
At the press conference, Mr. Zhu Yuanxian, General Manager of Wang’s Witness, stated that more than 10 major domestic diesel engine companies, including Yuchai, Dongfeng Cummins, Daouitz FAW Diesel, FAW Xichai, Dongfeng Chaochai, etc., are already in its III engine products. Wit's electronically controlled combination pump was used; at the same time, since the second half of 2007, Witt has delivered nearly 5,000 electronically controlled combination pumps to users. More importantly, Witt's electronically controlled combination pump has entered volume production. "At the end of this year, we will be able to reach an annual output of 100,000 sets of products."
According to reports, Chengdu Witt was originally based on the production of single pump, after independent research and development, developed an electronically controlled combination pump. This electronically controlled combination pump is a variant single pump solution that can achieve State III emissions, with minor changes to the engine, and is easy to match with the shape and interface of existing engine products.
"Our technology is mature, but it was previously limited by funds and the scale could not be further expanded," said Zhu Yuanxian. An industry insider told the “Commercial Automotive News†reporter that in the phase III of the country, for the OEMs and OEMs, whether the domestic diesel engine EFI system can achieve mass production as soon as possible and turn R&D into practical productivity is Determine whether they use the key factors of domestic diesel engine EFI system.
Domestic EFI system is expected to be mass produced
At the beginning of the implementation of State III, and the users are on the sidelines, 2008 and 2009 are key years. Wang’s joining at this time brought financial support and mass production possibilities to Chengdu Witt at a critical moment.
At the press conference, Wang Jin, chairman of Wang's Witt, stated that Wangshi Group is optimistic about the development prospect of the diesel engine EFI system and will increase capital investment in the joint venture company. It is understood that in 2006, Wang's investment in the establishment of Chengdu Yi-controlled high-tech (EFI) company, and in Chengdu at the end of 2007 investment in the construction of an annual output of 80,000 sets of EFI product lines, key equipment, all imported from abroad. After a joint venture between Chengdu Wit and YiChang GaoKe, this production line will be merged into the newly formed joint venture company. In addition, Chengdu Witth will expand the original production line and it is expected that it will reach 100,000 sets of electronic-controlled combined pump capacity by the end of the year. "The second line will be built around May next year. By doing so, by the end of next year, the production capacity will reach 180,000 sets," said Zhu Yuanxian.
In addition, because Yichang Hi-Tech Co., Ltd. itself is engaged in the development of diesel EFI products, after the merger with Chengdu Wit, the joint venture company will further strengthen its R&D capabilities in electronic control units. At the same time, as a private enterprise, Wangshi Group's business ideas and concepts will also make the joint venture company system more flexible and competitive.
Bosch faces challenges
Whether it is in-line pump plus EGR technology launched by Heavy Duty Truck or Witt's electronically controlled combination pump, its advantages are low price, small changes to the original engine, and ease of use and maintenance. This is very attractive for many commercial vehicle users who are in a wait-and-see attitude, and it poses a certain threat to foreign-funded enterprises that have been pushing main-rail technology. Recently, Maier Rudolf, vice chairman and general manager of Bosch Automotive Diesel Systems Co., Ltd., said in an interview that companies such as the Wuxi Fuel Pump Institute and Chengdu Witt will quickly grow into Bosch's Chinese diesel engine market. Strong contenders.
The reporter learned that in 2008, Bosch’s sales target in China was 4 billion yuan. Wang’s Witt is far from Bosch’s opponent in terms of registered capital, technical strength and sales, but why Bosch still puts Wang’s Witt Seen as a strong challenger? The main reason lies in the price. According to Zhu Yuanxian, the price of electronically controlled combination pumps is only slightly higher than that of traditional mechanical in-line pumps, and its price is 30% to 40% higher than Bosch's high pressure common rail system.
"This is a great challenge for Bosch." Wei Anli, secretary general of China Internal Combustion Engine Industry Association, holds the same view.