2011 engine piston market increase by 10% to 15%

According to the latest engine production and sales data, China's total engine production and sales in 2010 reached 16,909,453 units and 17,025,933 units, respectively, compared with the same period last year, production and sales of 13,268,876 units and 13,123,685 units, an increase of 27.44% and 29.73% respectively.

Divided by fuel, the total production and sales of diesel engines for vehicles were 3,935,515 units and 3,992,674 units, up by 25.03% and 30.36% from 3,147,776 units and 3062877 units respectively in the same period of the previous year; the cumulative production and sales of vehicle gasoline engines were completed by 12,965,853 units and 13,025,243 units. Compared with 10,114,307 units and 1,054,296 units in the same period of last year, they increased by 28.19% and 29.55% respectively; other fuels were sold at 8085 units and 8016 units, an increase of 19.02% and 23.10% respectively year-on-year.

In 2010, the total production and sales volume of China's engine piston host market reached 71,589.97 million and 71,212,438, respectively, which were 562.3666 million and 55.5577545 million, respectively, which was an increase of 15.35231 million and 16.55420 million, respectively, over the same period of last year. Divided by fuel, the number of vehicle diesel engines was calculated by 5 vehicles. The annual production and sales of piston engines for vehicle diesel engines totaled 1,977,775,000 and 1,963,370,000, an increase over the same period of the previous year, 15.7388 million and 15,314,385, respectively, with an increase of 393.8695 respectively. Ten thousand and 464.8985 million. The number of gasoline engine pistons used in each vehicle was calculated based on four vehicles. Accumulative production and sales completed 51,783.12 million and 52,107.22 million respectively, a year-on-year period of 40,465.28 million and 40,216,891,400, respectively, an increase of 1,114.618 million and 118.80436 million. The number of other fuel pistons was calculated by 6 each, and the production and sales were 48,110,000 and 480,096, respectively, which were 40,758,000 and 409,072 compared with the same period of last year, an increase of 07,760 and 0.9024 million respectively.

2010 engine piston market characteristics In 2010, along with the rapid growth of the automotive and engine markets, the engine piston market as a whole has also achieved rapid and synchronous growth. Looking at the engine piston market throughout the year, the following features are presented:

- The overall performance of rapid growth, the annual trend was "V" shape. Since the first half of 2010, the engine piston market has also been booming as the market for automobiles and engines has been surging ahead. From January to June, the production and sales volume of the gasoline engine piston market increased by more than 50% respectively, reaching 55.95% and 56.45% respectively. The piston market of diesel engines continued to maintain a steady growth, which was a year-on-year increase of 35.21% and 41.18%, respectively. However, after entering the months of July and August, the engine piston market, like the automobile and engine markets, entered the “adjustment period,” and many companies have taken time off in late July and early August. As a result, there has been a continuous decline in the market and there has been a pick-up trend since the end of August. From September to December, it rose month by month.

- Pistons actively accelerate the transformation and upgrading of products and market structures. This can be verified from the statistics of another measurement unit, kilowatts. In 2010, the cumulative increase in kilowatts for piston companies was 38.60% and 41.45%, respectively, which was 11.16 and 11.72 percentage points higher than the growth in terms of the number of stations. This indicates that the average power index of each engine was significantly enlarged. With the continuous improvement of national emission standards, especially the gradual implementation of the National 3rd and 4th national emission standards, Pistons have stepped up efforts to adjust the product and market structure. For example, since the beginning of 2009, Hunan Jiangbin Company has adhered to the principle of “focusing on supercharger and focusing on environmental protection” and actively built a platform for the national three, four, and five national product platforms, gradually reducing, eliminating low-grade, low-efficiency, and inconsistent with new emissions. Standards require products, increase high-value-added, high-performance, high-tech content, low-pollution, low-emission piston production R & D efforts, so that the proportion of high-grade pressurized environmental protection piston products reached more than 90%.

- Pistons suffered "growth troubles" and increased pressure to increase production capacity. In the past two years, with the rapid growth of China's automobile and engine companies, the Pistons have encountered "growing troubles" in addition to ensuring the rapid growth of market demand for automobiles and engine companies. In particular, with the accelerated transformation and upgrading of automotive and engine products, many automobile and engine companies have launched new projects to expand production capacity.

According to preliminary statistics, only from January to August 2010, the number of new or newly started engine projects in the country has reached more than 2 million units. Therefore, each piston company must also keep up with the pace of upgrading its engine products and technology to meet its rapidly launching new product needs. This requires that each piston company must increase capital investment, technical innovation and R&D investment, and increase the scale of production capacity. Therefore, the pressure on the production capacity of each piston company is also increasing.

- The cost pressure of the Pistons' business is still huge.

First, the increase in prices of major raw materials led to increased cost pressures on companies. Since 2010, as China’s economy has gradually recovered and stabilized, the prices of upstream products and elements have risen rapidly, which has increased the cost pressures of auto and parts companies and made it difficult to organize production. In particular, the price of non-ferrous metals, the main raw material for piston companies, has fluctuate drastically. For example, the ring price fell sharply by 5.7% from February last year and rose to 2.5% in March. The price fluctuation range is as high as 8.2%. In the first half of 2010, the price of aluminum increased by more than 20% year-on-year, and nickel and copper prices rose by more than 60% year-on-year respectively. In addition, the prices of domestic refined oil products follow the price fluctuations in the international crude oil market, and prices are also operating at high levels. Hunan Jiangbin Company incurred more than RMB 20 million in funds due to the increase in the price of main raw materials in 2010.

The second is the downward pressure from the entire vehicle and the host company. In addition to the pressure from the rise in the prices of major raw materials, the Pistons also share the pressure of price cuts from the entire vehicle and the host companies. Each year, the price cuts of the host companies remain at about 5%. Therefore, in a sense, this price reduction pressure may be more direct and serious than the increase in the price of major raw materials.

The third is pressure from increasing operating costs year by year. In order to meet the needs of its own survival and development, enterprises have continuously expanded the scale of production and sales. The increase in capital investment by enterprises has led to an increase in the cost of financing. In addition, companies also need to absorb the cost pressures of labor costs, taxes, and energy and power prices.

Analysis of Engine and Piston Market Situation in 2011 2011 is the first year of the national “Twelfth Five-Year Plan”. It is also a year full of major opportunities and challenges for the automotive, engine and piston companies. In 2011, Pistons will face enormous pressure from rising raw material prices and increasing production and management risks caused by increased inflationary pressure.

While seeing challenges and pressures, it is even more important to gain insight into and grasp development opportunities. From an industry perspective, industry insiders generally believe that the auto industry will maintain a growth rate of around 10% to 15% in 2011; from the engine market perspective, major host companies will also maintain growth of around 10% to 15%, plus maintenance and Foreign market, the piston market demand is still strong. The author believes that the annual Pistons market will maintain a growth of around 10% to 15%. Internally, major domestic piston companies have initially completed the upgrading of their products and markets. Therefore, overall, the Pistons' industry opportunities in 2011 are greater than the challenges.

2011 engine and piston market forecast The author believes that in 2011 the overall increase in the engine market remained at an average of about 12%, including 9% for commercial vehicle engines and 15% for passenger car engines. Therefore, in 2011, the total output and sales of engines in China reached 19,929,525 units and 19,339,781,000 units, respectively. Divided by fuel, the total production and sales of diesel engines for vehicles were 4.282711 million units and 435.2015 million units; the total production and sales volume of vehicle gasoline engines was 1,901,073 units and 1,497.929 million units; other fuels were produced and sold at 8,873 units and 8,737 units.

In 2011, the total production and sales volume of the engine piston engine market in China is expected to reach 81,144,357 and 8,172.891 million, respectively.

According to the ratio of 1:1 of the main engine and maintenance market, the total production and sales volume of China's engine piston repair market in 2011 reached 81,144,357 and 8,187.861 million respectively. Therefore, in 2010, the total production and sales volume of China's engine piston market reached 162,288,714 and 1,634,572,000 respectively. only.