Recently, the EU has implemented Stage IIIB emission standards for diesel engines with non-road mechanical power ranging from 130 to 560 kW. It is understood that after the Copenhagen climate conference, international attention has been paid to carbon emissions, energy conservation, and environmental protection. As the engines for off-highway motor vehicles have compression ignition (CI) engines and spark ignition engines (SI), the annual emissions of NOX, CO, and HC (HC The total amount of harmful substances such as particulate matter (PM) and particulate matter (PM) is almost equivalent to the total annual emissions of engines for road vehicles. Therefore, the European Commission announced the application of new emission standards for diesel engines with a non-road mechanical power range of 130-560 kW.
An expert who has long been engaged in the certification of diesel engine emission standards stated that the EU IIIB emission standards have imposed stricter restrictions on the emission of particulates from the engine, from the original 0.2 g/kWh to 0.025 g/kWh. To meet this limit, diesel engines must be equipped with particulate filters to solve this problem. This means that the cost will increase further.
Export thresholds to improve profit reduction In recent years, domestic infrastructure construction has been booming. Chinese construction machinery companies such as XCMG, Zoomlion, and Sany Heavy Industry have achieved a leap-forward development. All of the above-mentioned enterprises have proposed the development of “100 billion yuanâ€. planning. According to the plan, overseas markets account for a large proportion, and whether Chinese construction machinery products can enter the international market in large numbers will face enormous challenges.
It is understood that as most of the domestic engines have not yet reached the export requirements, they can only purchase foreign brands of engines. Such as a 5-ton loader, domestic engine prices are between 40,000 to 50,000 yuan, while foreign brands need 70,000 to 80,000 yuan. Enterprises as purchasers can only increase costs and reduce profits. “The biggest advantage of China’s construction machinery is its price. Purchasing a higher-standard foreign engine will further increase the cost of the product and weaken the export competitiveness of the product.†The relevant experts are not worried.
Although there is no near-worry but need to be far-reaching for the EU to implement the phase IIIB emission standards, both the industry experts and production companies, that the recent impact on exports is not. The reason is that currently China's construction machinery manufacturing enterprises, represented by XCMG, Zoomlion, Sany Heavy Industry, and Guangxi Liugong, are mainly exporting their products to Asia, Africa, and Latin America, and the European Union has formulated new emissions. Standards have some impact on product exports, but the impact is not great.
He Zaihua, a senior research fellow at China Investment Consulting, pointed out that engine and hydraulic components are the two core components of construction machinery. In this regard, Caterpillar has world-leading technology. On the other hand, the localization of engines and hydraulic components is not high in the domestic market. Most of them need to be imported, although some companies headed by XCMG are making breakthroughs in engines, but at this stage they are far from reaching their own levels. In other words, it is impractical to talk about exports in terms of engines and hydraulic components at this stage. .
He Zaihua emphasized that the promulgation of new EU emission standards has little effect on the current domestic market's exports, but it can affect imports. Most of the imported products are international brands. They all belong to high-end products in terms of quality, performance and price, and the emission standards are promulgated. This will undoubtedly increase the production costs of manufacturers and increase export prices. This is undoubtedly a major challenge for Chinese manufacturers. The increase in procurement costs will further reduce the profitability of China’s construction machinery products and weaken international competition for products. The market space cultivated by price and price advantage will meet the standard attack.
The “2010-2015 China Machinery Industry Investment Analysis and Prospect Forecast Report†issued by China Investment Advisor shows that in the first half of 2010, excavators were taken as an example. Foreign brands such as Japan and South Korea still dominated the domestic market. Market share reached more than 70%.
Although domestic companies have effectively improved their production factors, they are still inconsistent with the world's largest market. The strategic structure and competitive structure of enterprises still need to be improved.
Experts pointed out that only product upgrades can keep up with the standard update, in order to seize the commanding heights of the market. At this stage, most domestic companies are still in the stage of making products. Only a few brand enterprises are doing technology. The future development of enterprises should be to become a standard enterprise. Therefore, in the increasingly fierce international competitive environment, domestic enterprises should look to the future. Taking environmental protection and energy conservation as breakthroughs, we try to walk in the front section of the market to avoid being eliminated by increasingly new standards.
Lu Renqi, vice president of the China Machinery Industry Federation, said that energy conservation, emission reduction and environmental protection are major events that every country must strive to do. Especially after the Copenhagen climate conference in Denmark at the end of 2009, people in all countries have become more aware of energy conservation and emission reductions. The importance of protecting the environment. The EU's fuel engine emission standards are a positive measure for low-carbon, energy-saving and emission-reduction and environmental protection. For the construction machinery enterprises exporting to the European market, the new standards will have some influence on the export of the enterprises. Enterprises should strengthen the adjustment of industrial structure, ensure the quality of products, and improve the research and development capabilities of core components such as engines, which is beneficial to the long-term development of enterprises and the entire construction machinery industry.
An expert who has long been engaged in the certification of diesel engine emission standards stated that the EU IIIB emission standards have imposed stricter restrictions on the emission of particulates from the engine, from the original 0.2 g/kWh to 0.025 g/kWh. To meet this limit, diesel engines must be equipped with particulate filters to solve this problem. This means that the cost will increase further.
Export thresholds to improve profit reduction In recent years, domestic infrastructure construction has been booming. Chinese construction machinery companies such as XCMG, Zoomlion, and Sany Heavy Industry have achieved a leap-forward development. All of the above-mentioned enterprises have proposed the development of “100 billion yuanâ€. planning. According to the plan, overseas markets account for a large proportion, and whether Chinese construction machinery products can enter the international market in large numbers will face enormous challenges.
It is understood that as most of the domestic engines have not yet reached the export requirements, they can only purchase foreign brands of engines. Such as a 5-ton loader, domestic engine prices are between 40,000 to 50,000 yuan, while foreign brands need 70,000 to 80,000 yuan. Enterprises as purchasers can only increase costs and reduce profits. “The biggest advantage of China’s construction machinery is its price. Purchasing a higher-standard foreign engine will further increase the cost of the product and weaken the export competitiveness of the product.†The relevant experts are not worried.
Although there is no near-worry but need to be far-reaching for the EU to implement the phase IIIB emission standards, both the industry experts and production companies, that the recent impact on exports is not. The reason is that currently China's construction machinery manufacturing enterprises, represented by XCMG, Zoomlion, Sany Heavy Industry, and Guangxi Liugong, are mainly exporting their products to Asia, Africa, and Latin America, and the European Union has formulated new emissions. Standards have some impact on product exports, but the impact is not great.
He Zaihua, a senior research fellow at China Investment Consulting, pointed out that engine and hydraulic components are the two core components of construction machinery. In this regard, Caterpillar has world-leading technology. On the other hand, the localization of engines and hydraulic components is not high in the domestic market. Most of them need to be imported, although some companies headed by XCMG are making breakthroughs in engines, but at this stage they are far from reaching their own levels. In other words, it is impractical to talk about exports in terms of engines and hydraulic components at this stage. .
He Zaihua emphasized that the promulgation of new EU emission standards has little effect on the current domestic market's exports, but it can affect imports. Most of the imported products are international brands. They all belong to high-end products in terms of quality, performance and price, and the emission standards are promulgated. This will undoubtedly increase the production costs of manufacturers and increase export prices. This is undoubtedly a major challenge for Chinese manufacturers. The increase in procurement costs will further reduce the profitability of China’s construction machinery products and weaken international competition for products. The market space cultivated by price and price advantage will meet the standard attack.
The “2010-2015 China Machinery Industry Investment Analysis and Prospect Forecast Report†issued by China Investment Advisor shows that in the first half of 2010, excavators were taken as an example. Foreign brands such as Japan and South Korea still dominated the domestic market. Market share reached more than 70%.
Although domestic companies have effectively improved their production factors, they are still inconsistent with the world's largest market. The strategic structure and competitive structure of enterprises still need to be improved.
Experts pointed out that only product upgrades can keep up with the standard update, in order to seize the commanding heights of the market. At this stage, most domestic companies are still in the stage of making products. Only a few brand enterprises are doing technology. The future development of enterprises should be to become a standard enterprise. Therefore, in the increasingly fierce international competitive environment, domestic enterprises should look to the future. Taking environmental protection and energy conservation as breakthroughs, we try to walk in the front section of the market to avoid being eliminated by increasingly new standards.
Lu Renqi, vice president of the China Machinery Industry Federation, said that energy conservation, emission reduction and environmental protection are major events that every country must strive to do. Especially after the Copenhagen climate conference in Denmark at the end of 2009, people in all countries have become more aware of energy conservation and emission reductions. The importance of protecting the environment. The EU's fuel engine emission standards are a positive measure for low-carbon, energy-saving and emission-reduction and environmental protection. For the construction machinery enterprises exporting to the European market, the new standards will have some influence on the export of the enterprises. Enterprises should strengthen the adjustment of industrial structure, ensure the quality of products, and improve the research and development capabilities of core components such as engines, which is beneficial to the long-term development of enterprises and the entire construction machinery industry.
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