Corporate News
Date:
2007-07-02
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The benefit of National-4 engine has future

An exclusive interview with the deputy general manager of Guangxi Yuchai Machinery Co.Ltd-Liang Heping

    Guangxi Yuchai Machinery Co. Ltd during the Sixth Beijing International Business Automobile Exhibition officially introduced the YC6L280-40 National-4 engine to the market.
 
    It has been more than one year since Yuchai announced the first National-4 engine in China on February 26 last year. It took Yuchai a year to turn the model to production. Yuchai participated in a bidding issued by Beijing Bus with the National-4 engine, competed with overseas brands such as Cummins and Iveco, and expected to get one third of the contract of 1000 National-4 engines. Yuchai was the only domestic enterprise among the bidders.
 
    Why did Yuchai research and develop the National-4 engine before the conditions such as domestic oil product, technology and market demand were still not mature? The deputy general manager of Yuchai, Liang Heping, who's directly in charge of the development of Yuchai National-4 engine, answered the question when interviewed by the Business Automobile News.
 
Yuchai deputy general manager, Liang Heping
 
    Liang Heping told the reporter that before 2006, Yuchai mainly engaged in research and development. In 2006, Yuchai shifted its focus to production, including cost control, preparation, coherence of production process, etc., and made it possible to put the National-4 engines into mass production. "We now have the capability of mass production of National-4 engines, and are working on parts supply and the support service system after sale. " Lian Heping told the reporter.
 
    Liang Heping said when the National-1 and National-2 engines were on the market, domestic internal combustion engine enterprises didn't have much market share. Learn the listen Yuchai had already developed 6L, 6G and 4G National-3 electric control diesel engines When China started implementing the National-3 emission standard. That put Yuchai ahead of all domestic competitors and to get more market shares in 2006. "But in the first half year of 2006, Yuchai still had a hard time competing with foreign brands on the National-3 engine market due to out of date technology. After one year development, the production of Yuchai was accepted by the market. In the first season of 2007, Yuchai has sold more than 1000 pieces of National-3 bus engines increasing 150% over last year."
 
    All this explained why Yuchai researched and developed the National-4 engine beforehand. Yuchai understood that the productions that enter the market first will gains the most profit. Yuchai had been actively working on the preparation of National-4 engines.
    "Practically speaking, the environment must be improved for the Beijing Olympic Games to be held next year. Beijing already issued the National-4 emission standard, and created demands for National 4 Engines. The emission standard will be more and more strict, and the National-4 is to make benefit in the future. We are looking at the long term benefit" said Liang Heping.
 
    Liang Heping told the reporter that Yuchai invested 25 million yuan on the research and development of National-4 engine, with investment on production line and other miscellanies expenses as extra. The main issues for Yuchai were cost control and structure optimization. We had to import the after sale treatment technology since the technology was not mature in China. It was not good for cost control for mass production. To meet the National-4 emission standard, it was not just simply add the electric control and post treatment on normal engines. The key point is to optimize the whole structure of the engine production process from design to production which needs thorough researches on new materials and engine mechanism. Liang Heping believed that up to date the oil product was not an issue for the use of the National-4 engines since there is high quality oil supply in big cities such as Beijing and Shanghai. On other hand China is improving the facilities for oil supply.
                
                                                                                                                                     (writer:YU Chunyu)
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