On March 30, 2012, the release conference for Yuchais new marine electric products was held at the headquarters in Yulin. YC12VC, YC12VT and YC8C, three independent engines integrating the advanced technologies of the worlds four famous renowned internal combustion engine research institutes, gained extensive praise due to characteristics such as energy conservation, high efficiency, light weight and environment friendliness. Yuchais momentum in releasing three marine electric engines makes a sharp contrast with an annual sales volume of only several thousand units two years ago when Yuchais marine electric sector was growing. The strategy of focusing on the marine electric sector has yielded a bumper harvest for Yuchai in the year of crisis.  

Seeking opportunities in market segments. 

Due to the sluggishness of the ship market in recent two years, a host of marine engine manufacturers have intensified low-speed engine R & D, but have seldom harvested. On the one hand, low-speed engines have high technical content and need long technical accumulation, whose technical level is hard to improve, thus restricting corporate development; on the other hand, enterprises blindly pursuing technology generally neglect market demands and get lost in development. How to seek markets suiting enterprises and how to position enterprises accurately have become required questions for enterprises to answer amid market sluggishness. However, Yuchai has its own understanding of these questions. 

Seeing Yuchais new products, it is easy to find YC12VC, YC12VT and YC8C all have clear market positions. YC12VT is applicable to 18m+ official ships and yachts, as well as onshore generating sets ranging from 700kW to 800kW; YC8C is applicable to carriers ranging from 5,000t to 7,000t, trawlers ranging from 40m to 60m, as well as onshore generating sets ranging from 800kW to 1,000kW and marine auxiliaries ranging from 600kW to 800kW. YC12VC is applicable to carriers, passenger liners and engineering vessels ranging from 7,000t to 8,000t, as well as onshore generating sets ranging from 1,200kW to 1,500kW. Clear market positioning has found the fastest way for Yuchai. As for the reason for focusing on these markets, Yuchai has its unique plan.

For a long time, fishing vessels made in China have accounted for a large proportion, Yuchai knows deeply that the market is non-negligible compared to engines for low-speed seagoing fishing vessels. Therefore, the new YC8C engine released by Yuchai tries to find a penetrating point of corporate development from fishing vessels. Such a trend is not impulsive. For years, Yuchai has actively expanded the spectrum of marine electric products and been committed to providing quality engines for Chinas fishery development. In marine electric R & D, Yuchai has established manufacturing bases in the headquarters in Yulin, Ziyang, Sichuan and Zhuhai, Guangdong. The base in the headquarters in Yulin mainly manufactures high-speed marine and generating diesel engines ranging from 40kW to 900kW, Ziyangs base mainly manufactures medium-speed marine engines ranging from 1,000kW to 5,000kW based on MANs technical platform, and Zhuhais base mainly manufactures low-speed diesel engines ranging from 6,000kW to 25,000kW based on Wartsilas technical platform. These engines can meet matching needs of various vessels for lakes, inland rivers, coasts and oceans in terms of power range, have obtained marine inspection certificates such as ZC, ZY, CCS and IMO and met requirements of diverse certifications. Employing its own advantage to seek suitable markets has made Yuchai achieve great leaps and fully shows the space and potential for the sustainable development of Yuchais marine electric business.

Now, facing such a broad marine electric market, Yuchai has taken vigorously developing marine electric products and strengthening its marine electric power sector as soon as possible as one of its critical development strategies. Guided by the strategy, Yuchais marine electric power has developed rapidly, occupied a position in the industrial market and built its brands in local markets. Since 2010, Yuchais annual sales volume of marine electric engines has topped 10,000 units. In 2011, Yuchai achieved a breakthrough in marine electric R & D to extend the maximum power to 1,650kW, thus further perfecting its power spectrum of marine electric products and sharpening its market competitiveness. In 2011, Yuchai sold 21,223 marine electric engines, up 112 percent year on year, registering a year-on-year increase of 114 percent in sales revenues. Within two years, the market share of Yuchais unit sales volume has jumped from 3 percent to 15 percent, thus acquiring the nickname as a black horse in the market from the industry. At the same time, Yuchais marine power marketing network has been perfected gradually, and an extensive and strong marine electric product marketing network consisting of more than 20 domestic distributors and several overseas distributors has been established; core customer cultivation has produced initial effects and market monitoring management has been standardized gradually. 

Pioneer of energy conservation and emission reduction 

Building green engines is also a trump card for Yuchai. Yuchais emission control technology keeps ahead at China. From National I in 1998 to Euro VI in 2011, Yuchai met the requirements of national emission regulations in advance. While marching into the marine engine market, Yuchai has implanted its green concept into the hearts of ships. 

Since introducing Chinas first YC6G National IV gas engine to establish its leading role in Chinas engine field, Yuchai has successively developed the worlds first renewable pneumatic hybrid engine and new energy engine, as well as advanced engines such as low-carbon, energy-conserving and high-efficiency engine, engine recovering waste heat and intelligent generating set. Yuchai has achieved remarkable effects in popularizing new energy-conserving technologies, materials, equipment and processes, thus reducing energy consumption and pollutant discharge and making positive contributions to natural environment improvement. Currently, the single-unit energy consumption of Yuchais full series of engines has dropped by 23 percent, thus effectively avoiding secondary pollution, accomplishing real green emission, making remarkable contributions to Chinas air treatment and environmental protection and making Yuchai Chinas green power leader.

To carry out its green concept in the full process of production, Yuchai has made great efforts to introduce internationally advanced equipment and technologies to establish first-class foundry, processing, assembling and testing lines in the industry, thus enormously reducing workers labor intensity, improving production efficiency and saving energy and raw materials. For example, the foundry center with a total investment of more than 2 billion yuan has totally changed the traditional image of foundry workers and drawn frequent and high attention from state leaders; in management, Yuchai conducts lean manufacturing, minimizes waste and has accomplished full-process control of low-carbon production.

The three new models appearing at the release conference included green engines which Yuchai is proud of. YC12VC makes full use of Yuchais R & D strength, uses Yuchais independent ECU technology, takes the lead in using electric-control monoblock pump technology among similar products and flexibly accomplishes accurate control, thus ensuring fuel economy. Besides, the body, upon CAE optimization analysis, uses horizontal bolt structure to effectively reduce overall vibration level and noise; and ensures overall performance and economy with the mature four-valve cylinder cover developed on Platform C. Also, Yuchai values details and safety, the exhaust pipe of YC12VC uses MPC structure to ensure good performance upon CFD optimization analysis. Almost no accessories are set in the view window and the intake pipe is set on the two sides to facilitate repair with good accessibility

To date, Yuchai Machinery Co., Ltd. has developed 14 marine engines series with displacements of ranging from 2.66L to 79.13L and powers of ranging from 32kW to 1,300kW; as well as 17 generating engine series with displacements of ranging from 2.66L to 79.13L and powers of ranging from 30kW to 1,650kW. The release of YC12VC, YC12VT and YC8C marks Yuchai has formed a complete product spectrum in the high-speed marine electric engine field, and has provided competitive products for machinery plants and distributors.

Cooperation for win-win

As a new player in the marine electric market, Yuchai knows deeply an enterprise should not only adhere to high product quality and high-end R & D, but also take quality services as the sharp weapon for market competition. Yuchais marine electric engine distributors vied for markets in respective areas and achieved good results in 2011, but Yuchai hopes to grow and cooperate with customers for win-win in 2012.

To better win markets, Yuchai has been actively establishing a professional sales system. To intensify professional operations in the marine electric market, Yuchai established the marine electric department in 2011 in charge of constructing the marine electric product marketing system, selling marine electric products, market development and auxiliary development, and established five resident regional offices in Central China, East China, North China, South China and West China. At the same time, Yuchai has further perfected its marine electric service network. As Yuchais marine electric product sale differs from its previous vehicle engine sale in terms of customer services, Yuchai peeled its customer services for marine electric products from customer services for vehicle engines and incorporated them into the marine electric department, and each regional institution assigns a full-time marine electric service supervisor to follow up customer services. Also, Yuchai has progressively established professional marine electric service outlets to synchronize Yuchais services with marine electric product sale, thus thoroughly freeing distributors and customers from worries. Now, Yuchai has unfolded its sales network worldwide, and has developed some 40 machinery matching plants, owned more than 40 marine electric distributors with tremendous comprehensive strength across the country, including more than 30 domestic distributors.

At the marine electric marketing conference for 2012, Yuchai rewarded outstanding marine electric distributors. The first prize of the outstanding award for marine electric distributors went to Shanghai Yueling Power Equipment Co., Ltd. Yueling deals in Yuchais products only, is loyal to Yuchai, has invested heavily in market development, pays attention to effective marketing organization, has adopted flexible sales means according to consumption characteristics of different customers, and achieved generating engine sales of 79.33 million yuan, up 440 percent year on year.

With quality marine engines and a host of outstanding distributors, Yuchais marine engine market will be rosy definitely. 

(Source: Liu Xiao, China Ship Survey)