In 2014, Cummins was doomed to be extraordinary. As a company with a large business segment and focused on internal combustion engine manufacturing and full-value-chain service, Cummins made frequent moves in 2014: domestic ISG heavy-duty engines and high-end heavy truck Auman. Natural gas engines, emphasizing the value of energy saving and emission reduction win-win; As Cummins' youngest joint venture in China, Guangxi Cummins ushered in the production of thousands of engines off the assembly line. No wonder Cummins himself admits that 2014 is probably the busiest and most prolific year. Liu Xiaoxing, Cummins's global vice president, said at the media meeting that in addition to minibuses and forklifts, China's commercial vehicle industry was relatively sluggish in 2014, and its growth rate had dropped significantly. “But fortunately, Cummins has made a difficult breakthrough in 2014 and has risen against the trend and is expected to achieve double-digit growth.â€
Cummins Global Vice President Liu Xiaoxing
Break through the tide of adversity, create a bright spot
According to the production and sales data released by the China Automobile Association, in 2014, the commercial vehicle market cumulatively produced 3,803,095 units and 3,791,324 units, representing a decrease of 5.69% and 6.53%, respectively, from the cumulative sales in 2013.
Due to the dual impact of sluggish market demand and the National IV emission standards, the domestic truck market has dropped by 9% overall. The decline in sales of complete vehicles has caused a significant contraction in sales of supporting engines.
In contrast, with the advantage of mid- to high-end commercial vehicle segmentation, the sales of Cummins engines have risen in contrarian directions, and have also become one of the few parts and components companies that have performed outstandingly in the Chinese market.
In 2014, Beiqi Foton Motor Co., Ltd. sold nearly 510,000 trucks of various types. Although the overall sales volume of its light trucks declined, the Omagh brand and the Ao Ling CTX brand carrying the Cummins ISF engine increased significantly. It is understood that Foton Omarco harvested bulk orders in multiple locations in 2014, with a market growth rate of 50%.
ISG's initial victory in the layout of the heavy truck engine
Cummins has always been unique in the field of light truck engines. With its impressive dynamics, economy, durability, and excellent emission performance, Cummins has a prominent reputation.
On June 7 last year, the new plant at Beijing Cummins Cummins ushered in the mass production off-line ceremony for Cummins ISG series heavy-duty engines. It provided strategic support for Cummins’ business expansion in China. The mass production of ISG series heavy-duty engines has achieved a high degree of integration of fuel economy, handling and reliability.
It is understood that the in-line six-cylinder Cummins ISG series of heavy-duty engines, currently a total of two models ISG11L and ISG12L to the market, the power section 310-512 hp (228-382 kW), to meet the global market a wide range of different needs and different stages of emissions standard.
No wonder Liu Xiaoxing said with certainty: “The previous engine products were based on market habits and product samples from North America and Europe. The ISG engine emphasizes that designing and developing R&D for the Chinese market is of great significance to Cummins.â€
In the five years of R&D history, ISG engine has passed 60,000 hours of bench testing and over 6 million kilometers of road tests. It is in this globally linked design mode that advanced technologies have been developed to achieve high Adaptive product platform. The listing in 2014 will meet Euro IV, China IV and Euro V emission standards. The same platform can be upgraded to Euro VI emission standards.
Devaluation of natural gas engine to strengthen the value of the entire industry chain
In view of Liu Xiaoxing, Cummins not only needs to introduce the most advanced technology and internationally into China, but also needs to deeply cultivate China's mainstream market and tailor the most suitable products and technologies to meet customer needs. Link global resources, promote local R&D, local production, and local services to respond quickly to customer needs.
With a large number of Chinese passenger car and truck manufacturers starting to produce natural gas vehicles, the increasing popularity of natural gas filling stations and the attractive price advantage of natural gas, China is becoming the world’s most important natural gas engine market, and the local production of natural gas engines is also The important layout of Cummins' global natural gas strategy.
The launch of the L8.9G natural gas engine embodies the major theme of Cummins's energy conservation and emission reduction in China's commercial vehicles. It is the first natural gas engine Cummins built specifically for the Chinese market and has undergone many rigorous tests to meet a variety of operating conditions and needs.
In order to ensure the promotion of natural gas engines, Cummins dispatched a team of senior technicians on-site at the vehicle factory. At the same time, factory, branch offices, and on-site three-level spare parts were prepared and equipment was provided to ensure rapid response. In addition, service technicians at the vehicle manufacturer are also trained.
“In 2015, we will usher in the 40th anniversary of the development of Cummins in China. We emphasize the rooting of the industry, the advancement of the industry, and the growth of the industry.†Liu Xiaoxing said, “Starting from the full value chain, including product manufacturing, manufacturing, matching, sales and remanufacturing In other areas, we will promote energy conservation and emission reduction to achieve a win-win situation."
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