China's internal combustion engine industry faces double challenges

In the 30 years of reform and opening up, China has become a major producer of internal combustion engines. To become a strong state of the internal combustion engine will be tested on both the market and the technical level.

After the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, China entered a new historical period of reform and opening up. Since then, China's internal combustion engine industry has also embarked on a new stage of rapid and healthy development.

According to statistics, in 1978, the annual output of China's internal combustion engine industry was 18.733 million kilowatts. In 2007, the annual output reached 57 million units and 1 billion kilowatts, and the total industrial output value reached 226.4 billion yuan. China has become a large-scale internal-combustion engine in the world, and it is moving toward the goal of a powerful internal combustion engine.

Ni Hongjie, Honorary Chairman of China Internal Combustion Engine Association, commented on the achievements made by the internal combustion engine industry over the past 30 years. “Through 30 years of construction, a modern, new type of internal combustion engine system that meets the needs of various sectors of the national economy has been initially established. The engine, as a driving force for mobile machinery, will The industrial system that was originally planned to be economically backward has been upgraded and upgraded.The development of construction machinery, ships, and military industries all require the support of the internal combustion engine industry. Without such a system as support, they cannot meet their requirements.

The ability of independent innovation has improved significantly

It is understood that in the past 30 years of reform and opening up, the scientific and technological level of internal combustion engines has been significantly improved. Especially in the past 10 years, the speed of product replacement has accelerated, basically satisfying all kinds of automobiles, motorcycles, agricultural machinery, engineering machinery, railway locomotives, and ships. , petroleum machinery, military and Other sectors supporting needs.

Ni Hongjie told the China Industry News reporter that the industry’s ability for independent innovation and development has been significantly improved in the past 30 years. He said that although the current level of technology, we still have a gap with foreign countries, but the Chinese internal combustion engine industry through the rapid development of 30 years of reform and opening up, is gradually narrowing this gap.

China's internal combustion engine industry has absorbed and trained a group of senior talents. Ni Hongjie believes that as a leader in the industry technology, high-tech talent has laid a very solid foundation for the sustained development of the internal combustion engine industry and supported the independent innovation and development of the industry.

The internal combustion engine industry has made significant achievements during the 30 years of reform and opening up. Ni Hongjie introduced that at present we have not only developed the Euro III, Euro IV, and Euro V engines, but also developed natural gas engines, stand-by fuel engines, and other products, improving the entire process of product design, development, production, and sales. Ni Hongjie said that “China's internal combustion engine industry has always taken the form of open and independent innovation, and the company has improved the research and development level of internal combustion engines through various means such as independent development, introduction of technology, and joint development.”

Two resources for two markets

It is understood that in the era of planned economy, the markets of all companies are facing the domestic market and are produced in accordance with the requirements of the government. Therefore, the industry has not been developed and the technological level lags far behind that of developed countries. Ni Hongjie stated that in the past 30 years of reform and opening up, the ideology and concepts of the leaders of internal combustion engine companies and those responsible for industrial associations have undergone a complete transformation. Enterprises have changed their management styles, and have changed from production and management models to product management and capital management.

After the reform and opening up, business leaders, including management personnel at all levels, had the opportunity to contact advanced foreign ideas and development concepts, and changed the old concept of their development in the government and the government. The company began to face two kinds of resources, two markets, to meet the needs of various industries in the country, but also began to actively explore foreign markets; not only make full use of existing domestic resources, but also through the introduction of foreign capital and advanced equipment to develop national industries.

Ni Hongjie believes that on the basis of large-scale joint ventures and cooperation, China's internal combustion engine industry is gradually integrated into the world's internal combustion engine industry system. Due to the cost and technical advantages of domestic enterprises, it has attracted a large number of foreign spare parts to China.

Recognize the situation and move forward to a strong country

Since the reform and opening up, China's internal combustion engine industry has developed rapidly and achieved great success. However, there are still many problems, such as excessive manufacturers, repeated introductions, and redundant construction. Overall, there is still a small gap between China's internal combustion engine and the international advanced level. Under the background that global manufacturing industries are facing industrial upgrading and seeking new energy sources, China's internal combustion engine industry faces the dual challenges of market and technology.

Ni Hongjie believes that in order to advance toward the goal of becoming a strong state of the internal combustion engine, we must first understand the development of the domestic and international situation, absorb advanced foreign technology, and develop our national industry through various forms such as consultation, introduction, and cooperative development. He said, “Some domestic companies have done well in the past, but they have stagnated in recent years, showing declines in market share, product varieties, and other aspects. This is mainly due to the lack of correct ideas, ideas determine the corporate development policy, Therefore, we must have the right ideas for business development."

Under the premise that China's equipment manufacturing industry should take a new road to industrialization, China's internal combustion engine industry must strengthen independent innovation, realize product leapfrogging from the low end of the value chain to the high end, and accelerate the independent development of the self-branded passenger car allocation dynamics. Ni Hongjie said, “The development of the industry can't stop. When we catch up, others are also progressing. If China wants to become a strong country of the internal combustion engine, it must make breakthroughs in the development of science and technology and new products. Only in this way can we be in the world. The biggest sign of a powerful country is that it has strong independent innovation capabilities, has its own brand name, and can develop the most advanced products in the world today. This is true for the industry and it is even more true for companies."

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