New thinking will drive Yuchai's new development


On February 26, 2006, it was an unusual day for Yuchai Machinery. Yuchai Machinery's 2006 strategic release and marketing service conference was held in Yulin, Guangxi. Yuchai’s new chairman, Junping, was released at the meeting. Yuchai Group's 10-year development strategy and goal planning; grandly launched the first domestic Euro IV diesel engine YC6L-40 with independent intellectual property rights, and presented it to Beijing Public Transport Holdings (Group) Co., Ltd. to express Yuchai Providing the green power for the society and assisting the wishes of the Beijing Olympics; held the ceremony of off-line production of 1 000 Euro III products, marking the mass production and use of domestic Euro III diesel engines.

2006 was the first year of China's "Eleventh Five-Year Plan". Yuchai had just held this series of events during this crucial period, sending a clear signal that Yuchai had caught the dragon's future development. In the new round of industrial competition, Yuchai has already seized the opportunity.

New thinking, new development, Yuchai passed an extraordinary 2005

In May 2005, Yu Ping, the new chairman of Yuchai, took office. At the critical moment when the new and old leadership teams alternated, Yuchai faced the most severe test of the diesel engine market situation. Due to the influence of the national macro-control policies, rising oil prices, and tightening auto consumption credit, the domestic auto industry and the road transport industry have been falling all the way. The engine market has continued to slump, and the total production and sales volume of the internal combustion engine industry has shown a negative growth trend.

In such a difficult market situation, Yuchai’s new leadership team with Yuping as the core chairman reviewed the situation, introduced new thinking, and developed strategic planning, organizational functions and responsibilities, sound management systems, asset optimization and restructuring, and new products. A series of fruitful reforms have been implemented in development, marketing and construction, talent introduction and incentives, and successfully achieved a major reversal under the declining trend of the industry. The production, sales volume and operating income of diesel engines have reached a record high. In 2005, Yuchai Machinery Co., Ltd. produced and sold 230,000 diesel engines, an increase of 16% over the same period in 2004; sales revenue reached 7 billion yuan, an increase of 9% year-on-year, bringing vitality to the depressed diesel engine market. The results stem from many efforts.

1. Technological innovation

In the pursuit of the company's market, Yuchai is not the only one who has a low hand, and has no taste. It is very clear that the brand ultimately depends on the user to have the final say, and has to do a good job in product development.

“Leading in technological innovation is Yuchai’s competitive advantage and the key to supporting Yuchai’s victory in 2005. Scientific and technological innovation has always been the source of Yuchai’s driving force.” In an interview with reporters, Yu Ping’s chairman said. In 2005, Yuchai increased its investment in new technology research and product innovation, invested 130 million yuan in technology development, completed 32.72 million yuan in technological transformation, and achieved a number of technological advancements and innovations. Focusing on the two major themes of energy conservation and environmental protection, we have adopted an independent technological innovation route that “enhances product technology level and perfects product structure” so that the entire series of products will lead in technology. Prior to the implementation of the national emission regulations, the 9 major series of products reached the European standard for Euro III, 6A and 6L engines, which met the European IV standards. They also put 4W of diesel engines for passenger vehicles into the market in small batches, filling the gap in the domestic diesel engine.

2. Brand service

In accordance with the requirements of brand services, Yuchai refreshed the service management system, systematically incorporated the service tenet, logo language, service philosophy, service standards, and service commitments into a “five in one,” and clarified the direction of service development. The quality commitment and service commitment have also been raised to a higher goal: the warranty lengths for six-cylinder and four-cylinder engines for trucks and buses have been increased from 100,000 km/18 months to 180,000 km/18 months and 150,000 km/18 respectively. Month: The number of bus engines increased from 100,000 km/18 months to 150,000 km/18 months; Engines for construction vehicles, tractors, agricultural vehicles, and modified vehicles increased from 50,000 km/12 months to 80,000 km/12 months.

3. Joint marketing

Yuchai closely focused on the promotion of heavy machinery, light machinery, Euro III machines, and single fuel machines, and jointly launched a series of marketing strategies with auto companies: formulating the overall action plan of Yuba Heavy Machinery, and promoting it as a heavy machine. At the core, it is disassembled into major manufacturers and promotes the promotion of heavy machinery in “one plant, one policy”, and actively cooperates with the host plant to conduct product promotion meetings or dealerships, etc., and participates in Liuzhou “Balong Yuchai Heavy Machinery” products for the whole year. The promotion activities such as the promotion conference, Chongqing Red Rock Red Rock “Red Storm” national tour exhibition activity, and JAC Gehlfa heavy truck new product promotion conference, achieved significant results through the cooperative marketing to expand the sales of the whole vehicle plant products to the diesel engine.

While focusing on the domestic market, Yuchai provided supporting export business support for major domestic automakers. Through strong cooperation with OEMs, Yuchai Diesel Engine made breakthroughs in exports. In 2005, Yuchai completed diesel engine exports of 4,000 units, an increase of approximately 122% year-on-year, and achieved sales revenue of 128.05 million yuan, a year-on-year increase of more than 100%. Overseas markets have become a new economic growth point for Yuchai.

Strategic planning, Yuchai will move toward a more brilliant 2006

“The senior level of Yuchai Group will take the revitalization of the national industry as its responsibility, and strive to build a world with powerful power.” This is the clear statement of the chairman of the board of directors at the beginning of the inauguration of Yuping Group and the future development of Yuchai. aims. Now, Yuchai people have already begun to move toward this goal.

1. Continue to fight heavy truck market

The vagaries of the engine market and the inherent conditions of Yuchai’s independent manufacturers have helped Yuchai’s keen sense of smell. In 2005, Yuchai formulated a strategic decision for the development of heavy machinery, and put its carefully crafted heavy-duty diesel engine product, Yuchai Yuba Heavy Machinery YC6M, on the market.

After one year of promotion, the YC6M heavy machine has been determinable in the market, and users have a good evaluation of it: large power, explosive power, strong climbing ability, and fuel economy. It is reported that the current YC6 machine has a market of about 6,500 units. The target sales volume in 2006 was 25,000 units.

The outstanding performance of YC6M heavy machinery in the market has aroused widespread concern in the industry. Many heavy truck plants and special vehicle manufacturers generally believe that this engine is the ideal driving force for the upgrading of heavy-duty engines in China. Some dealers predicted that YC6M heavy machines developed with a high starting point and high standards will occupy more than 1/2 of the 9-10 L engine market after 2 years of promotion. This is exactly Yuchai’s own goal.

2. Technology first - promotion of Euro III, Euro IV engines

As a leading company in the Chinese diesel engine industry, Yuchai has always been at the forefront of China's internal combustion engine independent innovation technology. The launch of the first 1,000 units of the Euro III diesel engine and the launch of the Euro IV diesel engine marked the large-scale development of the “green power” strategy of Yuchai.

According to Dr. Li Qin, Yuchai's senior technical consultant, the YC6L-40, which meets Euro IV emissions, has broken the technical bottleneck that has plagued the internal combustion engine industry for years to reduce emissions and save fuel and energy, and has adopted electronically controlled injection technology and post-discharge treatment technology. Emissions have reached Euro IV standards, pollution has been greatly reduced, and they are also more fuel efficient than Euro III products. They have the advantages of high power, low emissions, low noise, and high reliability, and are suitable for bus and other power needs. This is the crystallization of Yuchai’s cooperation with foreign institutions and its own intellectual property rights.

It is understood that since Yuchai launched the Euro III aircraft in 2004, the aircraft has been operating in cities such as Beijing and has gained market recognition. In 2005, 600 units have been sold, and in 2006 it will exceed 6 000 to 8 000 units. Euro IV will also use two to three years to achieve high volume sales.

3. To create a world-class "green power kingdom"

Based on the vision of “using Yuchai brand into a world-famous brand for 10 years or more,” Yuchai Group proposes a development strategy for the next 10 years: to fully launch domestic and international joint ventures, cooperation, and accelerating high-tech The introduction and application are the main methods, focusing on the development of the industry chain in the main industry, focusing on the development of diesel engines, construction machinery and diesel engine related products, and building Yuchai into a high-level, large-volume, multi-product variety and extensive coverage of power machinery and walking machinery. The production base and export base. By controlling and developing industries such as transmissions, logistics, and vehicles, the company will build a business platform with annual sales of more than 1,000 billion yuan and become a world-renowned brand of large multinational corporations.

In an interview with reporters, Mr. Yu Ping said: “In order to realize Yuchai’s new development strategic goals, we will adjust Yuchai’s property rights structure and industrial structure. In the property right structure, we will pay more attention to the introduction of industrial shareholders. At the same time, it does not reject the participation of financial shareholders.In the industrial structure, Yuchai will focus on the automobile industry-led, industrial machinery and lubricants for the two wings, supplemented by three production as an adjustment of the industrial layout. In addition, in the enterprise management On the other hand, it will re-clarify its business objectives and establish more rational decision-making mechanisms, target mechanisms, human resources mechanisms, incentive mechanisms, and restraint mechanisms, and plan the construction of Yuchai’s “talented highland” at a new starting point to create better talent growth. The environment will attract more outstanding talents to gather in Yuchai, thus promoting Yuchai's vigorous development."

As China’s largest production base for internal combustion engines, Yuchai is changing the competitive landscape of China’s diesel engine market, and is also laying the foundation for building a world-class “green power kingdom”. In the new period of the “Eleventh Five-Year Plan”, Yuchai will continue to take the independent research and development road and build a world-renowned brand. (Jiangnan)
View related topics: Yuchai won the "China Brand Annual Award NO.1" (internal combustion engine) title in 2007


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