2006 China Automotive Engine Industry Research Report

According to statistics released by the National Development and Reform Commission for key industries in the first three quarters of 2006, the Chinese auto industry continues to maintain rapid growth. Information shows that in the first three quarters, the overall profit of the auto industry was 52.9 billion yuan, an increase of 47.5% year-on-year, making it one of the fastest growing industries in China's industry.

From the overall situation of the production and sales of the automobile industry in the first three quarters of 2006, the production and sales situation of the entire industry maintained a good development, the growth rate of passenger vehicles was obvious, and commercial vehicles ended the trend of slump. As of the end of September, the production and sales of automobiles both exceeded 5 million, reaching 5.28 million and 5.17 million, respectively, an increase of 26% and 25% respectively year-on-year. Among them, passenger car production and sales were 3.78 million and 3.68 million, an increase of 33% and 31% year-on-year; commercial vehicles were sold and sold 1.5 million and 1.49 million, an increase of 11% and 12% respectively.

Due to the rapid development of the automotive industry, it has driven the supporting automotive engine market. At present, the matching relationship between the engine and the vehicle in China shows that passenger cars and commercial vehicles have great differences in engine applications. Passenger cars mostly use gasoline engines. Commercial vehicles, especially large and medium-sized commercial vehicles, mostly use diesel engines. The gap between vehicle production and engine production has gradually widened. It has increased from 80,000 units in 1998 to nearly 1 million units in 2005. The increase in this gap is mainly due to the fact that most of the joint venture brand cars use imported engines. From January to July 2006, China's total vehicle output was 4.133 million, which was a difference of 500,000 units from the output of automobile engines. It is expected that the gap between 2006 and 2006 will still be around 1 million units.

In the first half of 2006, as the rapid growth of passenger vehicles led to the rapid growth in the production and sales volume of gasoline engines, the share of total production and sales of vehicle engines increased by 4.78 and 4.44 percentage points, respectively. Due to the drastic decline in the production and sales volume of heavy-duty trucks and medium-sized goods vehicles and the lack of growth in semi-trailer and non-integrated models, the diesel engine’s production and sales growth in the first half of the year was only 13.45% and 14.8%, which was lower than the increase in production and sales of car engines 21.31 and l9. .92%, the share of the total production and sales volume of automotive engines has fallen sharply, and the lost share has been completely occupied by gasoline engines. Other fuel engines have a small share of automotive engines. From January to July, the trend of the production ratio of diesel engines for vehicles and gasoline engines for vehicles shows that the ratio of diesel engines to total engine output remained within 30%, while the ratio of gasoline engine production in June to total engine production reached nearly 80. %, the fluctuation of these ratios is closely related to the fluctuation of production and sales of commercial vehicles and passenger cars that are equipped with diesel and gasoline engines.

China's automotive engine market environment, production and sales, and key production companies are the focus of this report. Based on the analysis of core companies, the development of Chinese diesel engines and gasoline engines is discussed. The data of this report comes from the National Bureau of Statistics, the National Development and Reform Commission, the Automobile Industry Association and other authoritative organizations as well as the company’s financial reports.