International Combustion Engine Giant Increases Investment in China's Market

According to the latest data obtained from the Organizing Committee of the 11th China International Combustion Engine and Components Exhibition in 2012, under the situation of the global economic downturn, Chinese domestic companies generally performed cautiously at the exhibition publicity, while the United States Neville Starcom, Russia's GAZ, Japan's Hino, Germany's Bosch and other international combustion engine giants have generally increased their investment in the Chinese market. From one aspect, it shows the confidence of international internal combustion engine companies in the Chinese market and the lack of long-term strategic planning for domestic enterprises.

In recent years, with the highly prosperous Chinese real estate industry and the large-scale investment of the Chinese government in the infrastructure sector, the commercial automobile and construction machinery industry has also developed rapidly. In addition, the scale of China’s agriculture has also led to the rapid development of the agricultural machinery industry. As a result, the internal combustion engine industry, which is the upper reaches of the industrial chain, is also catching up with the Chinese economy. The annual growth rate is above 20%. Many internal combustion engine companies' products are not sold out, and they can be sold as long as they can be produced. By the first quarter of 2012, the total output value of China's internal combustion engine industry was 73.39 billion yuan, an increase of 7.66% year-on-year; sales revenue was 70.23 billion yuan, an increase of 5.82% over the same period of last year; total output power was 347 million kilowatts, down 4.69% year-on-year. The value of export delivery was 9.54 billion yuan, a year-on-year increase of 2.08%, and the decline in the growth rate was very significant.

With the continuous economic crisis in the world, neo-conservatives represented by fiscal austerity and trade barriers have begun to gain the upper hand, and the trend of European and American economies falling into long-term low growth and even stagnation is evident. China's economy is facing a situation in which the external trade environment is deteriorating. The performance of the international combustion engine giants in the increasingly depressed European and American traditional markets has been declining. They are looking for new alternative market growth points. From the perspective of the current world economic structure, China is the only choice.

From the domestic point of view, the four trillion economic stimulus policies after 2008 have gradually shown some undesirable consequences. First, the high inflation caused by excessive investment in 2009-2010 pushed up the CPI quickly, making it unbearable to the general public and leading to a bubble in the real estate industry. Afterwards, it began to implement a policy of restraining investment so as to control the real estate bubble and CPI. Because China has not yet established sound domestic demand-driven economic growth, it has to rely on large-scale investment by the government to stimulate the economy, and the internal combustion engine industry is benefiting from investment-driven economic growth. Therefore, the current economic downturn will inevitably affect the development of the internal combustion engine industry.

However, as a long-term stable development of the internal combustion engine industry enterprises, the current economic instability can not be reduced to market investment, and even the reasons for investment in technology research and development. We see that the more we are at such moments. International-type internal combustion engines have greatly increased their investment in the Chinese market. At the 11th China International Combustion Engine and Components Expo 2012, which will be opened on September 12, China's internal combustion engine industry will see more international internal combustion engine companies, more advanced internal combustion engine technologies and products, and more. Many international internal combustion engine people.

According to the latest news, GAZ, Russia’s largest internal-combustion engine manufacturer, will bring a number of high-tech and high-performance internal-combustion engine products to the high-profile debut of this ICV. Navistar, which has already gained a lot in the Chinese market, has also expanded nearly three times more than previous years. One-half of the booth area, and will display the latest internal combustion engine products; US internal combustion engine technology giant Carpenter also increased the investment in this exhibition. In addition, international internal combustion engine companies such as Japan's Honda, Isuzu, Ishikawajima, Daewoo Korea, and Weill UK have generally expanded their investment in this exhibition. In contrast, domestic internal combustion engine companies generally show conservativeness and caution. Domestic ICE giants Weichai, Yuchai, and Xichai spent the same amount of money on exhibitions as in 2011. Most other companies did not expand their booth space, and some companies even reduced their investment.

In the long run, an international company must have long-term corporate development plans. It should not reduce its investment in the corporate market because of the economic downturn. On the contrary, the more it is needed, the more investment it needs to take to seize the opportunity. , to maximize the brand's influence. From this point of view, domestic internal combustion engine companies have a long way to go.

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