Analysis of Five "Typical" Phenomenon in Truck Diesel Engine Industry


In recent years, the diesel engine industry for trucks has shown rapid development. On the one hand, the industry is in good condition. On the other hand, the product structure and sales structure of the industry are rapidly changing. These indicate that the diesel engine industry for trucks is developing healthily towards a good development trend. However, there are some typical phenomena behind this kind of good development tendency. These typical phenomena have certain inevitability and contingency at the present stage of our market, so these phenomena are worthy of research and analysis.

One of the "typical" phenomena - the degree of fierce market competition faced by companies is different.

On the one hand, diesel companies in the system are even more brutally competitive

This kind of enterprise refers to those diesel companies that are affiliated with a truck manufacturing company. At present, these diesel engine manufacturers mainly include:

Diesel engine company affiliated truck company

Dalian Diesel Engine Factory and Wuxi Diesel Engine Factory First Automotive Group Corporation

Dongfeng Cummins Corporation and Dongfeng Engine Factory Dongfeng Motor Group Corporation

Weifang Diesel Engine Factory and Hangzhou Automobile Engine Factory China National Heavy Duty Truck Group Corporation

It cannot be overemphasized that these words are used in the same terms as "conspiracy in the same room," "infighting and fighting against each other," and "abuse and hurry." This kind of competition consumes the resources of these companies in a large scale and in depth, and the result of the struggle is both defeated. This not only causes the increase of enterprise costs and profits, but also consumes part of the energy of the enterprise. The non-essential aspects of efficiency and non-efficiency are not beneficial to the long-term development of the company.

Based on the actual situation, these manufacturers are more or less competing in the market in the following three areas with different levels of "sister brothers":

Field 1: Competing on the market share within the parent company. At this time, the diesel engine companies in the system must match the existing vehicle models, match new vehicle models of new vehicles, match new products on specific models, and complete vehicles. The fierce competition in the marketing field (mainly on the marketing network platform);

Field 2: Competition in the direction of future development, which is mainly reflected in the competition of the company's parent company's product planning and product investment projects, winning the investment project or being in a favorable position in the product planning. Win the opportunity for future development and growth and survival for yourself;

Field 3: Competition in diesel service systems.

It can be said that the scope of competition is very extensive, involving multiple marketing areas, and the means are also diverse, interpersonal, and market-based.

The reason why the competition among these manufacturers is so cruel is mainly because: their respective products are basically the same. Even the most basic original design drawings are the same. The difference is the craftsmanship and some spare parts. The twin brothers are common; secondly, the target market for the products is basically the same. The target market here means that the major target auto manufacturers and the main matching vehicles are basically the same; the third one is very familiar with each other, even for other diesel engines. However, enterprises have little or no idea that this is because the company’s business vision is too narrow. Fourth, the parent company’s indulge in the “competing and closing the eyes” of its own diesel engine's competitive behavior. Attitude, which is the most direct cause of this intensified competition, is also one of the means by which the parent company controls its own diesel engine business from another perspective.

Of course, if the parent company is in good operating condition, it can basically digest the production capacity of its own diesel engine company. The result of the market competition is happy; however, when the parent company's operating sales condition is not good, the market competition is cruel. Sexuality has emerged, and there will always be companies that have experienced a decline in their operating conditions because of “failure to eat”. This is inevitable.

On the other hand, companies outside the system can easily cope with competition, and life is exceptionally nourishing.

At present, diesel engine companies outside the system mainly include: Yulin Diesel Engine Factory and Shanghai Diesel Engine Factory. They are not affiliated with any truck group. There are no restrictions on the sales of products. In recent years, these companies have developed rapidly and have experienced exceptionally nourishing days.

The reason is that these companies have seized and fully exploited the opportunities of market development: the market opportunity points formed by the success and rise of some new entrants to the truck industry.

Three factors make the diesel engine enterprises outside the system seize this market opportunity point: One factor is that the diesel engine companies in the system supply these new entrants with different degrees of restrictions. Such restrictions mainly come from their own parent companies, of course, the means of restriction. The methods are also varied. This is due to the consideration of the implementation of strategic resources for trucks; the other factor is that new entrants in these industries are considering to obtain a relatively stable supply of diesel resources, and also to avoid making FAW and Dongfeng. Companies that limit their own production capacity (new entrants will be constrained by existing vehicle companies in terms of diesel resources) are also considering certain differences from existing products on the market; the third factor is new entry. For the sake of research and development risk, if the product of the diesel engine company in the system is used as a technical solution to develop the vehicle, the vehicle will be destroyed if the entire vehicle product is prematurely terminated due to containment of the diesel engine resources or the profitability is poor. The initial investment in the product sinks into the sea, and new entrants will suffer, and sometimes such attacks may even have It is fatal. Under these factors, the diesel engine manufacturers outside the system naturally become the main matching power for these new entrants, occupying the "blind spots" that appear in the market, and accompany these new entrants and support each other to grow together. In order to achieve a win-win situation for both sides of the market.

The sales of diesel engine companies in the system are subject to certain restrictions, which also results in a decrease in the number of competitors faced by the enterprises outside the system when opening up the target market. As a result, the intensity of market competition activities they participate in is also insufficient.

"Typical" Phenomenon II - In order to meet the market demand, give products "pull"

According to the current diesel engine technology level, technical equipment, parts quality and design level, according to China's steel smelting level, China's current truck diesel engine market mainstream product ------ litre displacement diesel engine The best power level is between 140-180 hp. The quality of the product at this power level (usually measured by the reliability of the product) is the best. This is why during the early to mid-1990s, diesel engines of some domestic manufacturers were able to guarantee a high-quality level of 500,000 km without major repairs, thus forming a good reputation among users.

However, in recent years, with the increasing demand for high-power diesel engines in China's commercial vehicle market, various diesel engine manufacturers have invariably adopted the “repair and repair” approach to increase the power level of diesel engines. After passing through the same diesel engine platform that year, After the repair of the wheel, its maximum power level has reached about 300 horsepower, and its power level has doubled.

This is an improvement on the diesel engine's "deepening and fuelling" type. Although this improvement meets the market's needs to a certain extent, it is at the expense of diesel engine's product quality. The diesel engine's overhaul mileage, average failure mileage, and average Key reliability indicators such as fault interval mileage are declining, and the failure rate of diesel engines is also constantly increasing. The reason is that the mechanical load and heat load of some parts of the diesel engine at this time have been improved to varying degrees. For the user, if the diesel engine fails, it will cause the vehicle to stop running, resulting in a series of losses (possibly including - loss of diesel engine maintenance, loss of vehicle shipping, loss of transportation time, loss of potential freight The losses caused by the opportunities, etc.), so the users complained, the number of complaints such as quality disputes, quality joint claims, etc. rose every year. This is the bitter result of the product's “pulling seedlings and encouragement”. At present, some diesel engine companies are tasting this bitter fruit, and the cost of service links is always high, which is really miserable. But even so, diesel engine manufacturers still continue this kind of method of “pulling and boosting”, because there is no other method for the enterprise, and developing a brand new platform product is undoubtedly “there is no way to hydrolyze the near thirst”.

The main reasons for this are: First, the domestic diesel engine manufacturers have a single product platform, mainly 7-8 liters of diesel engine; Second, even if some manufacturers have developed a large displacement product platform, but this product platform The displacement is not much larger than that of traditional products, and this product platform is also realized by expanding the cylinder diameter or increasing the stroke on the basis of the original product platform; Third, it is difficult for the diesel engine manufacturers to achieve technical breakthroughs. There are difficulties in technology (own technology and component technologies), difficulties in application (technology level, equipment assurance, model matching, etc.), and difficulties in funding (R&D funds, equipment renewal funds, etc.).

"Typical" Phenomenon 3 - Marketing and product development are the "soft ribs" of diesel engine companies.

Many domestic companies’ leaders have advertised their own companies as “dumbbells”. That is, one end of the “dumbbell” is the marketing of the company, and the other end of the “dumbbell” is the product development of the company. However, the actual situation is that companies tend to be relatively weak in these two aspects. At present, these two areas are the biggest gap between Chinese companies and foreign companies, and they are also the most important factors that cause differences in market competitiveness. This is the case in the diesel engine industry for trucks. Marketing and product development are the “soft ribs” of companies. Its main performance in the following aspects -

On the one hand: product development

Diesel engine companies have a long way to go from real R&D companies, mainly in:

First, product development has only been carried out on the same product platform for many years. At best, it is only the improvement of platform products. This platform product has already gone through nearly two or thirty years, which is itself a "typical" phenomenon;

Second, project management work and capabilities of product development are relatively weak. Mainly in the lack of product development project management of high-quality personnel, foreign companies, product development project management personnel already responsible for product development work, but also responsible for product marketing, the so-called "product manager", so developed products To better meet market demand;

Third, the lack of necessary accumulation of product development, including the accumulation of human resources, the accumulation of research and development experience, the accumulation of experimental data, etc. These accumulations are very helpful for innovative product development.

As for problems such as product development time cannot be guaranteed, product quality is inborn defects, product development resources are coordinated and so on are caused by the above factors, and are the real crux of the matter.

On the other hand: marketing

The marketing of diesel engine companies is still at a relatively low level. In a word, the “marketing execution power” of diesel engine companies is relatively poor. The specific performance is as follows: First, important work such as marketing analysis, marketing management and control is not just started, it is still Without progress, the company's marketing work is still in the "extensive" stage; second, the marketing work still lacks a certain degree of planning and consistency from the overall situation, and the implementation of marketing plans is not enough. The randomness of marketing work is relatively large. Third, the diesel engine company's market has not combined the characteristics of products and industries with the general principles of marketing, thus forming a "market system with diesel engine characteristics," this system is the key and fundamental way to solve the marketing problem.

"Typical" Phenomenon IV - Generously Asked for International Technical Consultation for Product Development

In recent years, domestic diesel engine companies have invited foreign technical consulting agencies to give technical advice in order to improve the technical level and performance of their own diesel engines. This seems to have become a "fashionable", and in this pursuit of "fashionable" In the current trend, foreign technology consulting agencies have made a big profit.

Technical consultation with foreign technical consulting agencies to improve the technical level of diesel engines and related performance indicators, this matter is nothing, because today is a global economic society. However, the way of cooperation should attract the attention of domestic diesel engine companies. The quality of cooperation will determine the level of cooperation costs. The author believes that the following methods are not worth promoting and should be eliminated and avoided:

First, several different diesel engine manufacturers have the same model (the original drawings are exactly the same, which is a very common phenomenon in China's auto industry, and it is also a very vexing phenomenon). Each consults with the same technical consulting organization. The same technical issues, and signed a technical consulting contract. The final result is that the technical institution only made one work but received a number of technical consulting income. The income is really impressive! ! ! Here, the author makes an assumption - if these domestic diesel engine companies as a whole signed a contract with a foreign technology consulting agency, and the cost is to take the average burden of the method, then each diesel engine company can save how much money. It is hoped that this assumption will not be "a fantasy" one day.

The second is that it seems to have conducted technical consultations with foreign technical advisory bodies, and its own product is a good product. It can be advertised in a grand manner to promote "the relationship between the product and a certain foreign technology consulting agency" and so on. It seems that Become a prominent "selling point" for your diesel engine, but can this enhance the image of your own product? The author believes that it is precisely the image of foreign technology consulting agencies. Get your own pockets and advertise for others! ! ! Domestic diesel engine companies are really generous.

"Typical" Phenomenon 5 - International Cooperation to Introduce Elimination Technologies and Products, Production Lines

International cooperation has always been a good thing. It can quickly improve the level of product technology, improve the level of product technology support, improve the company's product competitiveness, and also increase the visibility of domestic enterprises to some extent.

However, in the actual operation of the company, some companies have unknowingly introduced the eliminated products and technologies of foreign companies, and at the same time sometimes imported production equipment and technological equipment that have been eliminated by foreign partners, making themselves foreign companies. Industrial Waste Acquisition Station. The introduction of products and technologies that have been phased out by foreign companies is the introduction of relatively backward products and technologies. This reduces the operational risks of the elimination of products from foreign companies and also increases the returns of foreign companies. However, this is a loss for domestic companies. This loss includes two aspects:

First, you can foresee or estimate the loss.

The introduction of foreign technologies and products that have been eliminated, and the introduction of production lines that have been eliminated abroad, have made these things, which originally have relatively small residual values, “appreciated” in varying degrees, and sold at a good price. Foreign companies can be complacent behind themselves and are happy to take stock of the "unexpected" gains. The overvaluation of these prices has made domestic companies bear a relatively heavy capital burden. And the more value that is overestimated, the greater the loss of diesel engine companies.

Second, unforeseen losses, which are potential losses.

With the further acceleration of China's international cooperation, mature foreign new technologies and new products will enter the domestic market in a large scale. At this time, the company's business risks will be released more quickly. First of all, to make the imported products face the blow of more powerful competitors, the product's living environment will be much worse than the company expected; Second, it will also speed up the elimination process of imported products, shorten the life cycle of imported products, and even will Lead to the premature death of imported products.

In this case, the benefits that the introduced technology and products can bring to the company will be reduced in any case, and it will not even be able to bring benefits to the company at all. However, the actual situation is that the company's resources have already been invested. At that time, if the company wants to withdraw its investment, it can only be whimsical.



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