2015 Yuchai started the upgrade battle

In 2014, Yuchai delivered a good transcript: sales of various types of engines totaled 484,000 units, sales increased by 3% year-on-year, and market share increased by 1.4 percentage points. Although sales volume fell slightly compared to the same period of last year, sales Both the amount and the market share increased, and the production and sales volume continued to rank first in the industry, indicating that Yuchai achieved a quality development in 2014. The qualitative increase is more important than the increase in volume.

2014: Growth has quality and market highlights

In 2014, Yuchai Co., Ltd. achieved remarkable results in improving the comprehensive competitiveness of its enterprises through internal efforts. On January 24, 2015, at the Yuchai Machinery 2015 marketing service conference, Wu Qiwei, general manager of Yuchai shares, said that in 2014 Yuchai’s total sales declined slightly, but The sales of gas power and overseas markets are increasing, the passenger car power has been comprehensively passed through the country, and the fourth national power of trucks has been gradually introduced and rapidly increased. This has achieved an overall increase in the sales revenue of all business segments. The market share has steadily increased and the comprehensive competitiveness of enterprises has further increased. Enhanced.

In 2014, around the "subdivision" and "National IV," Yuchai did a lot of work and vigorously adjusted the product structure, market structure and operating structure, and achieved initial success.

As we all know, Yuchai's medium-sized aircraft is strong, heavy-duty and light-weak; the passenger car market is strong and the truck market is weak. In 2014, Yuchai broke through the product segmentation and market segmentation in heavy- duty trucks and light trucks. Sales of more than 40,000 units, including traction cargo power increased significantly by 45%; 6MKN gas engines are used in highway heavy trucks, and the market has more than 15,000 units; through the use of electronic control technology, light truck 4FA power sales reached 20,000 units, a year-on-year increase. 100% increase.

For passenger cars, Yuchai further strengthened its leading position in the market. In 2014, Yuchai's passenger car power market share of 6 meters or more reached 65%, including passenger car gas power sales of 33,000 units and continued to lead the industry.

Yuchai also seized the opportunity to switch the emission standards. By giving full play to its technical and service advantages, the company has achieved a comprehensive transformation and coverage of the country's four powers, laying the foundation for the 2015 grab of the market. According to Wang Limin, deputy general manager of Yuchai, Yuchai Card and passenger car power have achieved full switch of the country. Among them, the proportion of orders for truck power in the fourth quarter of the country's fourth quarter has reached 70%, and the power of the passenger coach Guosi has reached 95%. In terms of services, Yuchai’s implementation of the service satisfaction project began to show significant results, and the special training for service stations and gas engines and other service technologies was successfully carried out, which improved the maintenance and repair capabilities of service systems. Currently, Yuchai’s mature state-of-the-art electronic service stations are online. Run up to 1542 homes.

Yuchai Engine
Yuchai Engine

In terms of external market highlights and improvements in internal management, Yuchai has also made some progress. In 2014, Yuchai achieved remarkable results in quality, cost, and delivery (QCD) lean improvement, and the QCD level increased significantly. This also contributed to Yuchai’s outstanding performance and customer satisfaction in various market segments in 2014.

2015: Twenty-five off and ten fights

Although there were a lot of bright spots in 2014, Yuchai was very cautious when setting sales targets for 2015.

In general, companies set targets higher than in previous years. First, morale and pressure are exerted. Therefore, in the 2015 business conferences of major OEMs, sales targets have been set higher than in 2014. Yuchai has proposed In 2015, it secured 485,000 units and strived for 520,000 units.

This is due to the unfavorable judgment of the market environment in 2015. Under the new normal, there is still downward pressure on the economic growth rate, the market may continue to be low and the demand is generally weak. In particular, the national fourth national emission standards will be enforced nationwide in 2015. Affected by rising costs, the truck market will show a decline in demand. , the trend of the year before the low rise. Based on the above judgment, Yuchai has set a goal that is consistent with 2014.

This goal seems to be conservative. In fact, Yuchai proposed the requirement for further increase in market share in 2015. This is even more critical. On the one hand, market demand is weak, competition is becoming more intense, and the external situation is hardly optimistic. On the other hand, supporting in the heavy-duty truck business system has become the norm. Project dumping restrictions are unlikely to increase. Highway passenger cars will continue to decline due to high-speed rail, and school bus policies will follow. Weaknesses, etc. At the same time, competitors in the traditional advantage fields are eyeing and foreign brands have entered. These will be the challenges Yuchai will face in 2015.

"Upgrading the customs" is a countermeasure proposed by Yuchai. The first is the upgrade. Zhong Yuwei, deputy general manager of Yuchai, told the reporter that 2015 is a very critical year for Yuchai’s transformation and upgrading. Yuchai must turn to intensional growth, achieve breakthroughs in quality and cost, and upgrade services.

The second is Shaoguan. “Yuchai has to fight five levels and fight ten games.” Wu Qiwei said that Yuchai needs to use emission regulations to upgrade and continue to optimize product structure, market structure, and business structure, and fully break the five barriers, that is, non-road T3 clearance. , trucks four customs, gas five countries, quality improvement and cost control.

Specific to the project, Yuchai has to “take 10 battles that must be won,” namely, truck market specialization, gas power market specialization, large ship power market specialization, Tongji market specialization, marketing service improvement specialization, and research and development core technology. Specialization in product upgrading, product quality improvement, and lean manufacturing continue to promote special projects.

Therefore, product segmentation and market segmentation are still important measures for Yuchai in 2015. Such as truck power and gas power, through further subdivision, to provide leading and applicable products, thus breaking the heavy truck, light truck four markets; complete gas power spectrum, to achieve full coverage from 3 to 13 liters, to create a comprehensive gas-powered vehicle Leading market position.

Reengineering internal systems and accelerating internationalization

There are challenges and greater opportunities.

State IV is undoubtedly the biggest opportunity for Yuchai, especially during the strict environmental management period in 2015. The implementation of State IV and the National 3 are not the same. Yuchai, adhering to the concept of “green power and harmonious development”, has been at the forefront of the industry in product emission upgrades. The new product launch conference held during the conference, Yuchai released six new types of commercial vehicle power to reach the national fourth, Five or even European six emission standards. This includes new products and variants of the original platform. It is worth noting that these products are not just listed, but they can be put directly on the market, including the YC6L-60 engines that have reached Euro VI emissions, and have been put into batches in Beijing. It is enough to prove Yuchai's product development capabilities and quality assurance capabilities.

This is due to the lean manufacturing system Yuchai has implemented since 2011. After three years of hard work, Yuchai’s commercial power, manufacturing power, system power, and marketing power have been significantly improved, and the company’s core competitiveness has been enhanced.

However, there is still room for improvement in this area, which requires further improvement and optimization of the lean system. The goal of Yuchai is to initially establish the YCPS Lean Manufacturing System YCPS in 2015 by initially advancing lean manufacturing, lean supply chain, lean R&D, and lean investment.

In addition, Yuchai has also launched a three-year quality improvement plan and strives to eliminate early product failures and zero-kilometer failures through three years of efforts, significantly increase the product's B10 lifespan, and enable product quality to reach the same level in Europe.

Do not underestimate these basic tasks. This is to lay a solid foundation for the realization of Yuchai's vision for the 2015-2018 five-year strategic plan: to build the world's most competitive professional power supplier. This covers the competitiveness of quality, cost, R&D delivery, production delivery, core technology, and marketing services.

In addition, the pursuit of foreign cooperation is an important task for Yuchai in 2015. According to reports, this year, Yuchai has made substantial breakthroughs in strategic cooperation with a number of internationally-renowned companies. A number of major cooperation projects will be completed. By then, Yuchai’s international operation capabilities will be significantly enhanced. "Through cooperation with leading engine plants and OEMs in the world, we have achieved product export, enhanced Yuchai's popularity and market space, and can learn from others' management experience to improve product quality." Zhong Yuwei told reporters.

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