Less than a year after the original plan was postponed, Jianghuai Navistar, a joint venture company of JAC in the engine field, finally put into operation at the end of September this year. According to information released by JAC, the total investment of Jianghuai Navistar's production base is 1.8 billion. Yuan Renmin, the first phase of the project has a designed annual production capacity of 100,000 engines, and a total of three phases of project design will reach an annual production capacity of 200,000 vehicles.
Unlike general joint ventures that only produce products of foreign brands, JAC Navistar will put into production engines of two brands, JAC and MAXXFORCE , both Chinese and foreign shareholders. In addition to the previously planned light commercial vehicle engines, JAC Navistar will also introduce Navistar large-displacement diesel engines ranging from 9.3L to 13L in the future, becoming a full-power diesel engine manufacturer covering 2.7 to 13L displacement. . As a result, JAC has become the second commercial vehicle company to establish a complete vertical supporting system after Foton Motor this year.
The production of Jianghuai Navistar means that Jianghuai will be highly dependent on the engine for external control. The total sales volume of JAC commercial vehicles reached 258,000 vehicles, but less than 30% of the engine's self-provisioning ratio has greatly affected JAC's profits.
After JAC Navistar is put into operation, JAC will gradually achieve self-support in all displacements. "In the next five years, we hope to achieve an engine self-provision rate of 70%." Yang Qingrong, deputy general manager of Jianghuai Nashishida Diesel Engine Co., Ltd., said in an interview. This five-year plan will undoubtedly impact the existing engine suppliers in Jianghuai.
Want to break the profit promotion problem
For a long time, the engines of JAC's light commercial vehicles and heavy trucks mainly depended on the high mining rate of the external mining engine and the core components of the engine, which has caused JAC's profit growth to be hampered. In the past three years, the operating profit of Jianghuai Automobile has been below 3%, which is much lower than the average level of the national auto industry.
Although JAC's performance has gradually improved since 2013, profit margins have been declining. In the first half of this year, Jianghuai achieved an operating income of 18.105 billion yuan, a year-on-year increase of 0.67%, but the net profit attributable to shareholders of listed companies was 460 million yuan, a year-on-year decrease of 11.58%, and operating profit decreased by 32.82% year-on-year.
Currently, Jianghuai’s profits mainly come from the commercial vehicle segment. Due to the obstruction in the passenger car market, Jianghuai announced last year that it would return to commercial vehicles in development and maintain the status quo in passenger cars, and no longer invest in it, focusing on the development of commercial vehicle business.
In the commercial vehicle business, JAC's main advantage lies in the light truck segment, which is also the core segment of JAC's future development. It is in the light of long-term development that Jianghuai signed an agreement with Navistar in 2012 to establish a joint venture engine plant to eliminate the high dependence on the engine as a key component.
According to the agreement at the time, Navistar entered a light engine with a light-duty truck for the Jianghuai Navistar. In JAC's mid-term strategic adjustment in 2013, the company stated that it will use Navistar to strengthen its light truck business. "Till the end of the 12th Five-Year Plan period, the overall gross profit margin of light commercial vehicles will reach 20%. With the cooperation and cooperation with Navistar, we will master the core technologies and form a clear competitive advantage."
However, until now, JAC light trucks have still not escaped foreign dependence. The engine part is provided by an independent engine plant such as Weichai, and a small part uses its own engine. However, in the heavy-duty card business that requires breakthrough, JAC has no corresponding engine products.
Heavy engine market reshuffle
With the launch of JAC Navistar, and the subsequent increase in the engine self-provisioning rate of five years to double the target proposed, JAC's engine suppliers will inevitably be affected, the first is WeiChai.
In addition to the engine with a light truck, high-level Jianghuai Navistar has clearly stated that it will introduce heavy-duty engines. These engines must not only be supported by JAC but also compete with independent engine plants. "In the next five years, we hope to occupy at least 10% of the commercial vehicle market. According to the current market capacity, the final annual sales volume should be between 200,000 and 300,000 units," said Yang Qingrong. In addition, Jianghuai also plans to export 50,000 diesel engines each year.
In order to open the market as soon as possible, Jianghuai Navistar plans to use the terminal distribution network of JAC commercial vehicles to further cover its own service network, and will establish spare parts service centers in 31 cities and regions in the country.
In recent years, with the acceleration of competition in the commercial vehicle market, self-built engine plants seeking vertical support have become an important way for production companies to integrate upstream and downstream resources in the industrial chain, reduce costs, and reduce reliance on external engine manufacturers. Several major commercial vehicle manufacturers, including Dongfeng, FAW, and Futian, have successively established vertical supporting engine companies through joint ventures or self-construction. "If an auto plant does not have its own engine and transmission products, it will be difficult to strengthen the company," said industry analysts. However, for JAC, a potential danger is that in 2013, JAC's heavy-duty truck sales were only 29,000 vehicles. According to industry estimates, if the sales scale cannot reach 100,000, self-built engine plants will have scale risks.
What needs to be vigilant is that the annual production capacity of heavy-duty engines has reached 2 million units as early as in 2010, while the sales volume of domestic heavy trucks was only 774,000 units last year, and this year it is expected that the sales volume will also be around 700,000, and the overall surplus has already appeared.
The market structure will not change much in the meantime, because the new engine joint venture projects generally require an adaptation period of 3 to 5 years in terms of cost and localization, and the time for market changes has not yet arrived.Boride Powder,Nickel Boride Powder,Chromium Boride Powder,Thermal Spray Materails
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