For the automotive industry, the engine is undoubtedly the most important area, and it is also one of the most lacking capabilities of China's domestic automobile manufacturers. In recent years, with the rapid development of the domestic auto market and the maturing of domestic auto manufacturing technology, the engine has become an important area for major joint ventures and independent brand competition. It should be noted that the competition on engine manufacturing capacity is not self-promotion at all in the enterprise, and it really marks the level reached by a depot in terms of technical level, especially the ability of subsequent product development. At the same time, the autonomous production of the engine also means that its output has reached economic volume, adding weight to the price competitiveness of its products.

From joint ventures to autonomous hot topics

Self-made engines have now become hot topics from joint-venture brands to their own brands. There are many domestic hot-spot brands such as hot-spot brands.

One of the latest examples is that Changan Ford Mazda has officially broke ground for its new engine plant in Chongqing. The new engine plant, with a total investment of US$500 million, is located in the northern part of Chongqing and will be put into operation in 2013. The new plant has the world's most advanced engine production line with a designed annual production capacity of 400,000 units. Upon completion, it will increase the annual production of Changan Ford Mazda's engine from 350,000 units to 750,000 units. In addition, BAIC and Germany's Daimler Group also started construction of the engine plant. The new engine plant will begin manufacturing 4-cylinder gasoline engines in 2013 for the local production of Mercedes-Benz cars and light vehicles. The engine plant's maximum annual designed production capacity will reach 250,000 units, of which the highest initial annual production capacity can reach 100,000 units. After that, the production capacity can be further increased according to the demand for sales growth. The above two cases show that whether it is a high-end car or a mid-range car, the joint venture company has already reached the point where it is necessary to consider the larger-scale production of the engine and a greater degree of localization.

The independent brands have never stopped their efforts to build their own engines. In 2010, Dongfeng Passenger Vehicle Engine Factory, which was designed to produce 300,000 units a year, started construction in Wuhan and has caused widespread concern in the industry. Great Wall Motor has built an engine professional team of nearly 400 people to build an engine production line with an annual production capacity of 100,000 units. Its planned annual production capacity will reach 300,000 vehicles. In addition, Dongan Power Co., Ltd., which is specialized in the manufacture of engines and sold to domestic automakers, has also been planning to expand its production capacity. From another point of view, it also reflects the strong demand for domestic auto engines for import substitution.

The reason why it has become a common hot spot in the industry is, of course, the continuous increase in domestic vehicle production, which has increased the demand for engines and created the best opportunity for investing in engine manufacturing.

Significant increase in the level of manufacturing technology

Self-made engines have originally belonged to relatively high-tech fields. The construction of a large number of engine manufacturing plants certainly means improvement of technology for enterprises and the entire industry, and the ultimate purpose of upgrading technologies is also very clear, increasing the competitiveness of products while It is also possible to reduce manufacturing costs.

This can also be clearly seen from the basic pattern of the current domestic auto market. Over the past few years, after experiencing the increasingly powerful impact of Japanese cars, Shanghai GM, SAIC and FAW-Volkswagen have consistently ranked in the forefront of domestic automobile manufacturing and sales, and these three families have relatively strong independent engine manufacturing capabilities. The former even uses minivans with its own engine, and constantly optimizes and upgrades its own engine according to the needs of the market, and has always maintained a relatively strong competitiveness. The latter is the introduction of German Volkswagen's latest injection technology into the domestic manufacturing, with the dual clutch transmission, formed its own technical advantages in the country. At the same time, it also makes its own product prices more competitive. Although German counterparts such as Daimler have also begun to increase their technical input, including engines, in recent years, the great advantage of first-in-class still makes Audi, including its high-end brand, greatly benefit.

From the perspective of future development, the improvement of engine manufacturing capacity not only allows the product's cost of sales to be reduced to a certain extent, thereby directly enhancing its competitiveness. More importantly, around the engine and a series of related major systems such as gearboxes, chassis, transmissions, etc., those companies that have a certain level of technology can independently develop new vehicles based on the market demand, and are less subject to zero. Accessories restrictions. In this regard, Shanghai GM and Shanghai Volkswagen are the two most typical ones. Their respective main products seem to be relatively old, and their internal counterparts have made many improvements to the Chinese market, making the products less expensive. It is easier for the market to accept. This is also the plan of other colleagues to invest in the engine factory behind the plan.

For independent brands, the situation is even more so. Focusing on the core technology of the engine, they are more likely to introduce new products and are more likely to control costs. It is believed that competition in this area will become more and more apparent in the future.

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