China Commercial Vehicle Exhaust Emission System Industry Report, 2015
Since 2014, the output and sales volume of commercial vehicles in China have continued to decline, with the output and sales volume for Jan.-Jul. 2015 totaling 1.9837 million units and 1.9891 million units, respectively, down 14.62% and 13.89% year-on-year. That was mainly because economic downturn led to a fall in demand for commercial vehicles. On the other hand, the emission standards for diesel vehicles are so unprecedentedly strict that the industry is contracting to achieve industrial upgrading.
At present, China's mainstream line for National IV emission standard has been identified as follows: Heavy and medium-duty commercial vehicles adopt SCR system while light-duty commercial vehicles use EGR+DOC/POC system.
From the perspective of the development of SCR industry, China’s SCR industry is in the early stage of growth. Although there are much more newcomers, yet the number of excellent enterprises is still small. The autonomous enterprises include Weifu Lida, Kailong High Technology, and ZHEJIANG YINLUN MACHINERY, and the foreign-funded enterprises mainly involve Commins and TENNECO.
Among them, Weifu Lida boasts prominent SCR technical capacity. In the whole industry chain, all core parts are produced independently except carrier that is outsourced from outside. In H1 2015, the company recorded revenue of RMB1.326 billion and net income of RMB141 million, up 53.71% and 60.93%, respectively, on a year-on-year basis.
ZHEJIANG YINLUN MACHINERY specializes SCR system assembly and catalytic converters that are applicable to heavy and medium-duty diesel-powered vehicles. As one of the major SCR converter suppliers of Weichai, the company has advantages in the field of packaging. In H1 2015, the company reported revenue of RMB1.421 billion, up 18.31% year-on-year; net income of RMB104 million, up 27.79% year-on-year.
The autonomous EGR manufactures in China primarily include ZHEJIANG YINLUN MACHINERY, WUXI LONGSHENG TECHNOLOGY, and YIBIN TIANRUIDA AUTO PARTS while foreign-funded enterprises consist of Kunshan Pierburg, Ningbo BORGWARNER. Among them, WUXI LONGSHENG and YIBIN TIANRUIDA specialize in EGR valve and EGR system; ZHEJIANG YINLUN principally operates EGR cooler, which registers an around 9% market share in China. In the field of light-duty trucks, YINLUN occupies nearly a 50% share of total EGR cooler market, and thus its capacity for market penetration is increasing year by year.
The report mainly deals with the following:
Development background, industry standards and policies, as well as technology roadmap of commercial vehicle exhaust emission system industry; Development of SCR system and EGR system industries, including their system structure, market pattern, market size, and main supported vehicle manufacturers; Development of downstream market, including commercial vehicle production and sales, bus and truck production and sales, as well as the prediction of production and sales volume for 2015-2018; 10 major SCR system manufacturers, 5 EGR system manufacturers, and 5 POC/DOC catalyst manufacturers in China, including their operation, related product business, latest developments, development in China (mainly foreign enterprises), and relevant product supporting manufacturers, etc.