Analysis of Development of Piston and Gear Industry in China

Pistons are the "heart" of a car engine, withstand alternating mechanical and thermal loads, and are one of the most critical components in the engine. The function of the piston is to withstand the gas pressure and to the connecting rod through the piston pin to drive the crankshaft to rotate. The top of the piston is also part of the combustion chamber. The planetary gear on the car is mainly used in two places, one drive axle reducer, the second is the automatic transmission. Since there are planet carriers, that is, there are three rotating shafts that allow power in / out, a clutch or brake can be used to limit the rotation of one of the shafts when needed and the remaining two shafts to drive, In this way, the gear meshing with each other can form a different gear ratio. Current industry focus, I will bring the piston and gear industry, the latest inspection tour of the city, to share with you. (I) Piston industry Driven by the overall automobile market, the engine piston market in China also witnessed rapid growth. In the first quarter of this year, the total production and sales volume of the engine piston market was about 18 million to 20 million, with an increase of more than 20% in production and sales. Although the piston production and marketing growth continued to decline, but due to increased cost pressures, intensified market competition, the industry further reduce the profit margins. Specifically, the main engine market is divided according to the type of fuel, of which 3,152,910 are for the production of diesel engine pistons for automobiles (calculated on an average of 6 cylinders), and 2,971,476 for the sales of diesel engine pistons for automobiles (on average 6 cylinders); the production of gasoline engine pistons (Calculated on an average of 5 cylinders) 7161125 only, sales of automotive gasoline engine pistons (calculated on average 5 cylinder) 7131970 only. Therefore, in the first quarter of the host market, engine pistons produce and sell about 11 million to 12 million. In addition, the maintenance market in accordance with the host market 0.6: 1 ratio calculated in the first quarter of 2007 for the maintenance of the market car engine piston about 6.6 million to 7.2 million or so. At present, the entire piston market in our country presents the following characteristics. High-end diesel engine piston production and sales increased significantly in the first quarter heavy, medium-sized truck rapid growth in production and sales, an increase of 72.69% and 30.87% respectively. Affected by this, in the high-end diesel engine piston market sales greater than the production, demand situation. Such as Hunan Jiangbin Machinery (Group) Co., Ltd. is a production and operation of high and mid-range diesel engine piston, gear, oil pump specialized enterprises. Due to the rapid growth of OEMs such as Yuchai and Weichai, the major economic indicators of the Company in the first quarter all set a record high. From January to March, the industrial output value increased by 26% over the same period of last year, sales revenue increased by 13.8% over the same period of last year, production piston increased by 17%, sales piston increased 3% and profit increased by 57.7%. Many businesses are more or less similar. Cost pressure surge profit continued to dilute the sharp rise in prices of raw materials. This year, prices of major non-ferrous metals and precious metals continue to stay high due to the high prices. In particular, the price of nickel rose and then rose, setting a new high for more than 10 years. The face of soaring prices of raw materials, the industry's larger enterprises also felt a little "powerless." According to experts, in 2007 non-ferrous metal prices will remain high, which is undoubtedly the Pistons and the entire industry, "a big hit." Second, product upgrades and structural adjustments lead to increased costs. With the gradual approximation of the implementation date of national 3 and 4 national standards in the whole country, the requirements for the safety, environmental protection and energy saving of the piston products by the host are getting higher and higher, resulting in the product upgrading and structural adjustment of Piston Enterprises. This undoubtedly fundamentally increases Piston technological transformation and product R & D investment, resulting in increased costs. Third, "hamburger effect" further highlights. All along, piston companies and many auto parts companies, like one by one "hamburger", suffered multi-party "squeeze" suffer. From the external point of view, on the one hand by some OEMs and dealers, "high pressure" pain. Some OEMs and distributors, in order to meet their own competition needs, will directly lower the cost of pressure on the supporting auto parts companies, regardless of whether the acceptance of supporting businesses, each year unconditional request to reduce the sales price of piston products. On the other hand is subject to fierce competition in the industry. Competition between enterprises has intensified as international multinational giants compete on the same stage with our major domestic piston enterprises. Pistons in order to compete for market share, lower prices and engage in homogenization of competition, and use the advantages of scale play "price war." From the internal point of view, on the one hand due to the sharp price increases of raw materials, the major raw materials procurement expenditures of various piston enterprises subsequently rose sharply, like a "bloody mouth" that would have swallowed up the already meager profits. On the other hand, product upgrades and structural adjustments lead to increased costs. Therefore, energy prices, labor costs and other aspects of increased spending, leading to financial constraints, further dilution of profits. Production and sales are expected to increase in the second quarter, according to the market for automotive engines, I predict that the second quarter of the automotive engine piston market will continue to show an overall trend of growth, total production and sales of 22 million or so, an increase of about 22%. Due to the national implementation of the national standard date approaching and the state on the safety, environmental protection, energy saving and other requirements of higher and higher impact, the market demand for diesel engines is expected to show a larger growth momentum in the second quarter of the growth rate of the diesel engine piston market May reach about 25%. Therefore, for the host market diesel engine piston production and sales increase in about 800000, reaching 4000000 or so. Coupled with the diesel piston repair market sales of about 3000000 or so, so the second quarter of the total production and sales of diesel engine piston market in 7000000 or so; gasoline engine piston market will continue to grow for the host market gasoline engine piston production and sales of 8.6 million Only around, together with the petrol engine piston repair market production and sales of 6.2 million or so, so the second quarter gasoline engine piston market total production and sales of 15 million. (II) Gear Industry With the rapid development of China's manufacturing industry, especially the automobile industry, the annual output value of China's gear industry has exceeded 70 billion yuan, and the demand for gear, engineering gear and industrial gear will also increase significantly. In recent years, the production and sales of the gear industry have increased by more than 20% each year. The whole industry now has more than 600 manufacturers, including more than 100 key enterprises with annual sales of 25 billion yuan and exports of 400 million U.S. dollars. Gear transmission is divided into two major categories of vehicle gearbox and industrial gearbox. Including vehicle gearbox with annual sales of 15 billion yuan, exports 240 million US dollars; industrial gearbox with annual sales of 10 billion yuan, exports 160 million US dollars. In terms of the number of factories and the number of personnel, China is a big country in gear manufacturing, but it can not be called a manufacturing power. Although some of the technical and physical quality of products is close to or reached the international advanced level, but most also fail to reach the international second-tier level. Faced with the influx of foreign capital and changes in the competitive strategies of multinational corporations, such as the change of sole proprietorship, joint stock change, mergers and acquisitions, mergers and acquisitions intensified, the gear industry crisis mainly reflected the low innovation capability, the dependence on key equipment for imports and the low level of digitization , Quality control is not strong, independent development capability is not strong, there is still the risk of multinational corporations in the industry. In the automobile industry and equipment manufacturing industry, gears have formed a basic viewpoint in terms of independent innovation. In a word, they generalize the standard with innovation and lead the market with standards. The core competitiveness of enterprises is mainly reflected in the independent intellectual property rights, in order to have independent intellectual property rights, we must go ahead in innovation; companies to create the world's brand-name products, you need to win the leading industry standards. To carry out joint research on basic technology research, organization of universities and research institutes on basic standards, design methods and testing methods; actively carry out joint innovation such as organizing research and industrialization of automatic transmission, industrial gearbox design, Gear grinding equipment development. Multinationals of foreign parts and components influx into China, the gear industry in the face of international competition on the one hand through independent innovation to improve core competitiveness. On the other hand, we should not allow industry resources to be handed over to other people for safeguarding the rights and interests of the industry, the rights and interests of enterprises and autonomous trade. The joint venture and sole proprietorship of the gear industry should be controlled and controlled to prevent the national industry from being marginalized. The import and export of gear products should strive to be orderly but not disorderly and prevent the competition of low-cost and low-cost imports and exports without restrictions. Further standardize competition in the domestic market, establish a mechanism for the exchange of information, peer coordination mechanisms, common counterpart mechanisms and quality assurance mechanisms to prevent vicious competition. To promote the industry with international standards, to help domestic enterprises go global. This year, the gear industry has two categories of products included in the 2007 China brand-name product evaluation directory, the industry's annual sales of 100 million yuan in more than 50 companies, emerged "Fast," "SAIC forward" , "South Tooth", "Heavy Tooth", "Thai Star", "Stallone", "Tooth", "Big Tooth", "Aoyama", "East Force", "Shuanghuan" and other famous brands. Among them, "Little Giant" enterprise Shaanxi Fast Gear Co., Ltd. achieved a sales revenue of 2.8 billion yuan in 2006, and the output of heavy-duty gearboxes ranked the first in the world. Entrepreneurs, experts, technicians, these three types of people constitute the "iron triangle" of the three groups in the West is the lifeblood of enterprises. Industries, companies should be commended and rewarded for these individuals, the purpose is to improve the level of technology industry, to create a unique technology companies know-how. Only in this way can we make our own innovative patents and products with international advanced level enter the market. However, we also noticed that the gearbox of the vehicle that represents 60% of the sales volume of the whole industry on behalf of the industry as a whole has not been included in the evaluation catalog. In fact, China's production and sales of vehicles has become the world's forefront, if not an important gearbox gear without a Chinese brand name, and the status quo is not in full swing. In addition, the pressure from the WTO also requires that China's brand strategy of transmission gearbox be started as soon as possible.