The internal combustion engine industry may have new opportunities in 2016

In the past year, the internal combustion engine industry has been experiencing minor fluctuations. Throughout the year, despite the overall economic downturn, the industry has maintained a relatively healthy development despite slight declines. The internal combustion engine industry in 2016 Or something to pick up. In particular, the introduction of the “Thirteenth Five-Year Plan” has brought more direction to the development of the internal combustion engine industry.

The internal combustion engine industry may have new opportunities in 2016
The internal combustion engine industry may have new opportunities in 2016

Decline in revenue

According to the statistics report of the main economic indicators of 644 large-scale enterprises in the national internal combustion engine industry of the National Bureau of Statistics in December 2015, the total assets, current assets, accounts receivable, inventory, finished products, and liabilities increased from January to December 2015. The remaining major financial indicators have declined in varying degrees. Details are as follows:

The main business revenue decreased slightly. From January to December of 2015, the total volume of main business of the national internal combustion engine industry reached 229.174 billion yuan, a year-on-year decrease of 3.31%, a decrease of 7.853 billion yuan. From the main business income of different holding companies in large-scale enterprises in the internal combustion engine industry in the country, from January to December 2015, the main business income of collectively-controlled enterprises and privately-owned enterprises was higher than that of the same period in 2014, which was an increase of 1.16% and 7.04% respectively; The income from main operations of holding enterprises, Hong Kong, Macao and Taiwan business holdings, foreign-invested companies, and other holding companies was lower than that of the same period of 2014, which was a decrease of 17.98%, 22.41%, 8.54%, and 4.04% year-on-year respectively. Total profit dropped sharply. From January to December of 2015, the total profits of the above-scale enterprises in the internal combustion engine industry totaled 17.485 billion yuan, a year-on-year decrease of 9.54% and a decrease of 1.844 billion yuan.

From the profit realized by different holding companies of large-scale enterprises in the internal combustion engine industry in the country, from January to December 2015, the total profit of privately-held and other holding companies was higher than that of the same period of 2014, which was an increase of 5.46% and 35.91% year-on-year; the state-owned holding companies and collectives The total profit of the holding company, Hong Kong, Macao and Taiwan business holding companies, and foreign-controlled enterprises was lower than that of the same period in 2014, which was a year-on-year decrease of 33.49%, 7.79%, 13.88%, and 3.21%, respectively. Accounts receivable accounted for a slight increase in funds. As of the end of December 2015, accounts receivable from enterprises above designated size in the internal combustion engine industry in the country totaled RMB 32.20 billion, an increase of 9.50% year-on-year and an increase of RMB 2.794 billion in funds. Inventory occupied funds increased slightly. At the end of December 2015, the inventory capital of enterprises above designated size in the internal combustion engine industry in the country was 29.963 billion yuan, an increase of 3.12% year-on-year. Receivables and inventories are still growing. It can be seen that the pressure on destocking in the internal combustion engine market is still severe, and the problem of overcapacity is still in urgent need of solution.

According to the statistics of the China Internal Combustion Engine Industry Association, the total export value of the internal combustion engine industry in December 2015 was 1.295 billion U.S. dollars, down 7.63% year-on-year; the cumulative annual export value was 14.084 billion U.S. dollars, down 3.70% year-on-year. In December, the total amount of imports of the internal combustion engine industry was 929 million U.S. dollars, a year-on-year decrease of 9.49%; the cumulative annual import value was 9.899 billion U.S. dollars, a year-on-year decrease of 18.19%. The drop in both import and export shows that the domestic and foreign market demand is not very strong, which has aggravated the pressure on the industry's enterprise inventory, and the expansion of demand to stimulate market vitality is the top priority of the industry.

Clear planning

A few days ago, the "13th Five-Year Plan for the Development of China's Internal Combustion Engine Industry" was drafted by the China Internal Combustion Engine Industry Association. According to the "Plan", the "13th Five-Year Plan" is the first step for the internal combustion engine to become a strong country; at the same time, the "13th Five-Year Plan" industry will insist on innovation-driven, establish "leader" incentive mechanism, and improve the overall competitiveness of the industry .

It is reported that the internal combustion engine consumes two-thirds of the global oil resources and is the main source of atmospheric pollution and greenhouse gas carbon dioxide. For this reason, the "planning" (draft for soliciting opinions) mentioned that "internal combustion engines are the products with the greatest potential and the most direct and obvious effect in energy conservation and emission reduction at present and in the future. They have not been shaken for a long time as a mainstream power machine. The overall goal of China's CO2 emissions in 2030 will reach its peak goal as soon as possible, and the task of energy-saving and emission reduction in the internal combustion engine industry is arduous and the responsibility is significant."

According to the China Internal Combustion Engine Industry Association, “In order to comply with the advocacy of an environmentally friendly society, we must accelerate the realization of advanced internal combustion engine manufacturing, comprehensively consider the environmental impact and efficiency of resource use, comprehensively improve the level of clean and efficient processing technology, promote intelligent production, and achieve green production. Promote the use of special lubricants for alternative-fuel internal combustion engines and unconventional post-disposal technologies to develop new alternative fuel combustion technologies. Deepening alternative fuel engines is compatible with existing engine manufacturing systems. For a long time, China's internal combustion engine industry has been manufacturing and testing. Testing and other test technologies and test equipment rely on foreign phenomena is very serious, the vast majority of key test equipment and instruments need to be imported to resolve, seriously hinder the improvement of independent innovation capabilities and the development of new products.

The "plan" (draft for comment) clearly states that the "13th Five-Year Plan" industry must be fully upgraded. Continue to consolidate the status of large-scale manufacturing enterprises of internal combustion engines, realize intelligent production and manufacturing, promote information technology in the industry, and shorten the gap between international advanced level in the application of core technologies, key basic components, advanced manufacturing processes and new materials, effectively improve product quality and Production consistency, and thus taking the first step in the development of China's internal combustion engine industry long-term strategy.

At the same time, the “Thirteenth Five-Year Plan” in the entire industry persists in innovation-driven, establishes a “leader” incentive mechanism, accelerates adjustment of industrial structure, establishes a batch of advantageous enterprises, and improves the overall competitiveness of the industry. Promote the industry to achieve product quality improvement, promote enterprises to open up the international market, and strive to build China into an engine manufacturing powerhouse by 2030. Master core manufacturing technologies and key process technologies, build 3 to 5 common basic technology platforms, and promote the research and development of advanced technologies for energy-saving and emission reduction of internal combustion engines and the transformation of scientific and technological achievements. Full implementation of intelligent transformation, complete the construction of green manufacturing system.

Development highlights

The two documents issued by the State Council on “Made in China 2025” and “Opinions of the State Council on Strengthening the Energy-Saving and Emission Reduction of the Internal Combustion Engine Industry” have proposed a clear development strategy and target requirements for the energy-saving and emission reduction of China’s internal combustion engine industry. The experts of China Combustion Engine Industry Association summarized the following five highlights of the analysis of the development of Chinese internal combustion engines under the “Thirteenth Five-Year Plan”.

Highlight 1: Emphasis on innovation and technology.

Under the “Thirteenth Five-Year Plan”, the development of internal combustion engines should be guided by the market, aim at energy conservation and emission reduction, persist in innovation-driven, accelerate industrial restructuring, and increase the overall competitiveness of the industry. Xing Min, Vice Chairman and Secretary-General of the China Internal Combustion Engine Industry Association, stated that "In the next five years, the internal combustion engine industry will use a combination of government, production, research and development to master key manufacturing technologies and key processes to advance the advanced energy-saving and emission reduction of internal combustion engines. Technological R&D and transformation of scientific and technological achievements.The industrial structure should also be tilted toward technology, and establish a long-term mechanism to support the technological transformation of enterprises.For internal combustion engine companies, it is necessary to strengthen the construction of quality brands, and constantly improve self-research and development capabilities to form independent intellectual property rights. China's brand-building products."

Highlight two: promote green production.

Higher and higher emission standards not only impose new environmental protection requirements for vehicle manufacturers but also for the production of internal combustion engines. As a source of power for vehicles, green manufacturing of internal combustion engines has become a top priority. In response, Li Dongru, deputy secretary-general of the China Federation of Machinery Industry, said, “The future development should focus on green design technologies, cleaner production technologies, resource recycling technologies, and energy-saving emission reduction and noise reduction technologies. Green manufacturing is a technological innovation. Driven by the introduction of the concept of 'resource efficiency', which achieves the highest value-added output with minimal resource input, it has achieved a better integration of 'green' and 'profit' and is also in line with business needs. In the industry, we promote the use of special lubricants for alternative fuel internal combustion engines and unconventional post-treatment technologies to develop new alternative fuel combustion technologies. Deepening alternative fuel engine compatibility with existing engine manufacturing systems."

Highlight three: Pay attention to remanufacturing.

The redevelopment of industrial products has a short history of development in China, and the scale of remanufactured companies is not very large. However, the remanufacturing of internal combustion engines has started relatively early. At present, companies have begun to take shape. In response, Ge Hong, the deputy secretary-general of the China Internal Combustion Engine Industry Association, stated that “it should be guided by the scientific concept of development, and in accordance with the social requirements for building 'two types', comprehensively play the role of government guidance, association leadership, and enterprise promotion. Through the implementation of internal combustion engine remanufacturing The key projects will improve the level and industrialization capability of the internal combustion engine remanufacturing technology and equipment, accelerate the scale, standardization, and marketization of the internal combustion engine in the manufacturing industry, increase the market share of the internal combustion engine in the manufacturing industry, and improve the remanufacturing level and international competitiveness of the internal combustion engine industry. Promote the healthy and sustainable development of the industry."

Highlight 4: Strengthen industry supervision.

Regarding the relevant measures for internal combustion engines, the government first organized and implemented the "China's Internal Combustion Engine Industry Specifications" in a comprehensive manner, strictly controlled energy conservation, environmental protection, quality and safety, promoted the technical level of the internal combustion engine industry, and curbed backward production capacity expansion. Later, they introduced and organized the "Management Measures for Fuel Consumption of Internal Combustion Engine Products", aiming at improving the thermal efficiency of internal combustion engine products and reducing carbon dioxide emissions, and encouraging and guiding manufacturers to accelerate the promotion and application of internal combustion engine energy-saving emission reduction technologies and new products. Xing Min said that in the future, it will launch national science and technology plans (special projects, funds, etc.) and related engineering channels, and increase investment in research and development of energy-saving emission reduction technologies for internal combustion engines. Promote the construction of innovation systems for government, industry, and research. And establish the internal combustion engine industry communication, coordination and service mechanism, improve the standard system, and strengthen industry self-discipline and supervision and management.

Highlight 5: Promote international development. Today, with the rapid development of economic globalization, the internal combustion engine industry cannot be closed behind closed doors. It is an earlier time for the European and American countries to carry out the industrial revolution and has a leading position in machine manufacturing. In this regard, Xing Min said, "An active open strategy should be implemented. Combine the introduction with the outside world, promote the international distribution of internal combustion engine companies, and expand new areas and spaces for development. In addition, we should also improve the construction of a networked service system. With Internet management as a means to establish a reasonable, rapid and efficient service network, and promote the in-depth application of enterprise information in the service system.

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