Emission standard upgrade accelerates Bosch's expansion of energy prices in response to competition


With the full implementation of the National III emission regulations and the imminent implementation date of the National IV emission regulations, the market for electronically controlled common rail systems that meet the potential of the National III, National IV and higher emission standards is rapidly increasing in the commercial diesel engine market in China. expand.

The Bosch Group recently announced that it will invest 200 million euros in the next three years to expand the capacity of the common rail system in Wuxi to occupy an expanding market.

Bosch currently has approximately 60% of the market share in China's high-pressure common rail system market. However, the common rail system not only faces competition from a few companies such as Delphi, Cummins, and Denso, but also faces competitions such as “electronically controlled inline pump + EGR (exhaust gas recirculation)”.

In addition to expanding production capacity, Bosch's 200 million Euro investment will continue to promote localization and develop new low cost common rail systems to further reduce selling prices. This will not only be able to cope with the competition of "low-cost technologies such as electronic control in-line pump + EGR", but also alleviate the doubts of domestic enterprises to Bosch "monopoly" common-rail system market and obtain high profits.

Expand production capacity

The diesel system is one of Bosch's priorities for investment. From 2008 to 2010, Bosch will increase investment in China by 850 million euros, and about one-fourth will be spent on diesel systems.

The output of diesel common rail systems at the Bosch Wuxi production base will increase from 100,000 units in 2007 to 1.4 million units in 2010. By the end of 2009, the number of employees in Wuxi will have doubled from 2008 to 3,900.

From January 2007 to September 2008, Bosch sold a total of approximately 440,000 common rail systems in the Chinese market. This scale is considerable.

The Chinese market is extremely important to Bosch. Bosch's sales in China in 2008 are expected to reach about 2.3 billion euros (about 25 billion yuan), which will maintain a 30% growth for four consecutive years. Currently, sales in Asia Pacific account for 1/6 of Bosch's global sales, and it is expected to reach 1/4 by 2015. Franz Ferenbach, chairman of the Bosch Group, said: "Without China's growth, we cannot achieve this goal."

At present, China's auto engine companies have not yet mastered the relevant technologies of high pressure common rail systems. Moreover, the speed of the emission standards upgrade is much faster than the speed at which companies can grasp related technologies. Therefore, the adoption of foreign advanced technologies becomes a realistic choice. At present, OEMs such as Huatai Automobile, Chery Automobile and Great Wall Motor have jointly developed diesel engines with Bosch. These engines have adopted the common rail system of Bosch.

Fehrenbach said that in the past few years, Bosch has been supporting high-end cars, but three years ago, low-priced cars in emerging markets including China have been greatly developed, so Bosch decided to enter the low-cost product market. At present, the engine control system specially developed for low-priced cars has been applied to the low-priced car Nano of India's Tata Motors.

Localization reduces prices

When deciding to expand 200 million euros in investment, Bosch Diesel Systems is facing competitive pressure from Delphi, Denso and local Chinese manufacturers. The electric high pressure common rail system production plant has started construction in 2007 and will be put into production in 2009. Cummins' high pressure common rail system has already started production in China. FAW also launched a self-developed High Pressure Common Rail III diesel engine. A few months ago, the electronically controlled combined pump system launched by Chengdu Wang's Witt Company also threatened Bosch's market position to some extent. Together, these factors have contributed to Bosch’s acceleration of localization in order to reduce product prices as quickly as possible.

At present, Bosch's high-pressure common rail system for heavy-duty trucks has been reduced in price by 20% compared with the beginning of 2007, and there is potential for further price reductions. Wuxi Weifu is Bosch's supplier of high-pressure common rail, and Bosch's high-pressure common rail system will help local companies in China to master high-pressure common rail technology.

Bosch launched an economical high pressure common rail product, priced between RMB 5,000 and RMB 6,000, for diesel engines for light commercial vehicles under 3.5 tons to meet the full implementation of light commercial vehicles under 3.5 tons from July 1, 2009. State III emission regulations.

Bosch Automotive Diesel Systems Co., Ltd. will also launch a low-cost common rail system for heavy-duty trucks by the end of this year. Bosch stressed that the quality of these low-cost products will not change, and economical common rail system components will be applied to various types of engines ranging from light trucks to heavy trucks. However, the company did not disclose the price level of heavy-duty low-cost common-rail systems.

Technical dispute

Bosch's expansion of high-pressure common rail system production capacity is not unrelated to the current technological disputes in China's heavy truck market.

Before, the domestic industry had a great deal of controversy over the State III technology route. In the end, most domestic engine companies and vehicle companies used the high pressure common rail system as the mainstream technical route for the upgrade of commercial vehicles. However, China National Heavy Duty Truck launched the State III heavy truck with the technology of “electronically controlled inline pump + EGR (exhaust gas recirculation)” and passed government certification, and its price is lower than that of the heavy-duty common rail system. In the first half of this year, the sales of heavy truck trucks of Sinotruk increased by nearly 50% year-on-year, and increased by 30% in the first three quarters, which is much higher than that of other manufacturers. Among them, most sales are contributed by heavy trucks that use EGR technology.

Although China National Heavy Duty Truck has adopted "non-mainstream technology", its market acceptance is beyond imagination, and government agencies also allow such vehicles to be marketed. Therefore, companies including Weichai Power and Yuchai are all planning to launch diesel engines using this technology. Anhui Hualing Automobile Group has already introduced heavy trucks using this technology.

The success of the heavy truck EGR heavy trucks has once again become the focus of the already quelled technical route.

For several different technical routes, Bosch Automotive Diesel Systems Co., Ltd., said relevant sources, including the Chinese market, the majority of the world's Euro III diesel engine is equipped with a common rail system, both for passenger cars and commercial vehicles . Moreover, engines that are equipped with common rail systems can be upgraded more easily to meet national IV and higher regulations and standards, without requiring much modification of the engine.

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