Shenzhen restricted diesel vehicles, Volvo abandoned diesel engines, and diesel engine manufacturer Steyr (000760) was reduced by shareholders... Has the diesel engine industry gone to a dead end?
Recently, Shenzhen issued the "Shenzhen Atmospheric Environmental Quality Improvement Plan (2017-2020)", which identified 30 measures in seven areas to improve the atmospheric environmental quality. Before the end of June 2017, formulate financial subsidy policies to encourage enterprises and individuals to eliminate old motor vehicles in advance. Before the end of 2020, through compulsory scrapping, financial subsidies, traffic restrictions, etc., gasoline vehicles with National I and National II emission standards and diesel vehicles with National III emission standards for more than 10 years will be basically eliminated.
The increase in emission standards has indeed brought tremendous pressure to passenger car manufacturers. In an interview with the media at the 2017 Geneva Motor Show, Volvo Car Group CEO Hanken Samuelson said, “The next focus will be the development of hybrid and pure electric models. After 2020, Volvo will abandon diesel engines.” He The reason is that the relevant regulations require Volvo to reduce the average carbon dioxide emissions of car companies to 95g/km by 2020. In order to meet the regulatory requirements, Volvo will focus on pure electric vehicles.
Not all are so pessimistic about the future of diesel engines. A few days ago, BMW officially released its entry-level diesel model 520d, which is equipped with a 2.0T diesel engine. The official fuel consumption (under NEDC cycle conditions) is 3.9-4.3L/100km, which is a new generation of 5 It is the "most fuel-efficient non-hybrid vehicle".
Steyr, an A-share listed company, was reduced by three shareholders as a better proof that diesel engines entered a dead end. In 2013, 6 companies participated in Steyr's fixed increase. According to the agreement, the ban on this part of the funds will be lifted after December 29, 2016. In the first quarter of 2017, three fixed-increasing targets announced the reduction of Steyr.
Steyr’s six fixed increase targets, five are M&A funds, and most of the PE funds are structured, and the capital cost is high. The cost of locking for three years is huge. But these three fixed-increasing targets are only a fraction of the shares held by the block trading platform. If you are not optimistic about the future of the diesel engine industry, why not empty them all? If the diesel engine is really a dead end, then who will take the order on the bulk trading platform?
Significant increase in non-road diesel engines
In the detailed version of "Made in China 2025" issued by the Ministry of Industry and Information Technology, it is proposed to "promote the independent development of high-pressure common rail technology for diesel engines, and promote the application of diesel engines in passenger cars." It can be seen that China's independent development of diesel engine technology has just started.
Sales data for the first two months of 2017 calculated by the China Automobile Association. Data show that the sales of heavy trucks reached 86,000 in February 2017, a year-on-year increase of 146%. In February, the top ten companies in the automotive diesel engine market sold a total of 314,000 units, a year-on-year increase of 94.34%. Among them, Yuchai, Jiangling, and Sinotruk have increased by more than 150% year-on-year. Weichai, Yunnei, Foton, FAW and other companies also performed well.
"The growth of the diesel engine market is directly related to the increase in the off-road market." An insider told this reporter. Mainstream engine companies are actively expanding the off-road market. In 2012, Xichai began to deploy in the off-road market. Currently, the non-road sector has accounted for 30% of Xichai's total sales. At the beginning of last year, Yuchai began to deploy in the off-road market, introducing MTU's S4000 series engine technology, which is mainly used in the field of generator sets, and will expand to the ship market in the future. In the same year, Yunnei Power announced that it had increased its capital by 38 million yuan in Shandong Yunnei, and actively deployed the non-road market in the State III and State IV phases. Yunnei Power's diesel engine sales in 2016 became the “big brother” of the industry, an increase of 22.5%-42.44% over the same period last year.
According to our reporter, although Steyr, the new major player in the diesel engine market, is focusing on the Chinese military market, its product lines cover construction machinery, marine aircraft, aviation, agriculture, military, range extenders, and generator sets. It is understood that before the completion of the construction of a fully automatic production line with an annual output of 30,000 units last year, it received an intent to cooperate with diesel engines in the field of maritime ships.
According to Li Jin, general manager of Shenzhen Anshun Energy Saving Technology Co., Ltd., told our reporter that for a long time, engines in the global port machinery field have been monopolized by several international giants, but with Shanghai Port, the world’s largest container terminal, and Shenzhen, the world’s third largest container terminal. The recognition and adoption of Steyr's products by Hong Kong, this situation is being changed by Steyr.