When I visited Yunnei Power, the author learned that the company has adopted diesel engine as the core competitiveness of the next stage of enterprise development. As to whether the diesel sedan is suitable for China's national conditions, there has been no discussion on the issue that has been discussed in China for the long term. This article does not mention it for the time being. Instead, it talks about the company's strategy on the matter.
How should an independent engine supplier survive? Whether it is overseas Cummins, or domestic Weichai, Yuchai, their business ideas are surprisingly consistent: technological leadership can lead the competition. Yunnei Dynamics also adopted this idea, but it is not the same as these large companies: Due to the weaker overall strength, the company implemented a "Blue Ocean" strategy based on technology leadership.
In 1990, the company opened the market with a 4100QB engine. Of these, there are technologically advanced factors, but more importantly, the company has found a market gap between the 495 engine and the 4102 engine, lacking a product that can combine the advantages of two engines. So, after finding this “Blue Oceanâ€, the company relied on the advanced technology accumulated before and developed a 4100QB engine with a high cost performance and a large market demand.
This time the choice of diesel engine as the core of the next phase of corporate development, the company is also lacking in this regard.
Although car companies are mostly willing to manufacture their own engine and transmission core components, the independent engine suppliers such as Shenyang Aerospace Mitsubishi and Dongan Mitsubishi are also developing very well in the gasoline engine sector. So, is it possible to have a similar independent engine supplier in the diesel engine field?
In my opinion, because the government has not yet made it clear whether it supports the development of diesel cars, it is necessary for such a domestic diesel engine supplier to act as a pioneer. The reason is as follows:
First of all, because the government has not expressed its position, domestic automakers are at greater risk of going on the sedan project, and an independent supplier can help the former to bear this investment risk.
Second, because of its higher technical requirements, sedan diesel engines need a certain scale. According to relevant sources, only diesel cars with annual sales of more than 100,000 vehicles will have economies of scale. Therefore, as an independent supplier that can supply a number of vehicle companies, the diesel engine provided by Yunnei Power can greatly reduce the purchase cost of each company.
The “Blue Ocean†strategy based on Yunnei’s technological leadership is worthy of reference for domestic auto parts companies that are preparing to upgrade their products.
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