Recently, Delphi’s CEO and President O'Neill made a special trip to China to attend the groundbreaking ceremony of Delphi’s investment in the diesel engine management system base in Yantai Development Zone. The initial investment in the production base was approximately US$100 million, which was more than 20 years ago. The largest single project in the region is invested, and the factory plans to start production by the end of 2013. O'Neill said in an interview with the media that Delphi China's diesel engine business will account for 30% of Delphi's global diesel business. At present, Delphi China's diesel engine business accounts for about 5% of Delphi's global diesel business, while O'Neill hopes Delphi's diesel business It will account for 20% of the Chinese market. Delphi uses an electronically controlled high-pressure common-rail system diesel engine, which can save an average of 30% fuel compared to the same level of traditional gasoline engines, while reducing the carbon dioxide emissions by approximately 25%. The application of this technology matches the urgent need of China for reducing emissions. . In July 2012, the State Council announced the implementation of the “Limits and Measurement Methods for Exhaust Pollutants from Heavy-Duty Vehicle Gasoline Engines and Vehicles (China III, IV Phase)â€, and announced that all production will begin on July 1, 2013. Heavy-duty vehicle gasoline engines and vehicles registered, imported, sold, and registered must meet the requirements of the National IV standard. The State Council issued the newly revised "Ambient Air Quality Standards" to include PM2.5 as a monitoring indicator and to control the pollution of motor vehicle exhaust emissions. The forthcoming implementation of the National IV standard is an opportunity for Delphi. However, Delphi participates in the competition for the common rail technology market, which means that it will challenge Bosch's market share in the Chinese diesel engine business. “At present, Bosch has an approximately 80% share of the electronically controlled high-pressure common-rail diesel engine market. However, high-pressure common-rail diesel engines only account for 20% of the diesel engine market. Therefore, high-pressure common-rail diesel engines still have great market potential. This is us. Opportunity.†A personage from the Bosch (China) Investment Company told reporters. Bosch is one of the earliest foreign-funded parts and components companies that have been localizing diesel engines. In 2004, Bosch and Wuxi Weifu Hi-Tech Co., Ltd. established a joint venture company, Bosch Automotive Diesel Systems Co., Ltd. To seize business opportunities brought about by the implementation of the National IV Standard in July next year, in March this year, Bosch Automotive Diesel Systems Co., Ltd. invested about 1.6 billion yuan in Qingdao to build the second production base in China, the main product of which is high-pressure common rail system fuel injection. Device. “Our high-end products are purchased from Bosch's high-pressure common-rail diesel system.†Liu Xuguang, Division Chief of Foton Automotive Markets, told reporters, “The local diesel engine suppliers mainly use other technical routes, and they are based on high-pressure common-rail diesel system technology. Without an advantage, if the domestic regulations are further upgraded to new standards, it is very necessary to use high-pressure common-rail diesel systems." However, high pressure common rail technology has been criticized for its high price. Since entering the diesel engine business, Bosch has been awarded an overpriced hat. “As the localization rate increases and the annual sales increase, the price of the product will decline. The decline depends on factors such as market demand, localization rate, and production capacity.†Chen Yudong, president of Bosch (China) Investment Co., Ltd., was in April this year. An interview with reporters said. Chen Yudong said that in fact, from the perspective of end-user demand, they are more concerned about the complexity of common-rail technology. For Chinese owners, diesel common rail system is a new technology. For this reason, Bosch began to strengthen the training of the aftermarket from this year. For Delphi's participation in the competition, Bosch (China) Investment Co., Ltd. insiders expressed a welcome attitude, "this market is still nurturing, Bosch can not account for 100% of the market share, new suppliers can cultivate the market together." According to industry insiders, not only foreign companies such as Bosch and Delphi have accelerated the investment in high-pressure common rail technology, but also the multinational parts companies German Continental Group and Japan Denso Co., Ltd. are accelerating their market deployment.
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China is in the stage of upgrading from the traditional mechanically controlled diesel injection system to the electronically controlled diesel injection system. More and more multinational auto parts companies have stepped up competition for this emerging segment of electronically controlled diesel injection systems.