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Shangchai Power (Shanghai Diesel Engine Co., Ltd.), the largest diesel engine manufacturer in China, is in the process of realizing the transformation of two major businesses. One is the development of vehicle engines after joining SAIC, and the Other is the acceleration of new energy business. Xie Weiming, general manager of Shanghai Diesel Power Co., Ltd. disclosed the company's new strategy when he was interviewed by Nanfang Daily on the 11th. He also said that the main natural gas engine for the company has already reached the harvest season.
Two major businesses to do "addition"
Shangchai Power was incorporated into SAIC Group at the beginning of 2008. Based on its own complete diesel engine system, SAIC Motor became an important member of SAIC Motor to build a core component system for commercial vehicles. Xiong Weiming stated that Shangchai was mainly engaged in the construction machinery business. Now it is necessary to quickly increase the vehicle business, which only accounts for 20% of the total, to around 50%, in order to cooperate with SAIC in the commercial vehicle business. “But the two major businesses are doing additions.†Xiong Weiming believes that with the increase in infrastructure construction in China, the construction machinery market is still very important. Shangchai will speed up the upgrading of loaders and shift from large displacements of 8 to 9 liters. The 6-litre machine was changed to enrich the product line; in addition, it was to strive to break the monopoly position of the imported brand in the field of excavators. "Shangchai will invest 8 billion R&D new platforms next."
SAIC and Iveco have also accelerated the pace of commercial vehicle cooperation in the near future. Xiong Weiming stated that SAIC Iveco will focus more on supporting the joint venture brand, while Shangchai will focus on its own brand, which is an important force for SAIC to develop its own brand of commercial vehicle.
Natural gas engine wants to account for 30%
Xiong Weiming, who came from SAIC New Energy Department, has another mission after airborne Chai is developing new energy engine business to match SAIC's new energy strategy. Shangchai took the lead in developing the natural gas engine business ten years ago. It was mainly used in city buses and special trucks. Major customers include Auman Heavy Trucks, Shaanxi Automobile Heavy Trucks, Xiamen Golden Trip, Shanghai Shenwo, Dandong Yellow Sea, etc. In China's natural gas bus power, truck power market, the market share reached 80%. And successfully entered Thailand, Malaysia, five countries in Central Asia, Russia and other natural gas rich markets.
"Natural gas engines now account for less than 10% of Shangchai's business share, and will increase to two or three percent after three years and will also be an important profit point for Shangchai," said Xiong Weiming.
In the field of new energy, the dimethyl ether technology developed by Shanghai Diesel has also been gradually applied commercially. The Shanghai municipal government has established the first domestic dimethyl ether refueling station, and 10 buses equipped with diesel generators have been put into commercial operation. In addition, there are hybrid technologies for Shangchai to develop, of which gas-electric hybrid power will become a new trend.