Yuchai's "Twelfth Five-Year Plan": Transformation and Upgrading, Second Venture

Transformation and upgrading and second-time entrepreneurship have become Yuchai ’s key words for the “Twelfth Five-Year Plan”. In the past five years, Yuchai’s core business has achieved significant operational benefits from the engine industry chain. The annual operating scale has remained at around 40 billion yuan, and the total tax paid was 7.3 billion yuan, an increase of 56% year-on-year; the cumulative sales of engines was 3.15 million units, an increase of 11% over the same period of last year. . Among them, the Group's core subsidiary Yuchai's total sales of engines ranked first in the industry for five consecutive years, with more than 160,000 export engines, an increase of 50% year-on-year.

On February 19, 2016, Yuchai Group located in Yulin, Guangxi Province, and the first MTU in Germany shook hands and jointly established Yuchai Anteyou Power Co., Ltd., which produces high-end engines. This is under the background of strengthening the supply-side structural reforms in the country, Yuchai took the initiative and made the first effort to surrender the beautiful answer of the “13th Five-Year” start year.


The core business of Yuchai in the past five years has achieved significant operational benefits from the engine industry chain.

1. Technical innovation enhances comprehensive competitiveness

Technological innovation is the foundation of corporate innovation. Yuchai’s “12th Five-Year” cumulative investment in research and development costs 3.5 billion yuan, adequate research and development costs, and promoted a significant increase in research and development technology capabilities. Yuchai Technology Center ranked the 20th in the evaluation of “National Accredited Enterprise Technology Center” and ranked first in the engine industry.

The National Engineering Laboratory for Energy-efficient and Environmental-friendly Internal Combustion Engines is the only national-level research platform for domestic internal combustion engine industries constructed by Yuchai. Since it was listed in 2011, it has built and perfected three research and development bases in Yulin, Nanning, and Suzhou, and has become the laboratory with the largest number of test benches in the internal combustion engine industry. It has played a key role in improving the technological innovation capability of internal combustion engines in China and enhancing the core competitiveness of related industries. . In March 2015, Yuchai cooperated with Dalian Jiaotong University and Shandong Kangyue to build the “Dalian R&D Center for National Engineering Laboratory for High-efficiency, Energy-saving and Environmental-friendly Internal Combustion Engines”, accelerating the technical bottleneck breakthrough of engine core components.

The powerful R&D strength has made great achievements. During the “Twelfth Five-Year Plan” period, Yuchai received 2,308 patents granted, a year-on-year increase of 281%. The number of granted patents ranked first among Guangxi enterprises for nine consecutive years. Successfully developed the first prototype of a vehicle diesel engine in China that meets Euro VI emission regulations, successfully implemented China's first batch of Euro VI diesel engines in the Beijing market, successfully passed the EU E/e-mark certification test, and started the export of domestically produced European VI engines to Europe and America. The company successfully developed and launched the YC6DV diesel engine to fill gaps in domestic medium- and medium-power V-type 6-cylinder diesel engines; successfully developed the first non-road T3 emission marine diesel engine in China; China's first counter-mounted engine was successfully ignited in Yuchai. "Key technologies and applications of diesel engine low noise design", "key technologies and industrialization of energy-saving and environment-friendly diesel engines" and other projects, won the second prize of the National Science and Technology Progress Award three times from 2012 to 2015.

In the past five years, Yuchai has cooperated with domestic and foreign authoritative internal combustion engine research institutes, universities, and internationally renowned parts and components companies to promote the connotative expansion of products overseas through project cooperation. It has achieved 43 technical cooperation projects and has broken through foreign technologies in key areas. blockade. A total of 50 new models have been launched. Engines account for more than 50% of the total sales volume, covering medium- and heavy-duty engines, as well as new energy sources and ship electric power. In the past two years, Yuchai's new product yields have all surpassed 30%, and have shown a trend of growth.

2. Lean operations catch up with international manufacturing standards

Product innovation depends on the improvement of manufacturing capabilities. During the “Twelfth Five-Year Plan” period, Yuchai implemented lean management for the advanced companies in the world and comprehensively upgraded its manufacturing production lines, greatly narrowing the gap with its international counterparts in terms of quality, cost, and delivery.

In 2011, Yuchai initiated the implementation of lean manufacturing projects and successively introduced experts in lean management, quality management, and procurement management from famous Japanese manufacturing companies, and strengthened the top-level design of lean basic management. At present, lean work has covered various business areas, subsidiaries, and industrial chains, and the lean production system (YCPS) has been gradually constructed to create an advanced manufacturing system. During the “Twelfth Five-Year Plan” period, 1,265 lean projects were carried out, and lean revenue reached 140 million yuan, with an input-output ratio of 1:3.7.

In terms of manufacturing technology, Yuchai cooperated with international and domestic well-known scientific research institutions to enhance and expand Yuchai’s advantages in developing and manufacturing non-road engines, digital forming technology, advanced forming technology, and advanced forming equipment, accelerating Yuchai’s Industrialization of rapid manufacturing and intelligent manufacturing. In 2014, Yuchai and the China National Machinery Research Institute launched a strategic cooperation to build a Yuchai rapid manufacturing base of the State Key Laboratory of Advanced Forming Technology and Equipment, and applied moldless rapid manufacturing technology to trial production of new products and product lightweighting process tests. In the field of cutting-edge high-end technology tests, the application level has reached the international advanced level.

Yuchai also launched a full-scale upgrade of the manufacturing line and integrated “Internet Plus” into production. At present, Yuchai’s “Digital and Large Engine Block Digital Casting Workshop” project was selected for the national smart manufacturing specialization in 2015 to promote the production of low-energy, high-quality, high-volume digital castings.

Yuchai has continued to promote a large number of major projects, strengthening the company's strong driving force and important support. In the past five years, Yuchai’s shipbuilding project was completed and put into operation; Yuchai United Power Co., Ltd., a heavy-duty engine production base in Wuhu, Anhui Province, was successfully put into production; the second phase project of the Foundry Center and the large casting workshop project were completed; and Nanchao Yuchai independently developed the NY9320 with independent intellectual property rights. Power medium-speed engines; 6T, 6C, 12VC and other series of marine electrical products are put on the market; Yuchai-Runtong new energy-saving and environmental protection high-quality small-scale diesel projects have settled in Chongqing, promoting Yuchai's product platform from medium and light platforms to micro and heavy platforms. Breakthrough to better meet the strong demand of the market.

3. Initial formation of market internationalization

During the “Twelfth Five-Year Plan” period, Yuchai overcame all kinds of difficulties in the tightening of the truck and construction machinery market, strengthened the research and development of light and heavy-duty engines, and continuously launched high-efficiency, reliable, engine products that meet the needs of market segments. The company achieved engine sales of more than 3.15 million units, and engine sales ranked first in the industry for five consecutive years.

Yuchai has improved its engine product composition, and its leading green emission drivers, namely State V and Europe V6, as well as new energy power and large ship electric power, have become the backbone of Yuchai's products. The proportion of sales of passenger cars and non-road engines increased significantly; the share of electronically controlled engines for vehicles increased year by year. Among them, the total passenger vehicle power sales increased by more than 30% year-on-year in the “Eleventh Five-Year Plan” period. The market share of gas passenger car engines has been the highest in the industry; the total sales volume of Tongji Engine Power has increased by more than 50% year-on-year; the sales volume of ship electric power has increased by 2.5 times. In traditional truck power, Yuchai 6K series products have established Yuchai's industry status with high quality and high horsepower, and the products have won the championship of truck fuel economy for 3 consecutive years.

With the implementation of the national "One Belt and One Road" strategy, Yuchai has been vigorously building an international development platform and an internationalized layout has taken shape. At present, Yuchai has established 14 overseas offices and 124 overseas service agents throughout the world. The business extends to Asia, Europe, the United States, Africa, and Oceania. Products are sold in more than 160 countries and regions; Yuchai International is registered and established. Export (Beijing) Co., Ltd. and Yuchai Europe Co., Ltd. have strengthened the promotion and overseas sales of Yuchai brand in foreign countries. In 2015, Yuchai Marine Power used Turkey as a springboard to open the door to the European market. A large number of products were exported to Turkey, and some of the marine electricity products entered the Netherlands and Germany.

In 2015, Yuchai's overseas engine sales exceeded 43,000 units, an increase of 23% year-on-year in 2014, a record high. Among them, the Vietnam market achieved more than 20,000 units, and the Saudi market achieved more than 3,000 units, which accounted for the highest number of domestic counterparts. In early 2016, Yuchai unveiled the Eurasian Maritime Exhibition held in Turkey. Its high-power marine generators became the most watched models on the site. On the first day of the opening ceremony, more than 10 orders were harvested. During the show, orders signed were more than 60. station.

In order to make a good start in the first year of the “13th Five-Year Plan”, Yuchai will face difficulties, grasp strategic plans, promote product structure optimization, and accelerate product technology upgrades. The construction and promotion of the core competitiveness of enterprises will become Yuchai’s winning weapon in seizing market heights.

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