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Internal Combustion Engine Industry in 2007: Contending to compete for princely competition
In the past year, the automotive diesel engine industry—once a stronghold for domestic brands—has begun to shift. With joint ventures, product launches, and strategic collaborations emerging, how will this transformation reshape the Chinese diesel engine market?
**Lightweight Competition: From 3.0 to 7.2 Liters**
In August 2007, two major events shook the Chinese diesel engine sector. First, Dongfeng Chaochai introduced the U.S.-developed NGD 3.0 diesel engine, while second, Dalian Diesel partnered with German Deutz to produce engines ranging from 4.0 to 7.2 liters. The launch of these products was marked by high expectations and strong industry support, with leaders from both sides and many domestic automakers in attendance. What does this signal about the evolving landscape of the diesel engine market?
At the product level, the NGD 3.0 is designed for urban utility vehicles such as SUVs, MPVs, and high-end light trucks, offering a modern power solution. Meanwhile, FAW Dachai and Deutz’s joint venture produces three key models—1013, 2012, and 2013—offering 4- and 6-cylinder options that meet the needs of light commercial vehicles.
From a market and strategy perspective, these moves by Dachai and Chaochai are significant. Dongfeng Chaochai's introduction of the NGD 3.0 reinforces its leadership in the light diesel segment, especially as SUVs and MPVs gain popularity in China. Similarly, Dachai’s partnership with Deutz expands its reach into the light commercial vehicle market, where it previously lacked competitive offerings in the 4.0–7.2 liter range.
This shift opens up opportunities for other independent brands. According to Wei Anli, secretary-general of the China Internal Combustion Engine Association, "While our own-brand diesel engines may not yet be strong, we are developing them. In the near future, the power market will belong to us."
Companies like Yunnan Engine have already developed the D106 and D109 engines, which are equivalent to 2.5L and 2.8L gasoline engines, targeting urban SUVs and passenger cars. Yuchai, a long-time leader in diesel engine production, has also focused on the 3.0-liter segment, with four different displacements making up nearly half of its total product line. Other companies, including JMC and Shanghai Hino, are also pushing into the 3.0–7.2 liter range.
The growing demand for urban SUVs, MPVs, and light-duty diesel engines, along with policy shifts favoring lighter vehicles, has created a booming market for diesel engines in this size range. As a result, the 3.0–7.2 liter segment has become highly competitive.
**NGD 3.0 Diesel Engine**
The NGD 3.0 is an electronically controlled, high-pressure common-rail diesel engine featuring an ECU for precise fuel injection timing, variable nozzle turbine control, and exhaust gas recirculation. It uses aluminum cylinder heads, roller rocker arms, and upright injectors. With a maximum power of 120 kW, it meets Euro III standards and can be upgraded to Euro IV or V. Noise levels are low at idle (72.5 dB) and moderate at full load (89.3 dB).
**Deutz FAW Diesel C, E, D Platforms**
These platforms include 4- and 6-cylinder engines covering 39 models, with 30 for automotive use and 9 for engineering applications. They meet Euro III standards and have potential for Euro IV compliance. Power ranges from 85 to 340 horsepower, with a starting torque of 600 Nm—over 10% higher than similar engines. These engines are lighter, more efficient, and quieter than comparable models.
**12-Liter Engines: A New Battleground**
Another trend in the industry is the rise of 12-liter diesel engines, following the dominance of 10-liter models. Companies like Weichai have already made their mark with 11.6-liter engines, but now the race is on for the 12-liter segment.
Weichai’s WD12 engine, launched in 2006, quickly became a bestseller, exceeding 10,000 units in sales within a year. However, new competitors are entering the market. FAW, for instance, has reserved space for its own R&D, while Xichai has independently developed the 13-liter CA6DN1 engine, now used in the Jiefang J6 heavy truck.
International players like Cummins are also making waves. Dongfeng Cummins and Xi’an Cummins are developing high-power 13-liter engines, set to challenge the existing market leaders. Meanwhile, China National Heavy Duty Truck is investing heavily in research for even more powerful engines, signaling a new era of competition.
As FAW pushes down, heavy truck manufacturers push up, and international giants attack from both sides, the 12-liter segment has become a battlefield for the next generation of diesel engines.
Who will emerge as the new leader? The battle is far from over, and the future of the Chinese diesel engine market remains uncertain—but one thing is clear: the war for power is just beginning.