The outcome of the debate: The market chose EGR

EGR, the most controversial term in 2008, has an accurate position today. This position should be: The market affirmed EGR, the market chose EGR, the market is always correct, so the development of EGR is undoubtedly correct.

Wise decision

In order to protect the environment and reduce air pollution, the domestic heavy-duty truck industry has begun to implement the National III emission standards. Before the new standards were formulated, major domestic engine manufacturers began to develop diesel engines that meet the National III emission standards. Internationally, high-standard emission engine technologies are available in the following categories: Electronically controlled high pressure common rail technology, electronically controlled EGR technology (ie, exhaust gas recirculation), electronically controlled pump nozzles, and electronically controlled monomer pumps. In these several technical routes, except that the engine plant of China National Heavy Duty Truck selected electronically controlled EGR, almost all high-pressure common rail technology was selected.

As early as July and August 2005, China National Heavy Duty Truck executives and technicians went to Europe and the United States to inspect high-emission engine technology. After returning home, the decision-making layer made repeated research and made a decision on the existing common rail engine technology route. , Independently research and develop electric control EGR engine decision-making. The reason for this decision is that the common-rail engine technology is precise. Some of these technologies are protected by foreign patents. The development of a common-rail engine can only be a manufacturing process rather than a creation of independent intellectual property rights. As a major automobile country in the world, its core components should have Independently-innovated products; key components of common-rail engines need to be imported, and this will inevitably be subject to the monopoly of a handful of auto parts giants abroad in terms of component prices and supply quantities. This will result in an annual output of more than 100,000 trucks. Steam is unacceptable. Compared with common-rail engines, electronically-controlled EGR engines have low manufacturing costs, are inexpensive, and have low requirements for oil products. In addition, maintenance is easier than common-rail engines and therefore more relevant to national conditions.

After the decision-making, SINOSTEEL organized technical personnel to carry out R&D in the year and took out an electronically controlled EGR engine with independent intellectual property rights in just over a year. After the trials and self-tests were configured on the self-produced vehicle, all indicators reached the target. State III standard.

However, the heavy truck management did not expect is that the advent of electronically controlled EGR engine attracted a tidal wave of accusations, peers in the mouth to identify it as a false country III standard, is the customer and national environmental protection policy 忽悠. In the face of accusations, SINOCHEM's management team is clear-headed, not counter-attacking, but is immersed in doing their own homework - constantly improving their own products.

At the end of 2007 and early 2008, the electronically-controlled EGR engine produced by CNHTC was tested twice by the Tianjin National Automobile Inspection Institute, and it was determined that the engine had reached the national III emission standard, and as a result, it got an announcement on the license plate. In this way, the accusation still did not stop, forcing the State Environmental Protection Administration to take a secret and surprise approach by sending an expert team to the Hualing Company to randomly collect 8 sets of Hualing vehicles equipped with EGR engines on the site and install the engine from the automobile assembly. Hanging on the assembly line, the site was packaged and transported to the Chongqing Automobile Inspection Center for inspection. The entire process of the inspection process was monitored and the same results were obtained. The result was approved by the State Environmental Protection Administration, so that the accusations gradually subsided.

However, the success of a new product must ultimately be tested by the market.

Market choice

After July 1, 2008, China’s heavy-duty truck users face two choices. One is to choose a car equipped with a common-rail engine, and the other is to choose an electric-controlled EGR engine that is equipped with heavy-duty trucks. What choice will the market make?

First of all, from the analysis of Sinotruk customers, more people chose EGR. Heavy-duty trucks are the largest heavy-duty truck companies in China with annual sales of more than 100,000 units, and their heavy truck engine market share exceeds 40%. From the second half of 2008 to the first quarter of this year, they produced heavy trucks that were equipped with both EGR and common-rail engines. The total sales of EGR engines accounted for more than 80% of the total sales.

From the analysis of the environment outside the enterprise, more and more automobile manufacturers have chosen to cooperate with CNHTC. The earliest cooperation with EGR was Hualing Automotive. This company, which was very good at capturing market opportunities, was not affected by the public opinion on EGR charges. It first saw the competitiveness of EGR in the domestic market, and it took the lead in developing a good cooperation with CNHTC. . Subsequently, companies such as Hongyan, Liuqi, Jianghuai, and others followed suit and joined the ranks of Sinotruk cooperation.

More and more heavy-duty truck users and heavy-duty truck manufacturers have chosen EGR. One is to take advantage of the fact that one EGR engine has a price advantage of one to twenty thousand compared with a common-rail engine, followed by its convenient maintenance and oil-based products. Low demand.

Ironically, the engine companies that originally accused CNGC of EGR have quietly developed their own EGR in the face of the strong impact of EGR on the engine market. For example, Weichai has recently launched its own EGR products. Heavy-duty truck companies such as Auman and Shaanxi Auto, which previously dismantled heavy-duty truck EGR, have also started to sell vehicles equipped with EGR engines. This also confirms from the side that EGR has uncontrollable forces in the domestic market. On the market, EGR clearly occupies The upper hand.

Facing new challenges

Into 2009, heavy-duty truck ECU is facing new challenges.

The challenge first came from domestically produced common-rail engines. Due to the advent of heavy-duty auto's EGR engine, the common-rail engine undoubtedly has a huge impact. Foreign companies that provide key accessories for common-rail engines have substantially reduced their prices in order to participate in the competition in the domestic market. The price of an injector was reduced by more than half from the initial import price, and six injectors were used on one engine. This alone could reduce the cost by about one million yuan.

Such price reductions are good for saving national foreign exchange, breaking foreign monopolies, saving engine manufacturers' costs, and even for customers. This proves that the successful R&D of electronically controlled EGR for independent innovation is very correct and timely. However, for heavy-duty EGR, it is to weaken the price advantage and reduce the price competitiveness.

The biggest challenge comes from the research and development of EGR in the industry.

Electronically controlled EGR is an innovative product independently developed by CNHTC. The technology is protected by patents. Other manufacturers develop mechanically controlled built-in EGR. This kind of EGR R&D costs and manufacturing costs are lower than that of electronically controlled EGR, so the market sells price. It is also lower than electronically controlled EGR, which creates a counter-impact on heavy-duty EGR.

Faced with these two challenges, how will CNHTC respond? Ding Guichun, deputy general manager of CNHTC’s engine sales department, was quite confident when talking about this issue with the author. He believes that CNHTC's EGR III engine has independent intellectual property rights, mature technology and stable performance. In less than a year, more than 80,000 units have been put on the market, which has been widely recognized by users and the market. Excessive reaction to business and sales strategies.

This may not be the case. I understand that heavy-duty engine salesmen have secretly begun to blame the built-in EGR. They believe that built-in EGR is due to the use of mechanical control of exhaust emissions, and the stability is very poor, it is difficult to meet the national III emission standards, is a false EGR. At the same time, there are many problems with the built-in EGR detectability and supervisability, and there are regulatory risks.

Is this not the case? This is not the final say for the market.

Weichai's built-in EGR has also passed inspections and obtained an on-board notice, but it has not been approved by the State Environmental Protection Administration and has not yet entered the qualification in some major cities. As to whether or not China III emission standards can be stably met, it can only be confirmed after more rigorous testing and supervision. However, despite the fact that the country has formulated and implemented new emission standards, it is very ineffective in supervision. It is doubtful that not only can the various State III engines meet the emission standards stably, but also some State II engines can change their branding and change their status to become countries that have quietly entered the market. This is not impossible, and it requires strengthening supervision. It can be said that the lack of enforcement and lack of supervision is more important than the debate on the State III technology line. Otherwise, the new standard will be useless, reducing atmospheric pollution and protecting the environment will be empty talk.