Yunnei enters new energy and opens up new opportunities

A good car still needs good momentum. After more than 50 years of experience, Yunnei Power is ushering in a good period of leap forward in development.

At present, Yunnei Power is co-jointly establishing Tianjin Tongzheng Electric Vehicle Technology Co., Ltd. (hereinafter referred to as Tianjing Songzheng) and Tongji Automobile Design & Research Institute Co., Ltd. (hereinafter referred to as Tongji Auto-Institute) to establish the power system of Wuxi Tongrun New Energy Vehicle. Technology Co., Ltd. (hereinafter referred to as Wuxi Tongrun), and will take this into the field of new energy vehicle power.

Professionals in the industry analyzed that: “It is worth noting that after the company’s coaching change, the weather is updated, the performance is excellent, and the action rules are in place. The idea is to determine the way out. More importantly, if this step is taken smoothly, Yunnei will form a new energy source. The three major business areas of power, natural gas engines and diesel engines will keep pace with each other. The combination of these three carriages and the policy-level superposition at the national level will create a major historical opportunity for Yunnei's development.

The new energy vehicle field has a bright future

Yunnei Power recently stated that the company intends to establish Wuxi Tongrun in joint venture with Tianjin Songzheng and Tongji Auto Industry Research Institute. It will focus on issues such as the integrated design, manufacturing and sales of new energy vehicle power systems.

The new energy vehicle is one of the seven strategic emerging industries in China. According to the national “Energy-saving and new-energy automotive industry development plan (2012-2020)” (hereinafter referred to as “industry planning”), the pure electric drive will be the major transformation of the automobile industry. The strategic orientation will focus on promoting the industrialization of pure electric vehicles and plug-in hybrid vehicles, popularizing energy-saving vehicles, and increasing the overall technological level of the automotive industry.

For Yunnei Power, entering the field of new energy vehicle power systems is not only a need to adapt to the development of the times, but also an inevitable choice for continuous breakthroughs in innovation.

It is understood that Yunnei Power has been in the domestic light truck engine company about 5-6 positions, and the establishment of a joint venture to enter the new energy vehicle power system and other core areas, the competitiveness is expected to significantly increase. It is expected that the sales volume of new energy vehicles in the country will reach around 200,000 to 300,000 vehicles in 2016, which will provide a good opportunity for the company's new energy vehicle business to develop rapidly.

In addition, the arrival of the new energy era is conducive to the integration of Yunnei's current rich engine customer resources and providing the company with a broad market space for new energy.

Three carriages formed

Yunnei’s traditional business is based on diesel engines and has accumulated many years of experience in this field. However, with the continuous layout in recent years, Yunnei’s power products have become more and more abundant. Besides the diesel engines, they have gradually entered the power field of natural gas engines and new energy vehicles. In the future, these three major areas will become the driving forces within the cloud. Three carriages striding forward.

Yunnei Power, with its first-mover advantage of natural gas engines, has received a lot of purchase intentions of natural gas engines from vehicle manufacturers. In 2014, the company completed a non-public issuance of additional funds of approximately RMB 740 million. The funds raised were mainly used to invest in the “engineering project of environmental protection and high efficiency light commercial vehicle engine industrialization”, which also included “an annual output of 50,000 units YN30/36/. 38QNE environmental protection commercial vehicle natural gas engine machining, assembly, commissioning production line construction project. With the constant investment in non-public offering of stocks, the company’s product line has been further enriched, and the company’s competitiveness in the gas engine segment market has also increased. It is expected that natural gas engines will become a new engine for Yunnei’s dynamic performance growth in the future.

Through more than 50 years of technical precipitation, Yunnei Power has mastered the mature National IV engine technology. The original commercial vehicle diesel engine is the foundation of Yunnei's power development. At present, this series of products has reached the national four emission levels. With the implementation of the National IV emission standards, the company’s market share of commercial vehicle engines will continue to rise due to its technological advantages and price advantages.

In terms of specific products, the company's D-series products are developed in cooperation with Germany's FEV company. The technology is globally in a leading position. The D-series engines produced by the company have been exported to the United Kingdom with SAIC's MG, and its emissions have reached Euro 5 level. With the launch of several models of the company's D-Series engines, sales of the company's D-Series engines have increased significantly compared to 2013.

According to Yunnei's strategic development plan, the company will focus on grasping the major historical development opportunities for the strict implementation of the National IV and China Five emission standards in the next few years, and strive to become a leader in the multi-cylinder and small-diameter diesel engine industry, achieving substantial growth in performance. The strong momentum of the above three carriages is expected to be achieved sooner.

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