Nanyue Electronic Control: Localized Brand Internationalization Standard

As a leading company in the industry, Nanyue Electronic Control (Hengyang) Industrial Technology Co., Ltd. is one of the large-scale domestic fuel injection system manufacturers. It has won the "National Civilized Machinery Industry Unit", "China's Internal Combustion Engine Industry 100 Years Achievement Award," and "China Automotive Industry Science." The First Prize for Technological Progress Award and many other national honorary titles. Nanyue Electronic Controls, with its prestigious reputation, adhered to international standards while maintaining its commitment to building a first-class localization brand, and all of its facilities, technologies, products, and services were aligned with international standards.

It is now three months past the date of the nationwide switch of the National IV emissions standard on July 1. In the three months, major commercial vehicle companies have responded quickly and have launched the Fourth National Product to meet new emissions. As the "engine heart" of the fuel system, the impact on the vehicle is no small matter, but it is even more important to meet the national standards. Recently, the China Truck Network reporter visited the Nanyue electronic control company to understand its preparations for the State IV fuel injection system products, production capacity and technology, and the results of independent innovation of the company. It also communicated with business leaders on the current status and existing problems of the industry and other industries. The content of public concern has been communicated in depth.

Aiming at the commanding height of technology and taking the road of independent innovation

Nanyue Electronic Control is one of the few companies in China that sticks to the path of independent innovation and development. After experiencing the impact and experience of the market economy, Nanyue Electronic Control has been committed to technological innovation, product upgrading, and fully prepared for the promotion and implementation of the State IV emissions.

It is reported that Nanyue Electronic Control can now provide electronically controlled high pressure common rail system, electronically controlled monomer pump plus post-processing, and electronically controlled VE pump three kinds of national four programs. Among them, electronically controlled monomer pump products have achieved mass production, and have become the national IV solution for many major engine manufacturers such as Yuchai and Xichai, which occupies a very large market share and the production capacity can reach 150,000 sets. The VE dispensing pump is a product developed by the company in 2012 and is currently being supplied to Chaochai. The high-pressure common rail system has been verified in small batches, and it is now capable of mass production. Zhouyue Jin, general manager of Nanyue Electronic Control, said: “From the current product line of the company, we have gone from traditional mechanical pumps to the electronic control and common rail products of the National 3 and the 4th countries, and we are aiming at the future technological commanding heights. Actively develop R & D to meet the higher emission standards product categories."

Nanyue Electronic Controls General Manager Zhou Zhijin
Nanyue Electronic Controls General Manager Zhou Zhijin

Zhou Zhijin said: “The fuel injection system is the top form of manufacturing companies. The accuracy of the products is very high. The technical process of products requires a long history of precipitation. There is a strict maturity in the design, manufacturing, and technology of products. Requirement.” Nanyue is one such enterprise engaged in R&D and production of fuel injection systems for decades. Starting from 2006, it has been preparing national product projects for the third time, producing small batches in 2008 and supplying it in large quantities in 2009. So far it has provided electricity to the market. Control unit pump up to 300,000 units. From the point of view of the technology, process and reliability of the electronically controlled monomer pump, the product has been recognized by the market and is welcomed by customers and users. At present, the electronically controlled monomer pump has been upgraded to the fourth level in the country, and there is also room for improvement for the State V. For future common rail systems with more potential for improvement, Nanyue Electronic Control is investing heavily in research and development. “Nanyue Electronic Control has developed according to the concept of producing one generation of reserves and developing one generation of ideas. We always consider how to ensure that Nanyue's products meet the needs of the automotive industry in the future.” said Zhou Zhijin.

In terms of product technology and independent innovation, Nanyue Electronic Control's product echelon currently covers the country 2nd and 3rd products, and at the same time, it is in line with the new standards to launch the Guosi products. In addition, it also does R&D and some basic preparation work for the 5th national products.

The scale of industrialization becomes a new economic growth point

In recent years, Nanyue Electronic Control has focused on improving intellectual property, promoting technological innovation and enhancing market competitiveness. "About the market share of Nanyue products, there are differences from different product lines: Yue'nan products occupy the major share of mainstream markets such as FAW, Dongfeng, CNHTC, Dachai, Xichai, Weichai, and Yuchai in the mainstream. The market occupies 30%; Nanyue launches a large quantity of Guosan's electronically controlled monomer pumps that have a typical state-specified technical route. This product has a market share of over 95% in China and competes with Bosch and Delphi. Year by year," said Zhou Zhijin.

As a localized ethnic enterprise in the face of competition in the international market environment, where is the obvious competitive advantage? Zhou Zhijin said: "I think from the point of view of R&D capabilities, we do have a certain gap with Bosch and other large foreign companies with great qualifications. However, today's Chinese companies, besides some original technologies and multinational companies, are different. At the manufacturing stage, we have gradually caught up. From the equipment point of view, we have basically entered the world-class equipment level."

Localized companies are also continuously expanding their development models and relying on their own domestic brands to improve their own technological level. Zhou Zhijin said: “As a localized company, Nanyue has always established cooperation with scientific research institutes, including Tsinghua University, Jiaotong University, FAW Steam Research Institute, and other scientific research companies. Through cooperation, Nanyue has achieved rapid progress in technological development. Application development is gradually approaching multinational corporations. In terms of customer resources, local companies’ national brands and national policies will win more opportunities."

At the same time, the current economic development situation in China has a lot of dividends. The development of the domestic economy has driven the development and growth of local enterprises. “The product price we provide to our customers has obvious advantages. As we continue to update our technology, our scale continues to expand and our products meet customers’ needs in terms of product quality, the prices are even lower, so we say that local companies have unique advantages. The cost advantage." Zhou Zhijin said.

Under the market economy environment, the characteristics of intensive development have become increasingly evident. The development of an enterprise is not only the development of the enterprise itself, but also the product supply chain. Zhou Zhijin said: “Nanyue has been planning to build its own supply chain system. Now the supply chain system of Nanyue's traditional products and Guosan's products has been established. Currently, the supply chain system of the National IV product is being launched.”

In accordance with the strategic planning of Nanyue Electronic Control in the next five years, it plans to invest 1.5 billion yuan to form a production capacity of 500,000 common rails and 300,000 sets of electronically controlled monomer pumps at the end of 2016. This will enable the company's products to transition to high-tech industries and create new economic growth points.

Multi-Factor Restrictions on State IV still need to be promoted in multiple ways

In terms of the implementation and promotion of the National IV emissions, Nanyue Electronic Control 4 products with a mature technology line have been trial-produced and mass produced. However, relevant statistics show that only 10% to 20% of the supporting parts and components are being used effectively. It can be seen that there is a certain degree of difficulty in the promotion of the state's supporting products in the market. Then, what are the limiting factors for the promotion of the four products in the country?

The implementation and promotion of State IV will ultimately be implemented on the users after the improvement of product technology in the supporting parts and components and vehicle companies. Zhou Zhijin said: “Market research shows that one of the biggest limiting factors for the promotion of the Fourth National Product is users. They are refusing to use National IV products in terms of acquisition cost and use cost.” Except for end-user acceptance, Controlled fuel systems have high requirements for oil products. Substandard oils that do not meet the standard can easily damage the fuel system and increase maintenance costs. The maintenance cost of the country's four components and parts is much higher than that of the country. These are the limiting factors for the implementation of State IV promotion.

It is necessary for the state to introduce compulsory measures and policies to promote the promotion and implementation of the country's four emissions. The introduction of the State Ten will also cause everyone to pay more attention to the new requirements for energy saving and environmental protection. However, the promotion of the National IV emission standard is not only simple because of the simple implementation of the policy. After the engine factory and automobile plant have completed the National IV technology, the real problem is the subsequent correlation problem. Zhou Zhijin said: "There is still a lot of work to be done about the country."

There is still a long way to go to promote the country. This is an arduous task. “The third country has been going very hard, and it is destined that the country will not be even. But this road must go forward, and it will be difficult to move forward again,” said Zhou Zhijin. “As a supporting local company, we must do a good job. Our own affairs, taking up the corresponding social responsibilities, cultivating users' awareness of energy conservation and environmental protection, and using multiple parties in the production side, will achieve very good results.”

In the road of energy saving and emission reduction, Nanyue has been working hard on the electronically controlled fuel injection system industry. High-tech products developed by Nanyue Electronic Control have repeatedly led the development of China's fuel injection system and have become a domestic company with core technology in this field, the electronically controlled fuel injection system, which has achieved industrialization and commercialization.

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