China becomes the world's largest engine manufacturer's future strategic priority
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China's auto market has unprecedented "blowout." While overseas auto giants have stepped up their efforts to enter the auto market in China, overseas parts and components companies have not been behind. Cummins, the largest diesel engine manufacturer in the world, the American diesel engine manufacturer, decided to take the Chinese market as a breakthrough point out of the global economic crisis. The Chinese market has become the top priority of its future development strategy.
The reporter learned today that Cummins has announced its latest development strategy in China in Beijing. Last year Cummins ’ global performance declined. As China's commercial trucks, such as heavy trucks , also suffered cold weather last year, their sales in China were also not satisfactory. Although Cummins has established a joint venture in China for more than 10 years, it is not satisfied with China. According to Cao Side, the newly appointed vice president of China Business Group, Cummins's future development strategy in China is: From this year, it plans to use five years to change the "self-centered" development strategy and actively cater to the Chinese market. Products will be extended from the high end to the mid-end and will be tailored to the Chinese market. This year, the growth rate of China's commercial vehicle market will be about 10%. As the first year of strategic adjustment, Cummins ’s sales in the Chinese market are expected to reach US$2.5 billion this year, a year-on-year increase of 20%.
According to industry insiders, given that the foreign giants of parts and components have begun to increase their localization efforts, they are currently facing a fierce competition in the Chinese auto parts industry and will face a fierce new round of impact.