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The Commercial Vehicle State III Standard Attacks from the Collective Investing in Foreign Investment for Technology
With the full implementation of the National III emission standards across the country, the commercial vehicle market has experienced a different level of impact compared to the passenger vehicle sector. The high technological barriers, significant investment costs, and evolving dynamics in the diesel vehicle market have all contributed to continued volatility in the commercial vehicle industry in 2008.
"Attracting the wrong technology path can lead to losing the entire market," emphasized a representative from Cummins (China) at the 2008 China Commercial Vehicles State III Technology Summit Forum. He pointed out that Cummins' success in the North American market serves as a strong reminder for Chinese commercial vehicle manufacturers: choosing the right technical route around the National III standard is crucial.
In the various approaches adopted for implementing the State III standards, electronically controlled high-pressure common rail technology has dominated the market, with nearly all major domestic heavy truck manufacturers adopting this method. In contrast, EGR (Exhaust Gas Recirculation) technology has been used by only a few companies.
Professor Yang Fuyuan from the Institute of Automotive Engineering at Tsinghua University noted that the implementation of National III standards based on European regulations has created policy advantages for multinational automotive companies entering the domestic commercial vehicle market. This poses serious challenges to the previously dominant domestic commercial vehicle industry. Under the "Sickle" effect of the State III standards, there's no third way—only survival or extinction. The transition from National II to National III isn't just a shift from mechanical to electronic engines; it involves a comprehensive upgrade of key technologies, including fuel injection systems, electrical systems, intake and exhaust systems, and more. In this regard, many major domestic automakers have opted for joint ventures or direct technology imports from foreign partners.
The pressure to meet these new standards has forced the industry to rethink its strategies, invest heavily in research and development, and collaborate globally to stay competitive. As the commercial vehicle market continues to evolve, the need for innovation, adaptability, and strategic foresight has never been greater.