Getting into the diesel trade
Uncategorized | AshJune 19, 20072:07 pm
Chinese diesel use still seems very low, at least for small goods vehicles and domestically used vehicles. It seems that Chinese havent developed a love affair yet for at the 1.8 and above turbo diesel motors, especially for those who do the long distance inter city runs. Hopefully this company can start to change it.
DENSO Corp will make diesel engine common rail systems in China by 2009, as more diesel-powered cars are produced in the worlds second-largest auto market.
Denso, 23 percent owned by Toyota Motor Corp, will establish a wholly owned unit named Denso (Changzhou) Fuel Injection System Co Ltd for four billion yen (US$32 million) in Chinas eastern coastal province of Jiangsu.
This marks the companys third factory outside Japan making common rail systems, it said in a statement yesterday. The devices help cut nitrogen oxide and particulate matter in diesel engine emissions.
The company, based in Kariya City, is aiming to catch up to larger rival Robert Bosch GmbH of Germany, which holds about 70 percent of the global market for common rail systems, Bloomberg News said. Denso has about 20 percent of the market, according to Kunihiro Matsumoto, an analyst at UBS AG in Tokyo.
Denso expects the new companys sales will grow to about 18 billion yen by 2012.
Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world’s biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the ‘Website’ link.
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1 Comment so far, why not add your thoughts as well?
- dragin says:June 19, 2007 at 8:57 pm
Fuel has been inexpensive in China. Its also of poor quality because of high sulphur content crude, and outdated refining processes. The sulfur level index of Chinas fuel is much higher than that of developed countries. But reports are that the State Environmental Protection Administration is working on it. Until then the popularity of diesel will lag.