The idle capacity of diesel engine country IV depends on the state's enforcement

The National IV standard for light-duty diesel vehicles that was scheduled to be implemented on July 1 has been postponed again. The current new production capacity of domestic passenger car diesel engine manufacturers has basically been the National IV standard, and the National IV product that was driven out of the national standard has faced a situation of insufficient demand due to relatively high prices. At present, there are voices in the industry and we hope to jointly promote the implementation of the National IV standard.

The fourth national standard for light diesel vehicles was promulgated in 2005. At that time, starting from July 1, 2011, all manufactured and sold light vehicle pollutants must comply with the requirements of the National IV standard. Since then, the National IV vehicle fuel standard has not yet been introduced, and it is still not possible to ensure that the corresponding vehicle fuel is supplied nationwide. It has been decided to postpone the implementation of the National IV standard until July 1, 2013.

But now that July is about to pass, the national standard for light-duty diesel cars will be once again cool. In response, an analyst with brokerage, who declined to be named, told reporters that the main reason for the delay in standards is still the quality of domestic oil products. At present, most of the domestic A-share market diesel engines are produced by the vehicle factory for their own use, but there are also a few companies' major production capacity for sale to other automakers. The response of manufacturers to the postponement of the National IV standard is not the same.

A diesel listed company near the west revealed that the company has invested more than RMB 1 billion in an expansion project. The main production capacity is the national standard passenger car diesel engine. A company official said that because the country’s fourth product is more expensive than the country’s three standards, if there is no national mandatory standard, it is probably more difficult to promote. At present, most of the production capacity is idle. “At present, there is already a voice in the industry that hopes to unite and promote the implementation of the National IV standard as soon as possible. This is a matter that needs to be actively promoted for passenger car light diesel engine manufacturers.”

In fact, many diesel listed companies have been aiming for the National IV standard to build capacity and technology ahead of schedule. Among them, the Shangchai Co., Ltd. raised investment projects in 2011 include medium and light diesel engines, development and manufacturing of diesel engines. According to the reporter, these projects are all four national standard products.

However, the light diesel engine products of the Shangchai Co., Ltd. fund-raising project are inconsistent with the four-country standard passenger car diesel engine of the listed company, and are mainly used in commercial vehicles such as light trucks and light passenger vehicles. Wang Hongbin, director of Shangchai’s shareholding company, told the reporter: “We feel that the delay in the implementation of the National IV standard is not very great, because the company is also developing a series of other products at the same time. We will launch corresponding products according to market demand.”

The aforementioned analysts believe that although the National IV standard for light-duty diesel vehicles has been postponed, most of the products on the market have already reached the National IV standard due to the stricter emission management of light passenger products. Therefore, the delay of the standard has little effect on the production of commercial light diesel engines. On the other hand, the trend of increasing market share of diesel vehicles in the future will not change because of the implementation of the standard. According to the long-term trend of energy conservation and environmental protection, the substitution effect of diesel engines is more obvious.

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