Yuchai's YC6K Engine: a Sapling in Growth

 

It’s no surprise. In 2016, Y&C Engine saw a year-on-year increase of 55% in sales, 20% higher than the industry average. Liang Heping is “very satisfied” with such increase. Liang said, “More than an increase higher the industry average, what’s more important is that YC6K accounted for more than 50% of the total sales of C&C Trucks, implying that the market status and influence of YC6K is increasing greatly.” According to Liang, YC6K is still not a member of the first tier of heavy truck engines. “To some extent, YC6K’s reputation among end users and its brand influence are not inferior to, or even better than, those engines used in the first-tier heavy trucks.” In the significant year of 2016, Y&C Engine turned losses into gains and demonstrated its core competences with YC6K taking root firmly in the heavy truck industry. “Considering the relatively humble sales of 8,000 engines and the huge investment, I’m quite satisfied that we have reversed losses,” said Liang. In fact, there are some historical reasons for the achievements of 2016. The project of YC6K was started in 2007. On December 18, 2010, the 6K brand was released officially. But later, the heavy truck market fell into a long downturn. Despite the difficult situation, C&C Trucks and Y&C Engine still pressed ahead earnestly. C&C Trucks is strategically positioned to be a high-end brand base of Yuchai machines with YC6K as a representative. From demonstration routes to small-scale applications, the company has undergone the test of markets and users for a long time. At that time, Yuchai’s existing clients were very interested in YC6K but reluctant to try it due to the sluggish market. In those years, the wait-and-see approach was quite common among interested clients. The high-end positioning requires high quality and core competences. Liang Heping mentioned several cases which all demonstrate the high quality of YC6K. For example, with YC6K, C&C Trucks won the championship in three China International Truck Fuel-Saving Competitions, a solid proof of YC6K’s fuel efficiency. Also, C&C Trucks successfully displayed the performance of YC6K in a long journey along the Great Southwestern Slope and a climbing at Tanggula Pass, in demonstration of the security and power of YC6K. In the final of China Truck Racing Championship 2016, C&C Trucks won the championship with its U480 – a truck also equipped with YC6K – fully demonstrating the high powerhouse and large torque of the engine.

 

More than a powerful engine, YC6K also integrates competitive services: labor fees and material fees not charged for the first maintenance; a super long quality guarantee of 360,000km/36 months; thanks to enhanced engine oil and endurable oil filter, an oil drain interval of 60,000km, much longer than the common interval varying between 10,000km and 12,000km. The considerate services and high quality of YC6K have satisfied many users. According to an OEM survey, 85% to 90% of end users of C&C Trucks’ vehicles equipped with YC6K are satisfied with the engine in many aspects such as power, economy and reliability. In mid-October 2016, YC6K was put on the market of Anhui. The first batch of more than 40 engines was purchased by several clients in Lu’an, Anhui. “Those clients work on long-distance transportation. YC6K has a large displacement and generates a large staring torque. In cases like pending for the green traffic light, it responds more quickly than other engines. According to users’ feedback in fuel consumption, YC6K consumes 2 to 3 litters of fuel less than competitors.” According to He Liyun, Director of Yuchai Anhui Office, currently, YC6K is mainly built in 6×4 tractors in JAC trucks, including A5 and K5.

 

The marketing of YC6K in Guangxi was much earlier. In January 2016, Dongfeng Liuzhou Automobile Company started to assembly YC6K into its products. That year, the company manufactured 2,000 YC6K-embeded trucks. “We made adjustments according to the needs. At first, we released the standard model. Later in the second quarter of that year, we released the compound type applicable to stricter conditions. And in the third quarter, we released chemical trucks.” According to Luo Ping, Director of Yuchai Guangxi Office, it’s “quite rare” to sell more than 2,000 trucks of the same model within one year. “Last year, more than 80% of YC6K engines provided for Dongfeng Liuzhou Automobile Company met the China V emissions standard. This year, the rate will be 100%. The 6K engine has totally met the China V emissions standard.” On the other hand, according to Luo Ping, YC6K also satisfies users’ requirements in economy and reliability. “According to users’ feedback, YC6K consumes 1 to 2, or even 4, litters of fuel less than other engines of equal power. The fuel efficiency is more obvious in southwest regions of high gradient. That implies the engine is applicable to complicated road conditions. In reliability, according to Dongfeng Liuzhou Automobile’s survey, so far, there are no complaints from users.” The satisfaction of users always inspires OEMs to take actions. Following the successful application of YC6K in C&C Trucks and Dongfeng Liuzhou Automobile, JAC Motors and Shanxi Dayun Motor started their own YC6K projects in the second half of 2016. JAC Motors released its 6K-equipped heavy trucks in October 2016 and so far has sold 200 sets. Shanxi Dayun Motor has developed sample trucks of N8 and N9. The Y&C Engine’s expanded partnerships have a direct influence over its sales increase in 2016. “Last year, the Yuchai headquarters intervened in due time to market the product to other OEMs. And Dongfeng Liuzhou Automobile was a typical one.” Liang Heping thought the expanded partnerships as a result of comprehensive factors. “Before, we worked hard with C&C Trucks to develop YC6K. Today, it has grown up and others want to buy it.” “Last year, Dongfeng Liuzhou Automobile ordered 2,600 YC6K engines from Y&C Engine. This year, the order will expand to 5,000. As of the first quarter of 2017, as many as 2,000 YC6K engines have been assembled into Dongfeng Liuzhou Automobile’s H7. And JAC Motors plans to order 3,000 YC6K engines this year.” He also mentioned possible purchases by other OEMs including Dongfeng and BeiBen. “I have confidence.” Y&C Engine has already set sales goals for YC6K in the next three years – 12,000 sets in 2017, 20,000 in 2018 and 30,000 in 2019. When it came to the planned increase from 8,000 in 2016 to 30,000 in 2019, Liang Heping said: “The goal is reasonable. I have confidence.” “Whatever the trends and sales of the heavy truck industry are, we will not be affected considerably. Because our growth is definite and doesn’t depend on certain OEMs. Also, judging from the current situation, we are relatively advantageous in the competition. By retaining existing clients and attracting new ones, we will grow further. In addition, we enjoy a high reputation in the market of non-vehicle diesel engines. And YC6K has replaced imported engines in areas like power generation, ships and industries (Kaishan Compressor). According to him, in 2017, the major application of YC6K will be on tractors, especially those used in the long-distance transportation industry. The increasing demands in Anhui and Guangxi have emerged. Currently, YC6K12 is the model available in Anhui. Following the release of fuel consumption reports, YC6K13 came into the market this January. “Later, the 520-horsepower engine YC6K13 will be promoted hard.” According to He Liyun, the 480-horsepower YC6K is under fuel consumption check for JAC Motors’ new truck K7. “So, our product structure will change after May. And this year is set to be a year of harvest for the use of YC6K in JAC Motors.” According to Luo Ping, the promotion of the 480-horsepower YC6K12 model started in February and the 520-horsepower YC6K13 model will be promoted in the second quarter of this year and sample trucks are under adaptation. “Following the improvement of roads and the development of high-speed logistics, a large-horsepower trend is taking shape in the market. In southwest China, the demand for large horsepower is particular huge. And Guangxi has already seen users longing for 520-horsepower engines,” said Luo.