On June 22, 2018, Ministry of Ecology and Environment of China releases Limits and Measurement Methods for Emissions from Diesel-fueled Heavy-duty Vehicles (China VI), marking China’s Phase-6 pollutant emission standard for motor vehicles will be enforced soon. Increasingly stringent motor vehicle emission standards also drive rapid development of the vehicle exhaust after-treatment system sector. Take diesel EGR market for example, installations soared from 520,000 units in 2012 to 1.58 million units in 2017 in the Chinese diesel EGR market, and were expected to hit 2.14 million units in 2023, representing a CAGR of 5.2% between 2017 and 2023, as implementation of environmental policies is strengthened and the number of relevant exhaust treatment systems increases.
Under the backdrop of the implementation of National Emission Standards V and the official launch of VI as well as with overall consideration of technologies, costs and availability of associated products, China has primarily adopted European technology roadmap for its own diesel vehicles: SCR for medium and heavy commercial vehicles and EGR+DOC/POC for light commercial vehicles. 683,800 sets of SCR systems for medium and heavy commercial vehicles were installed in 2017, compared with 1.58 million sets of diesel EGR systems for light commercial vehicles.
Different technological routes in the commercial exhaust emission system sector present distinct competitive landscape. In SCR field, local Chinese enterprises gain the upper hand with Wuxi Weifu Lida Catalytic Converter, Wuxi Kailong High Technology and Zhejiang Yinlun Machinery ranking from second to fourth with a market share of 20%, 17% and 11%, respectively, while Cummins (24%) taking the first place and Tenneco (9%) holding the fifth position. Wuxi Weifu Lida Catalytic Converter boasts excellent SCR technical competence with perfect R&D and production capabilities for core components except carriers in the whole industry chains. Cummins provides mature solutions to exhaust after-treatment systems covering engine emission control modules, OBD modules, vehicle urea-injection modules and SCR catalyst modules.
With regard to diesel EGR in China, BorgerWarner, Wuxi Longsheng Technology, Rheinmetall Automotive and Yibin TRD Auto Parts hold the lion’s share, 32%, 30%, 25% and 5% respectively. Wuxi Longsheng Technology provides a full range of products for EGR system including pneumatic and electric EGR valves meeting national emission standards, ECU suitable for off-road diesel engine, industry-leading tube-type and plate-fin EGR cooler, and supplementary pressure, temperature and gas sensors. BorgerWarner is a leader in the industry with a more complete product line for EGR system.
China Commercial Vehicle Exhaust Emission System Industry Report, 2018-2023 focuses on the followings:
- Development background, industry standards and policies, and major technological routes of commercial vehicle exhaust emission system industry;
- Development of SCR system and EGR system industries (system structure, market pattern, market size, and major carmakers supported);
- Development of downstream markets (production and sales of commercial vehicles, including bus and truck, as well as the prediction);
- Nine major SCR system producers, six EGR system producers, and four POC/DOC catalyst producers in China (operation, related product business, latest developments, development in China (mainly foreign companies), and enterprises using relevant products, etc.).