Three major factors restricting the development of domestic generator sets

In the past decade, the development level of China's generator set industry has been significantly improved, and the huge market demand has prompted the local enterprises to gain a foothold and develop in the domestic market. Haixing believes that after a decade of rapid development, the domestic generator set market also faces some development resistance, mainly reflected in the following three aspects:

the growth rate of China's infrastructure investment and high-energy-consuming manufacturing slowed down. The engineering projects under the 4 trillion yuan investment led by the government have been basically completed and put into operation. Some projects have not achieved good efficiency after completion, which has a resistance to the introduction of future economic stimulus policies. On the other hand, in order to reduce pollution emissions and improve industrial production energy efficiency, a large number of small and medium-sized manufacturing plants, especially enterprises in high-energy-consuming industries, face the possibility of being closed. These companies are important users of generator sets in China during the many power shortages.

Secondly, the domestic market is fierce in competition and high product homogeneity. There are more than 200 companies with sales of over 10 million yuan alone. Most of the engines used by these companies called OEMs are provided by Chongqing Cummins, Volvo, Mitsubishi Heavy Industries and other companies, and the generators are supplied by brands such as Lilysenma and Marathon. In the mid- and low-end terminal application market, domestic engine brands will also be adopted, such as Shangchai, Jichai, Changchai, etc. In the past market stage, Chinese local enterprises generally only paid attention to the development and expansion of sales channels for customers, and few enterprises would pay attention to the customization of customer application needs and the maintenance of after-sales service. Because the latter requires a lot of investment and cannot bring benefits to the company in the short term.

Since brands such as Cummins, Caterpillar, Kohler, etc. have transferred production and manufacturing to China, some foreign-funded companies also use China as the Asia-Pacific region and even production base to reduce costs and competition from domestic companies. This undoubtedly reduces the overall profit margin level of the industry.

Haixing believes that if domestic generator set companies want to further develop, they should comprehensively consider the above three resistance points, examine their own advantages and disadvantages based on the market, and enhance their core competitiveness. Only in this way can domestic generator set companies have a better tomorrow!