Cummins Inc., the world's largest independent engine manufacturer, has increasingly relied on emerging markets such as China. To this end, the company plans to strive to extend its product line from the mid-to-high end market in the future. This is the confidence of Cummins Inc. Vice President and Chairman of China Cummins China Co., Ltd. Hua Jinsheng, who was interviewed by Shanghai Securities News on the 14th.
Hua Jinsheng said that during the period from 2002 to 2007, Cummins’ sales revenue in China increased by more than four times, and profits increased even more. This is not easy, because Cummins has made six or seven investment projects in China in the past five years. There are joint ventures with Shaanxi Auto and Foton. Although Xi'an Cummins has been profitable, the joint venture project of 2.7 billion yuan with Foton currently has no profit. Affected the overall increase in profits.
From the perspective of product structure, Hua Jinsheng said that the company's product structure is still focused on high-end. But overall, Cummins's market share in China is still relatively small, mainly concentrated in the high-end market. In 2007, the output of commercial diesel engines in China was around 2.3 million units, and Cummins produced and sold 180,000 units in China, which was less than 10%.
Hua Jinsheng said, “I think there are three kinds of product structure. The first is imported technology and foreign production. The second is imported technology and local production. The third is local technology and local production. For Cummins, we mainly participate in The first and second. Our specific products include the production of engines, turbochargers, filters, exhaust systems, fuel systems, alternators and generator sets, etc."
“Compared with other multinational companies, we have advantages in the localization of engines and components. We must also strive to expand from the mid-to-high end market in the next step.†Hua Jinsheng said, “From the perspective of market share, market share in different industries Different, such as a higher share in the mining field, and a 1% in the shipbuilding industry, our goal is first and second place in each market, if not, we do not want to participate in this market. The speed is higher than the sales growth rate."
In the first half of the year, due to the push of several emerging markets represented by China, Cummins achieved record highs in the first half of the year, and the rapid growth in the international market effectively offset the impact of the weak North American market. In the first half of the year, net sales were 7.361 billion. The US dollar rose 19.5% year-on-year, and net income was 483 million US dollars, up 35.3% year-on-year. Emerging markets represented by China, India, Brazil and Brazil are increasingly emphasizing Cummins global business. “One in three worlds has oneâ€, accounting for more than 30%. The annual sales increase is expected to reach 15%.
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