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Diesel Engines' Road in China II

06-03-2008

The China National Petroleum Corporation and China Petroleum & Chemical Corporation are able to produce diesel of US and European standard. However, comparing to European diesel quality, Chinese one is still low. Experts point out in the following reasons.

First, diesel has long been restricted to farm use and the government has so far adopted a low-price protective policy, making high-quality diesel production infeasible. Second, under the current restrictive development policy for diesel engines, particularly diesel vehicles, there is a lack of market demand stimulation. Third, the traditional bias against diesel engines, especially the diesel vehicle, due to lack of correct information.

All these reasons have led to enterprises losing interest in production of diesel, especially high quality diesel. In comparison, China's diesel engine production technology owns more self-developed intellectual property rights than gasoline engine production technology and is close to international levels. The seven major automobile diesel engine producers who account for more than 90 per cent of the domestic market share have many achievements to their credit, such as Yuchai, Weichai, FAW, etc. They are both able to produce business-use diesel engines that meet Euro four Standard.

China urgently needs to attack the following issues to accelerate development and use of the diesel engine vehicle. Firstly, actively promote the diesel engine and the energy saving, eco- friendly and economy features of the diesel-powered vehicles. Secondly, eliminating all the current policies and regulations that restrict development of diesel engine. Study and work out industrial policies and technological for developing diesel engine vehicle. Thirdly, strengthen research, development and application of diesel engine production technology and make it a major component of the national automobile development strategy in medium- and long-term plans. Fourthly, work out and implement financial and tax policy in favour of diesel and diesel engine sedan car production as well as preferential policies for oil enterprises to produce high quality diesel and for consumers to buy diesel engine vehicle. Fifthly, strengthen supervision and management of fuel production and oil quality. Experts believe that as time goes on, diesel engine can share more and more market in China.


Editor:Frederick Wei from Chinabuses.com


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