On June 16, Perkins Engine Co., Ltd. held the first Chinese media meeting for its new Perkins industrial power system sales and marketing executive Lei Renuo. Previously, Renault served as the executive general manager of power business at Caterpillar Power Equipment Division. From January 1st this year, he officially joined Perkins.
At this meeting, not only was he making his debut in China, but at the same time, he and several heads of Perkins Asia Pacific also brought a lot of important information about Perkins's Chinese strategy and Perkins. Further strengthen the strategic position of the Wuxi plant.
Wuxi factory is even more important
At this media meeting, Renault announced that the Wuxi plant will become the only production plant for the 1100 series of six-cylinder engines. This shows that the Wuxi plant has become a very important part of the Perkins engine production system. According to Jie Qiu, general manager of sales and marketing in the Asia-Pacific region, the engines produced at Wuxi's factories on the one hand secure the needs of the Asia-Pacific market, and on the other hand they also supply the needs of other Perkins markets.
On November 27, 2008, Perkins Wuxi’s factory held an opening ceremony and announced that Perkins officially established a production base in China. The Wuxi plant became the third overseas factory established by Perkins after the United States and Brazil. Perkins is setting up overseas factories not only to achieve localized production, but also to shorten the distance between enterprises and users. It will also gradually realize differentiated production and produce different types of engines in different factories. For example, the 800 series engine is entirely produced by its joint venture plant with the Shibaura ISM in Japan.
In April 2008, Jim Tewbo, then General Manager of Sales and Marketing of Perkins Industrial Power Systems Market, announced that the Wuxi plant has entered the second stage of development and Perkins will gradually implement the 4.4 litre of the 1100 series. And the 6.6-liter diesel engine is planned.
This time, Renault announced that in October next year, a new four-cylinder production line will be officially put into production to produce the 1104 Series 1104 engine. In October 2011, the 1106 model 6-cylinder engine will also be put into production. In addition, the Wuxi plant will be Perkins' only factory producing a 1100 series six-cylinder engine.
It is understood that the main market for the 1106 model engine is part of Asian countries including China, South America and Africa. At present, the demand for engines in these markets continues to grow.
Perkins believes that in order to enable users to adapt to different emission regulations, the simplest solution is to provide a single engine platform. Because of this, the 1106 series is not just a low-emission standard engine. In 2006, this series of engines has introduced products that meet the U.S. 3/EU IIIA phase.
Service system expanded rapidly
Prior to this, Perkins was most concerned about the export aspects of Chinese companies and could use the international influence of Perkins engines to enhance the export image of Chinese products. However, according to the survey, more than 50% of the main products equipped with Perkins engines are now sold in China. Therefore, expanding service networks in China has become a top priority for Perkins.
Renault said that if there is no perfect agent and service network, Perkins' plan to increase engine production will certainly not be sustainable. Now, they decided to invest more resources and expand their services and support network to ensure that Chinese customers can receive the same quality of service enjoyed by customers in other regions of the world.
Jie Qiu said that with the increase in the number of engine models and products manufactured by Wuxi, and the continuous expansion of Perkins' domestic business, they will be based on actual growth of customers throughout the country during this year and next year. Add 13 agent branch points.
At present, there are three Perkins agents in China, Vega Power, Lixingxing and West. Prior to this, Perkins had an advantage region in China with the Beijing-Shanghai line as its axis, and the inland region had only two provinces, Hunan and Sichuan, with branch distributors.
Jie Qiu said that Perkins has no plans to find new agents in the Chinese region. The newly established branches of agencies are branches bred by the original three agents. Among them, Weijia Power will establish branch offices in Fujian and Guangxi, Lixing Bank will establish branch offices in Shandong and Zhejiang, and West will establish branch offices in Shaanxi and Liaoning.
In 2010, the addition of seven new agent branches was not explained at the media meeting. However, the reporter identified from the slides played at the conference that the seven newly added agent branches will be Heilongjiang, Jilin, Xinjiang, Henan, Hubei, Jiangxi and Shaanxi.
Three markets attack together
In Perkins' global business, products are mainly distributed in three areas: construction machinery, agricultural machinery and electrical equipment. In the development of the Chinese market, Perkins focused on construction machinery and agricultural machinery first, but according to the actual sales situation of the market, power equipment plays an increasingly important position, and the three markets have become the inevitable choice of strategic choice.
Robinson, director of the Shanghai power system for industrial power systems, said that according to their statistics on sales, about 80% of the products sold in the engines produced by the Wuxi plant are sold to the electric equipment field, which makes them Must pay full attention to the field of electrical equipment.
At present, Perkins's highest-powered engine is its 2000 series, and its maximum power can reach 700 kVA, so the electric equipment field they are concerned with is not a traditional large-scale distribution, distribution and application field for power grids or power station facilities. Mainly for similar buildings lighting systems, station electrical equipment and other small and medium-sized motor supporting.
The development of the engineering machinery business is the most successful aspect of Perkins' development in the Chinese field. Its two largest customers, Yuchai Heavy Industry and Shanhe Intelligence, are from the construction machinery industry. Perkins has also been seeking opportunities to cooperate with more construction machinery companies. At present, a construction machinery company in Shanghai has become its third largest customer.
Perkins' exhibition in China can also demonstrate its concern for construction machinery. They only participate in the Beijing BICES Exhibition and the Shanghai BMW Exhibition. In order to open up the agricultural machinery market, Perkins plans to participate in the exhibition of agricultural machinery next year. At present, the pattern of exhibitions in China's agricultural machinery industry is rather special. Except for the National Agricultural Machinery Show, almost every province has its own exhibition. There is no clear plan for how Perkins will choose to participate. However, Jie Qiu said that it is imperative to open up the agricultural machinery market.
As a result of the financial crisis, Perkins' global sales were also affected, and Renault Shore said that they did not lower their expected sales targets. The main measure they are currently adopting is to control costs at all levels. They hope to achieve the set goals with the global economy warming up.
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