Against the policy background of active state support for the automotive industry and the basic national policy of energy saving and emission reduction, the turbocharger industry faces a rare opportunity for development. Three favorable factors will strongly drive the development of the turbocharging industry in China.
1. The National Development and Reform Commission recently issued the Catalog for Guiding Industrial Restructuring, in which turbocharger products and projects are listed in the encouraged category. In the draft Development Goals and Plan for China's Internal Combustion Engine Industry in the 12th Five-Year Plan Period, turbocharging is listed as a key technology for the vehicle engine industry, and the turbocharger is listed as a key automotive component for development during the period. Industrial policy clearly favors turbocharger products and projects.
2. According to statistics from the China Association of Automobile Manufacturers and the Ministry of Industry and Information Technology, China's vehicle output has grown rapidly over the past eleven years, from 2.0690 million units in 2000 to 18.2647 million units in 2010, a compound annual growth rate of 24.33%. According to statistics from the National Bureau of Statistics and the China Automotive Industry Information Network, the number of civilian vehicles in use in China rose from 16.0892 million in 2000 to 62.8061 million in 2009, with annual growth of between 12% and 23%. At the same time, the rapid growth of China's economy has driven fast development in segments such as construction machinery, agricultural machinery, electric power and shipping. Steady growth in these fields underpins rising market demand for internal combustion engines. From the standpoint of efficient energy use, the turbocharger, with its more efficient energy conversion, has gradually become the key component at the heart of the efficient internal combustion engine. With the rapid development of engines, turbochargers will inevitably see substantial growth as well.
3. Facing increasingly severe environmental and energy pressure, China has made energy saving and emission reduction a basic national policy. On November 25, 2009, an executive meeting of the State Council set the action target for controlling greenhouse gas emissions: by 2020, China's CO2 emissions per unit of GDP are to be 40%–45% lower than in 2005, with corresponding policy measures and actions. Although new energy sources are being actively sought that could fundamentally save resources and achieve zero emissions, the current consensus in the industry is that for a considerable time the petroleum-fueled internal combustion engine will remain the main prime mover. Because a turbocharger raises engine power, lowers fuel consumption and reduces emissions, turbocharging is now recognized as the most effective technical measure for cutting the fuel consumption and exhaust emissions of internal combustion engines. The basic national policy of energy saving and emission reduction will therefore promote the use of turbochargers and raise their fitment rate on engines.
Kangyue Technology, one of the main Chinese turbocharger manufacturers, has for many years followed a service philosophy of "customer first, rapid response". With flexible product customization and fast delivery, it has performed well in product planning and development, production, logistics and after-sales service, and has secured a firm place in the turbocharger industry.
The national 12th Five-Year Plan explicitly sets energy saving and emission reduction as a goal and steps up the restructuring and consolidation of industry. This will be a strong encouragement to capable Chinese turbocharger manufacturers such as Kangyue Technology. In addition, the launch of a new round of national economic stimulus will directly boost market demand for heavy trucks, construction machinery, agricultural machinery and other equipment, which in turn will drive the turbocharger industry. China's turbocharger industry is about to see another good opportunity for development.
