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On July 25, Fast announced that it will form a joint venture with Eaton to jointly develop, manufacture and sell commercial vehicle clutches and related components. Fast is the largest heavy-duty transmission company in China. Eaton is a company with a high market share in the North American clutch market. How will the two companies join forces to affect the commercial vehicle clutch market in China?
From the perspective of investment scale, the joint venture company is still cautious in the first half of the year, because the investment amount of the two parties is only 100 million yuan. However, Li Dakai, chairman of the Fast Group, said: "As long as the market needs, both parties will continue to increase capital investment."
Industry experts believe that if the joint venture company can better integrate the advantages of both parties and make a difference in China's mid-to-high end commercial vehicle clutch market, it may have a certain impact on the leading clutch companies in Changchun East and Hubei Sanhuan, and thus incitement. China's commercial vehicle clutch market has a stable competitive landscape for many years.
Clutch market structure is stable "In the first half of 2014, the development of China's commercial vehicle clutch industry was in line with the declining development of the commercial vehicle industry." Guo Jie, Secretary General of the clutch committee of China Automobile Industry Association, said in an interview with this reporter. In the first half of 2014, the production and sales of commercial vehicles were 2,074,900 units and 2,049,700 units, down 0.59% and 3.18% year-on-year. Affected by this, the corresponding clutch sales also fell by 3% year-on-year. In particular, sales fell sharply in June.
Guo Jie said that for the second half of the market trend of China's commercial vehicle clutch, the key to see the impact of the four national emissions regulations and commercial vehicle market performance. Commercial vehicles are mostly used in logistics and town development, and the market demand is relatively stable. If the escalation of emission regulations fluctuates, there will not be much fluctuation in the commercial vehicle clutch market in the second half of the year.
In the first half of the year, the market structure of commercial vehicle clutch companies in China is basically the same as last year, but all companies are facing the pressure of industrial restructuring and transformation and upgrading. It is worth noting that this year, Changchun East expanded the production capacity of its heavy-duty truck clutches, with an annual output of 400,000 units.
Eaton's "Abacus"
At present, domestic commercial vehicles still employ a large number of manual transmissions. Because of the high cost of automatic transmissions, most users are generally difficult to accept. In the past few years, Eaton clutch has been taking the high-end route in China, supporting high-end transmissions, and the market is difficult to pick up. Therefore, Eaton’s investment has changed its product strategy.
Da Wenkai, president of Eaton Vehicle Group, said that the joint venture will produce diaphragm spring clutches for the Chinese manual transmission market. Initially, the 395-mm push-type clutch and 430-mm pull-type clutch specially designed by Eaton for the Chinese market will be introduced. After that, more clutch products suitable for the future Chinese market will be developed.
Dai Wenkai said: "The technology that is suitable for the Chinese clutch market is the best. The joint venture company will provide technology suitable for the Chinese clutch market, and at the same time it will consider factors such as price to effectively combine technology and price."
The cooperation with Fast this time undoubtedly uses the local advantage of Fast to lay the foundation for further opening the Chinese market. Dai Wenkai said: "We are very pleased to cooperate with Fast in the clutch field. We will benefit both parties in the clutch market through strong alliances. Through cooperation with Fast, we can better serve our customers and provide better services. China's clutch market."
Fast extend the industrial chain layout has been <br> <br>, Fast's core business is commercial vehicle transmissions, other related product development has a complete transmission family, which retarder, synchronization, etc. quickly, but There was no clutch product before.
When interviewed by this reporter, Li Dakai said that Eaton has been cooperating with Fast. Eaton’s clutches are among the world’s leading manufacturers of automatic adjustments, materials, life, and reliability. Eaton clutch has a high market share in the United States, and it is also in an absolute advantage in the North American market. The joint venture company is controlled by Fast, accounting for 51% of the share capital. Li Dakai said: "The reason why Eaton let Fast Holdings is because Fast has strong brand competitiveness in the commercial vehicle field, with a relatively complete product line, strong research and development capabilities and service capabilities. Any foreign product can not adapt to local conditions It is difficult for China to achieve great development in China's national conditions. We must use the advantages of both sides and combine strengths to better open the market for clutch products."
Li Dakai said that the Eaton clutch was removed from the Wuxi plant and relocated to the joint venture Xi’an plant, plus 100,000 sets of new production capacity for the new base. At that time, the annual production capacity of the joint venture will reach 200,000 units. In the later period, we need to see the market. In the second period, it is possible to have an annual production capacity of over 500,000 units.
May impact industry leaders <br> <br> Fast Eaton co-production with the clutch, the industry is very concerned about. Guo Jie said that the cooperation between Fast and Eaton is indeed a win-win move. First of all, they can package the clutch and transmission, enhance the matching of the clutch and the transmission, and increase the market competitiveness. Second, it extended the Fast's product line to avoid putting eggs into a basket and enhance the company's ability to withstand market risks. Third, Eaton reorganized China’s clutch business and increased external forces to help open the Chinese market.
Guo Jie believes that the joint venture company's initial focus on the introduction of two clutches are currently the mainstream market sales. Through the sales channel of Fast, the clutch of the joint venture company will make some breakthroughs in the high-end market in China, which will have a certain impact on the independent leading enterprises. If the joint venture between Fast and Eaton goes smoothly, according to the planned production, its influence in the heavy-duty commercial vehicle market will gradually emerge.
August 24, 2021