At present, there is no standardized collaboration model between domestic diesel engine manufacturers and vehicle producers in China. Industry experts point out that the current diversity of cooperation models stems from historical development and will continue to evolve alongside the growth of China's automotive industry.
During the planned economy era, auto plants and engine factories had clearly defined roles, with all support issues addressed by the state. At that time, internal combustion engine companies primarily supplied engines for agricultural vehicles. However, as China transitioned from a planned to a market economy, many central enterprises were transferred to local governments, and state support diminished. This led to industry consolidation, such as Dachai and Xichai joining FAW, and Chaochai becoming part of Dongfeng. Meanwhile, some companies like Weichai, Yuchai, and Shangchai continued to develop independently.
In today’s market-driven environment, the collaboration models between engine and vehicle companies have become more varied. Some engine manufacturers, such as Yuchai, Yangchai, Yunnei, and Changchai, still operate as independent suppliers for light vehicles. Chaochai is now a subsidiary of Dongfeng Motor Corporation, while Xichai is a branch of FAW Group. Dashicha, once a sister company of Xichai, has taken on a new identity as a joint venture between FAW and DEUTZ. Similarly, Dongfeng Cummins, Xi'an Cummins, and Chongqing Cummins are all joint ventures between Cummins Inc. and Chinese partners.
Weichai stands out as a unique case, often regarded as a difficult-to-replicate model. It has successfully established control over certain automakers. Ni Hongjie, chairman of the China National Internal Combustion Engine Industry Association, believes that the development of internal combustion engine companies is an ongoing process. He states: “Globally, whether it’s a commercial or passenger vehicle manufacturer, large automakers tend to want their own engine factories. With increasing competition in both domestic and international markets, the reorganization of Chinese companies’ assets will accelerate. This trend benefits both the country and individual enterprises. As an association, we encourage and support this direction.â€
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