How Do You Say "Prebuy" In Mandarin?
For a number of years in the late 1990s and into the new century, it wasn’t terribly hard to predict when engine sales would rise. Whenever a new emissions standard was set to be implemented, the months prior would see a spike in engine sales as vehicle and equipment manufacturers - and their customers - raced to avoid having to purchase what generally were thought of as more complex and expensive engines.
The latest results reported by China Yuchai International Limited, which through its main operating subsidiary Guangxi Yuchai Machinery Co. Limited (GYMCL) is one of China’s largest diesel engine manufacturers, demonstrates that emissions-driven prebuys are hardly an exclusively North American phenomenon.
China Yuchai said it sold 141,147 engines in the second quarter of this year, a 29% increase from the 109,329 units sold in the same period a year ago This, the company explained, was mainly attributed to an increase in engine sales for agricultural and truck applications. The increase in sales of commercial vehicles was mainly due to the pre-buying of trucks prior to the implementation of the National 4 emissions standards (China 4) that took effect in China July 1.
The total number of diesel engines sold by GYMCL during the first six months of 2013 was 271,891 units compared with 241,026 units in the same period last year. That represents a 12.8% 30,865 units, the company said.