Interview with Wang Kaijun: Cummins' "Three Axes" in the Transformation Period
On May 16, 2024, during the first Cummins China Customer Day event held in Wuxi, Jiangsu, Wang Kaijun, Vice President of Cummins and General Manager of the Engine Division in China, said, "In a rapidly changing industry, we must adhere to the original intention of 'achieving customers' and continuously create value for customers
The product matrix, digital tools, and service ecosystem are the new "three axes" that Cummins continues to empower customers during the industry transformation period. Meanwhile, facing the three major hotspots in the truck industry: natural gas, export markets, and new energy, Cummins has a clear layout.
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The Three Axes of Transformation Period
Addressing customer pain points
Entering 2024, as the industry transformation intensifies and market competition becomes more intense, what direction is Cummins heading towards?
Cummins China's first Customer Day provides answers.
Wang Kaijun emphasized, "Whether it's new breakthroughs in product matrix, further advancements in digital tools, or new explorations in cross-border service cooperation, Cummins' starting point for continuous innovation is to empower customers throughout their entire lifecycle and help them succeed
Cummins released a new generation of 7.0-liter and 6.2-liter mid size engines that meet the four stage fuel consumption standards, focusing on the keywords "low-carbon and efficient" and "exclusive intelligence". The National VI product matrix is more diverse, meeting customized and exclusive needs; At the same time, through digital innovation, the e-Road Cummins APP has been fully upgraded, making smarter and more efficient services more accessible; Cummins has also reached a strategic cooperation with JD Auto Care, striving to create a more intelligent and efficient commercial vehicle service ecosystem for customers.
Wang Kaijun said in an interview, "The advantages of power chain and supply chain enable Cummins to have stronger power in the traditional energy field, and it is also the key competitiveness of Cummins in the next stage of new energy and digitalization." As a century old enterprise in the internal combustion engine industry, Cummins has achieved completely independent development in core components and control software, including the interconnection of power chain between gearbox and axle, and directly possesses or accurately calculates deep data of internal combustion engine operating conditions.
Wang Kaijun believes that "the accumulation and analysis of a large amount of second level data in the million vehicle level of the current National VI stage allows us to better understand the actual usage scenarios of customers, and even predict possible problems, thereby better helping to solve customer pain points and providing accurate 'insights' for the development of the next generation of products. This is also one of Cummins' competitive advantages in the next stage of low-carbon and intelligent development in the industry, and we will continue to invest in digitalization
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Natural gas+export
Highlights of the industry's downturn period
According to Wang Kaijun's analysis, the truck industry entered a low point in the second half of 2021 after its peak in 2020 and 2021, and slightly recovered in 2023, still at a relatively low level. The entire market may continue to maintain its current state for a period of time.
And in the past two years, the natural gas and export markets have indeed performed outstandingly. Cummins has great potential.
Firstly, the Cummins natural gas models in the National VI phase have increased from 6.7 liters, 12 liters to 15 liters, with a relatively comprehensive product matrix, and there will be new product reserves in the future.
Wang Kaijun said, "The market feedback on existing Cummins natural gas models is very positive, providing more diverse product choices for cooperating OEMs and end customers. In the next step, more efficient Cummins natural gas products will be launched into the market. Compared to the substitution of fuel proportion, I believe there is still a lot of room for improvement in the natural gas market
As for the continued popularity of the Chinese commercial vehicle export market, it is precisely the advantage of Cummins as a global enterprise - Cummins has a layout in major regions around the world, a relatively sound service network, and can provide customized product solutions according to emission regulations and market demands in different regions.
Wang Kaijun stated that in areas with low emission standards, Cummins will increase its efforts to introduce products and support the export of Chinese commercial vehicle OEMs. In areas with leading emission standards, especially in the Euro 6 market, Cummins also has corresponding products that can help Chinese automakers move towards the global high-end.
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Cummins Hydrogen Accelerates Landing
Operated for 12 million kilometers
Faced with the rapid growth of penetration rate of new energy commercial vehicles, Cummins has laid out in the fields of hydrogen fuel internal combustion engines, electrification, and hydrogen fuel cells.
Based on years of research and development of Cummins' multi fuel power chain solutions, Cummins' hydrogen internal combustion engine products are gradually maturing. Wang Kaijun said, "We hope that when regulations are mature and market conditions are met, Cummins hydrogen internal combustion engine products will be launched into the market, helping OEMs, fleets, and users achieve zero emissions
Cummins' electrification and hydrogen fuel cell products are also constantly being launched and implemented in the Chinese market.
Wang Kaijun introduced that in the Lingang area of Shanghai, Cummins hydrogen fuel cell equipped dump trucks and buses have been successfully piloted and operated, with a cumulative mileage of 12 million kilometers by the beginning of this year. The reliability of Cummins' new energy products has been fully verified, laying the foundation for future technological upgrades.
In addition, hybrid systems are also an option in Cummins' zero emission plan, and research and development of P2 structured power, control systems, and hybrid specific engines are currently underway.
Cummins fuel power chain solutions continuously provide cost reduction and efficiency improvement options for Chinese commercial vehicle customers' diverse needs in multiple scenarios. As Chinese commercial vehicles enter the global market, Cummins has closer ties with its Chinese partners. The vibrant Chinese market for new energy commercial vehicles provides Cummins with a fertile ground for the research and application of zero carbon technology.
As Cummins approaches its 50th year of development in China, it will continue to deepen its cultivation, deeply integrate with OEMs, and work together with Chinese customers to create a healthy and win-win commercial vehicle ecosystem industry chain.