In 2007, China's automotive industry continued to experience robust growth in both production and sales. The total vehicle production reached 8,882,200 units, marking a year-on-year increase of 22.02%. This represented a net gain of 1,602,700 units compared to the previous year. Similarly, vehicle sales amounted to 8,791,500 units, reflecting a 21.84% rise from the prior year, with a net increase of 1,570,600 units. Alongside this surge in整车 (complete vehicle) production and sales, the automotive engine sector also saw significant growth. According to the latest data from the China Automobile Industry Association, 54 domestic engine manufacturers reported cumulative production of 784.67 million engine units in 2007, up by 25.13% compared to 2006. Sales totaled 7.2238 million units, rising by 24.4% over the previous year. Notably, the growth in engine production and sales exceeded 1.5 million units each year for two consecutive years, highlighting the sustained momentum in the domestic engine market as the auto industry expanded rapidly. The scale of individual engine production grew significantly in 2007, with 78% of the industry reporting increased output compared to the previous year. Several companies saw their production volumes surpass key thresholds: the number of firms producing over 100,000 units rose from 22 to 27, those producing more than 200,000 units increased from 13 to 18, and the count of companies with over 300,000 units went from 7 to 9. Additionally, four companies produced over 400,000 units, with Guangxi Yuchai exceeding 500,000 units. By the end of 2007, the top 15 engine producers included Guangxi Yuchai (506,855 units), Liuzhou Wuling (490,880 units), FAW-Volkswagen (488,282 units), Changan Group (470,063 units), Shanghai Volkswagen (357,504 units), GAC Toyota (346,026 units), Chery (335,744 units), FAW Group (306,746 units), Dongan (301,391 units), Dongfeng Honda (290,652 units), Shanghai GM (260,395 units), Beijing Hyundai (251,288 units), FAW Toyota (236,442 units), Dongan Power (234,503 units), and Kunming Yunnei (224,356 units). Among these, GAC Toyota saw the largest increase in production, growing by 190,000 units or 123%, followed by Dongan (up 150,000 units, +95%) and Guangxi Yuchai (up 150,000 units, +42%). Sales figures mirrored the production trends, with Guangxi Yuchai leading at 504,104 units, followed closely by Changan Group (467,872), Liuzhou Wuling (457,806), FAW-Volkswagen (456,775), and Shanghai Volkswagen (352,125). GAC Toyota experienced the highest sales growth, increasing by 196,000 units (a 128% jump), while Guangxi Yuchai and Dongan Automobile also saw strong gains. Despite the expansion of smaller engine producers, the industry’s overall production concentration remained stable. The top five engine producers accounted for 29.5% of total output, slightly down from 29.56% in 2006. The top ten companies captured 49.6% of the market, compared to 46.5% the previous year. Gasoline engine production continued its upward trend in 2007, reaching 5.85 million units—a 23.24% increase from 4.72 million in 2006. The top five gasoline engine producers were Liuzhou Wuling (490,880), Changan (470,063), FAW Group (465,954), Shanghai Volkswagen (357,504), and GAC Toyota (346,026). Together, they accounted for 36.6% of the total industry output. Sales of gasoline engines totaled 5.71 million units, up 22.12% from 4.766 million in 2006. The top five companies sold 2.065 million units, representing 35.5% of total sales. Diesel engine production surged by 31% in 2007, reaching 2.03 million units from 1.55 million in 2006. Guangxi Yuchai led with 506,855 units, followed by FAW Group (301,495), Kunming Yunnei (224,356), Weichai (177,189), and Dongfeng Chaochai (143,432). These top five companies accounted for 67% of total diesel engine output, indicating a highly concentrated market. Sales of diesel engines totaled 2.01 million units, up 31.4% from 1.53 million in 2006, with Guangxi Yuchai again topping the list. While the diesel engine industry thrived, the development of diesel passenger cars faced constraints due to stricter emission regulations and limited consumer demand. In 2007, only 45,000 diesel passenger cars were produced, compared to 2.013 million diesel commercial vehicles. Diesel vehicles made up just 23.16% of total production, with diesel passenger cars accounting for a mere 0.5%—a slight decline from the previous year.

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