In 2007, China's automotive industry continued to show strong momentum in both production and sales. The total vehicle production reached 8,882,200 units, reflecting a year-on-year increase of 22.02%, with a net gain of 1,602,700 units compared to the previous year. Sales also rose significantly, reaching 8,791,500 vehicles, an increase of 21.84% year-over-year, adding 1,570,600 units compared to 2006. This growth was mirrored in the engine sector, where both production and sales saw robust increases. 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 the previous year. Sales totaled 7.2238 million units, rising by 24.4%. Notably, engine production and sales increased by over 1.5 million units in both 2007 and 2006 compared to the prior years, highlighting a consistent upward trend in the industry. The scale of engine production expanded further in 2007, with 78% of the industry reporting higher output than the previous year. Several companies surpassed key production 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 companies producing over 300,000 units grew from 7 to 9. Guangxi Yuchai, for example, exceeded 500,000 units in output. At 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), and others. Among these, GAC Toyota saw the largest increase in production, rising by 190,000 units or 123%, followed by Dongan Automobile, which added 150,000 units, or 95%. In terms of sales, Guangxi Yuchai led with 504,104 units, followed closely by Changan Group (467,872 units) and Liuzhou Wuling (457,806 units). GAC Toyota again showed significant growth, increasing sales by 196,000 units or 128%. Despite the expansion of smaller engine manufacturers, the industry’s production concentration remained stable. The top five engine producers accounted for 29.5% of total output, while the top ten held 49.6%, slightly up from the previous year. Gasoline engine production and sales continued to grow in 2007. The industry produced 5.85 million gasoline engines, up 23.24% from 4.72 million in 2006. The top five producers—Liuzhou Wuling, Changan, FAW Group, Shanghai Volkswagen, and GAC Toyota—accounted for 36.6% of the total. Sales of gasoline engines reached 5.71 million units, up 22.12% from the previous year. Additionally, the power output of gasoline engines increased by 31.4%, outpacing the growth in volume by 8 percentage points. Diesel engine production surged by over 30% in 2007, reaching 2.03 million units, up from 1.55 million in 2006. This growth was driven by the commercial vehicle market, particularly heavy and medium-duty trucks and buses. Guangxi Yuchai led diesel production with 506,855 units, followed by FAW Group and Kunming Yunnei. The top five diesel producers accounted for 67% of total output, indicating a highly concentrated market. Sales of diesel engines also rose by 31.4%, reaching 2.01 million units. The top five sellers—Guangxi Yuchai, FAW Group, Kunming Yunnei, Weichai Holdings, and Dongfeng Chaochai—accounted for 66.7% of total sales. The power output of diesel engines increased by 44%, significantly outpacing the growth in volume by 13 percentage points. However, the development of diesel passenger cars faced challenges due to emission regulations and limited market demand. In 2007, only 45,000 diesel passenger cars were produced, compared to 2.013 million diesel commercial vehicles. Diesel passenger cars made up just 0.5% of total vehicle production, down from 0.57% in 2006. Despite this, diesel engines remained dominant in commercial and heavy-duty segments, underscoring their critical role in China’s transportation sector.

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