China has fully implemented the National 3 emission standards this year, marking a significant step in the country’s environmental policy. For new products, the National 3 standard models have been a challenge for diesel engine manufacturers since 2007. However, after years of preparation, major companies such as Yuchai, Weichai, Xichai, Dichai, Chaochai, and Dongfeng Cummins have successfully launched their third-generation diesel engines. This transition from conceptual development to practical application represents a major technological milestone.
Heavy-duty diesel engines have not posed a major issue in meeting the National 3 standards. However, it is worth noting that some small and medium-sized diesel engine manufacturers have also begun adopting these standards. This indicates that they are not only targeting light trucks and passenger vehicles but also preparing for future emission upgrades. This move marks another breakthrough for the industry, following the shift to multi-cylinder engines. The expansion of the National 3 standard to smaller engines, however, could increase costs in an already expensive sector.
Yuchai has partnered with AVL to develop the National 3 standard diesel engine. The company has successfully developed the YZ4DB1-30 and YZ4DA1-30 engines using electronically controlled unit pump technology, which have passed the National 3 certification. These engines have even entered the passenger car market. Quanchai, a key supplier to Beijing Foton, FAW Hongta, and JAC, has collaborated with Bosch and the Shanghai Internal Combustion Engine Research Institute to develop the 4D22E, 4D37E, and 3-series small-bore diesel engines, supporting a wide range of light commercial vehicles.
Changchai's 300,000-unit multi-cylinder engine base project (Phase 1) was completed on December 28, 2007. It focuses on producing 3- and 4-cylinder diesel engines. The first phase of the project involved a total investment of 160 million yuan, aiming to significantly improve product quality. The 4B28TC common-rail engine, developed with technical input from Austrian company AVL and using Bosch’s common rail system, is now in production.
Light commercial vehicles remain the most challenging sector in implementing the National 3 standards. According to Ni Hongjie, chairman of the China National Internal Combustion Engine Industry Association, two major issues hinder implementation: fuel supply and cost. Many small and medium cities struggle to provide sufficient high-quality diesel fuel, which affects engine performance and longevity. Additionally, the cost of electronic injection systems—whether common rail or unit pump—has increased significantly. While this is manageable for heavy-duty vehicles, it poses a problem for light-duty vehicles. A common rail system from Bosch can cost between 6,000 to 8,000 yuan, which may double the engine cost. Given that light vehicles are sold for only 3,000 to 4,000 yuan, this increase is not feasible for manufacturers.
Domestic manufacturers are also working on developing their own common rail systems, but no mass production has been achieved yet. Meanwhile, lower-cost fuel injection solutions are under development. Although there are still several months before the full implementation of National 3 standards for light vehicles, the cost challenges remain a significant obstacle.
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