China Engine to Introduce New ATV Engines Next Year

Taiwan's China Engine Corp. (CEC) recently announced that it was developing a series of all-terrain vehicle (ATV) and pan-utility gasoline engines with displacements of 400cc to 700cc. The first of the new engines, scheduled for mass production late next year, will be the largest ATV engine produced on the island.

CEC president David Lin noted at the time of the formal announcement that the growing worldwide recreational industry has led to rising demand for recreational vehicles, including ATVs, and that this, in turn, has attracted more manufacturers to enter the engine business.

Taiwan has become one of the world's most important production bases for ATVs, with numerous small and medium-sized enterprises joining the line and procuring their engines and transmissions from other manufacturers. The island currently exports about 300,000 ATVs per year, and the number is continuing to grow as more and more big international brands outsource production to local manufacturers in order to keep costs down.

Lin pointed out that some local makers of powered two-wheelers (PTWs), including Kwang Yang Motor Co. (KYMCO) and Sanyang Industry Co. (SYM), have taken advantage of their engine technology and cost competitiveness to diversify into ATVs. In the past they focused on models no larger than 150cc, for which they enjoyed mature technology; now, however, they are being forced to go for bigger engines by low-price competition in small-engine models coming from mainland China.

Thus the need to find sources of bigger power plants. Lin said that only a few companies in Taiwan, such as KYMCO and SYM, have the ability to produce PTW and ATV engines as large as 300cc.

"Our accumulated expertise and know-how in the development and manufacturing of automotive engines gives CEC as strong technical advantage over most of the world's developers of PTW and ATV engines," Lin stated. "In addition, we've been planning actively to diversify our product line, because the domestic demand for automotive engines is limited. After intensive evaluation, we decided to develop big-displacement engines for ATVs and other recreational vehicles, or even for agricultural machines."

Orders Already In

Orders have already been received from a local ATV exporter for single-cylinder, four-valve engines with displacements of 400cc to 700cc, Lin reported.

In addition to being applied to ATVs, the president went on, the new engines could also be used on go-karts and motorcycles, thus brightening their sales prospects.

Even as it pursues the development of PTW/ATV engines, CEC is not ignoring its core business. It recently unveiled a prototype 2.2L automotive engine in both naturally aspirated and turbo versions, and a local automaker will install it in minivan models next year. Late this year the company plans to begin mass production of a 2.0L automotive engine that was developed on the same platform as the 2.2L model.

CEC has showcased other niche products at major auto-parts shows around the world, including a high-end 250cc go-kart engine that can also be used on other recreational vehicles and agricultural machines.

The engine manufacturer is a joint venture in which major stakes are held by the ROC government, Chiao Tung Bank, and the Yulon Group, Taiwan's biggest automaker, which turns out Nissan and Mitsubishi models on the island. CEC was set up in mid-1995, using technology developed by the Industrial Technology Research Institute, as part of a government program designed to boost the development of home-grown automotive products.

The first product from the CEC line was a 1,200cc eight-valve automotive engine, which is currently used by the China Motor Corp. (part of the Yulon Group and a producer of Mitsubishi models) in its Verica and Veryca mini commercial vehicles. The engine will also soon be used in a commercial vehicle to be produced by South East Motor Corp., a China Motor venture in mainland China.

The engine maker's second product is a modularized engine platform that can be manufactured with displacements of 1,300cc to 1,600cc. CEC is now looking for customers for the new engine, both at home and overseas.