Cummins Recorded a Business Revenue of 3.9 Billion USD in Q2
2020-09-03 Source：www.chinabuses.org
Summarize：According to Cummins, it recorded a business revenue of 3 9 billion USD in the second quarter in 2020, down by 38% year on year “Our overall business is expected to shrink by 10%-20% for the whole year
According to Cummins, it recorded a business revenue of 3.9 billion USD in the second quarter in 2020, down by 38% year on year. “Our overall business is expected to shrink by 10%-20% for the whole year. However, we reached a new record high in the second quarter in China”, said Nathan Stoner, vice-president of Cummins. Despite the COVID-19 pandemic, Cummins is confident in Chinese market for its strong resilience and believes that China will continue to play a more significant role in the global market.
Due to the COVID-19 pandemic, Cummins’ sales revenue in North America plummeted by 48% in the second quarter this year. Still, the engine-maker made profits largely due to a strong rebound in China and its high level of localization.
Currently, Cummins has already established 16 joint ventures in China with six involved in manufacturing engines. Holding half of shares of all its joint ventures, it has been working relentlessly in recent years to develop engines with National VI Emission Standards. Changing the mode of importing advanced technologies in the past, it has made more innovations in China and has started exporting locally-developed products abroad.
“Cummins will continue to diversify its supply chain to safeguard its stability and security. Moreover, more investments and efforts will be made to support our localization. In January this year, Cummins East Asia R&D Center started construction in Wuhan. With an original invesment of 100 million USD dollars, we are going to add another investment of 150 million USD dollars. The new center is scheduled to start operation by the end of 2021”, revealed Mr. Stoner.
He adds that China was and is a key market for Cummins and will continue to play such a role in the future. “The increasing stringent emission standards in China and the fast growing demand for clean energy such as hydrogen are constantly pushing us to make technological breakthroughs. In the years to come, we will focus on developing fuel cells and natural gas powered engines for Chinese market and the rest of the world”, said Mr. Stoner.
By acquiring Brammo, EDI and Johnson Matthey (JM), Cummins has greatly strengthened its overall competitiveness in the vehicle-used battery area. Through acquiring Hydrogenics, making investments in LOOP and establishing a joint venture with NPROXX, the engine maker aims to speed up its development process of fuel cells and hydrogen-related technologies. Such moves above fully demonstrate the company's determination to make its own mark in the emerging new energy sector.
With intensified competition in the global market, Cummins will take a host of measures to cut its production costs, improve the overall profitability of its products, digitize its products to suit global customers’ growing demand.
Apart from above, Cummins aims to increase its market share in China’s light truck, light commercial vehicle and heavy-duty truck markets. While increasing the sales of its more environmentally friendly engines, it will continue to boost the sales of its key parts for engines and its export revenue in China.
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