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With the approach of the Beijing 2008 Olympic Games, China is moving closer to fully implementing Euro III emission standards. Beijing has already taken the lead by enforcing these regulations ahead of schedule. The introduction of Euro III has pushed trucks and buses to shift away from traditional mechanical diesel engines toward electronically controlled ones. This major technological transformation not only opens up new business opportunities but also reshapes the competitive landscape of the industry.
As a result, companies across the diesel engine supply chain are closely monitoring advancements in electronic control technology and market trends. The concept of "Green Diesel" is now capturing the attention of industry players, offering promising "green business opportunities."
Recently, Dongfeng Cummins announced that its ISBe and ISLe Euro III diesel engines have secured multiple supply agreements with leading vehicle manufacturers such as Yutong, Xiamen Jinlong, Yaxing Mercedes, and Dandong Huanghai. These engines are being used in 1,000 vehicles operating on bus and tourist routes in cities like Beijing, Shenzhen, and Hangzhou, marking the beginning of large-scale practical applications of domestic Euro III diesel engines.
Dongfeng Cummins is set to launch an advanced production line in June, capable of manufacturing electronically controlled diesel engines that meet both Euro III and Euro IV emission standards. In the electronics-controlled engine market, the company has taken a leading position, leveraging the expertise of its parent company, Cummins.
Cummins, one of the world’s largest independent diesel engine manufacturers, was among the first multinational companies to introduce electronically controlled diesel engines in China. In 2000, it joined forces with other global firms like Bosch to launch the “Green Diesel Project,†promoting clean diesel technology based on electronic control and fuel injection systems.
By 2005, Cummins had already sold over 5,000 Euro III engines in China, capturing an 80% market share. Major manufacturers such as Jinlong, Yutong, Huanghai, and Ankai have adopted Cummins’ Euro III engines to provide clean, efficient, and quiet transportation solutions for cities like Beijing, Shenzhen, and scenic spots like Jiuzhaigou.
As Euro III becomes more widely adopted, the market for electronically controlled diesel engines will expand beyond tourist areas and megacities, allowing manufacturers to reduce costs and improve efficiency. The ISBe and ISLe engines from Dongfeng Cummins cover power outputs from 185 hp to 350 hp, meeting Euro III and Euro IV standards, as well as U.S. Phase II and III non-road emissions standards. They are technologically aligned with European and American markets and are locally produced, significantly lowering costs and improving delivery speed and service support.
This localization strategy has enabled Dongfeng Cummins to boost its installed capacity rapidly. The Euro III engine features an advanced self-developed electronic control platform, enhancing product technical value and aligning with international standards. It includes a high-pressure fuel injection system, which improves fuel efficiency and provides real-time information through in-cab displays and diagnostic tools.
The engine offers numerous advantages: compact design, lightweight, improved under-hood space, reduced noise and vibration, enhanced ride comfort, better performance, lower emissions, fuel consumption, and fewer maintenance requirements. Routine maintenance mainly involves oil changes and air filter replacements.
Compared to mechanical engines, electronically controlled engines offer better emission control and manageability, thanks to the integration of a chipset-based control system. This allows for a qualitative leap in vehicle performance, earning them the nickname “smart engines.†Features like engine self-protection, cruise control, and road speed control enhance the driving experience for both drivers and passengers.
For vehicle manufacturers, the shift to electronic control platforms is becoming increasingly important. As emission standards rise, mechanical engines require significant investment to meet requirements, while electronically controlled engines allow for easier upgrades and better long-term cost control. Dongfeng Cummins has adopted a “Complete Vehicle Solutions†marketing strategy, ensuring that its designs support future transitions to Euro IV and even Euro V standards, protecting the investments of vehicle manufacturers.
Although full implementation of Euro III is still two years away, competition around this standard has already begun in certain cities. Industry analysts believe that early preparation gives companies more time to develop mature vehicle matching solutions and gain a competitive edge in the Euro III electronic control market.
October 02, 2025