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Yuchai Multiple Industries Participate in Competition to Seek New Heights

Yuchai Group, China's largest diesel engine manufacturer, has been actively expanding its operations in recent years. The company is not only competing in domestic and international markets but also striving to reach new levels of growth and innovation. In the first half of this year, Yuchai achieved a balanced and steady increase in performance. Total tax-inclusive sales revenue reached 8.908 billion yuan, representing a 19.01% year-on-year increase. Sales of engine blocks exceeded 260,000 units, rising by 32.59%. Construction machinery sales grew by 33.44%, while special-purpose vehicle sales jumped by 107.28%. Auto parts sales increased by 21.11%, and lubricants and chemicals sales rose by 11.48%. According to Yu Ping, Chairman of Yuchai Group, the company aims to "rebuild Yuchai" within three years. By 2008, the group targets a sales revenue of 20 billion yuan, with a goal of reaching 35 billion yuan by 2010. Within five years, Yuchai plans to have exports account for 30% of annual sales, aiming to achieve global brand recognition, product internationalization, and production bases across the world. In the traditional engine segment, Yuchai has focused on "Green Development, Harmony and Win-Win," leading technological advancements in automotive power systems. It pioneered electronically controlled combination pumps, introduced after-sales diagnostic equipment, and led in self-calibration and SCR technology for heavy-duty engines. Its breakthroughs in low-emission and energy-saving technologies have allowed products to meet emission standards ahead of schedule. Yuchai also launched the first Chinese-owned European-standard 4-engine and developed advanced superchargers for the YC6G model. As a result, it has become the world's largest supplier of urban LPG engines. Innovation in both product technology and marketing strategies has enabled Yuchai’s five mature product platforms and 11 engine series to perform strongly in the market. Truck sales rose by 52%, passenger car sales by 50.6%, and electricity sector sales by 29.7%. Yuchai’s Euro 4 engines entered Beijing in large numbers, becoming a major highlight in the passenger car market. Projects with Dongfeng and XGMA showed strong results, and the 6M model gained momentum. Major breakthroughs were made in highway trucks and Euro 3 passenger car markets, becoming new growth drivers. Overseas expansion also saw significant progress, especially in Russia where Euro 3 and 4W diesel engines gained traction. Export volumes to Vietnam also surged, exceeding last year's full-year totals. In addition, Yuchai’s construction machinery, auto parts, special vehicles, and logistics sectors are growing rapidly and playing an essential role in the company’s development. The construction machinery segment focused on quality improvement, cost reduction, and new product development, earning the title of "Most Influential Brand" in 2006. On the export front, Yuchai continues to expand into new markets like Central and South America and North Africa, maintaining its position as the top exporter of excavators under 15 tons. The special vehicles segment has adopted strategies such as strengthening the sales network, re-standardizing technical management, upgrading quality control, and reducing costs. These efforts have helped build competitive advantages in product variety, quality, and pricing. Meanwhile, the auto parts sector is leveraging its brand strength, expanding collaborations, and extending the industrial chain to create new competitive edges. The goal is to increase external support volume and market share, targeting nearly 300 million yuan in sales. Yuchai Logistics has expanded nationwide using its own machinery, covering routes from Guangxi to North China, East China, Central China, Northwest, Southwest, and Guangdong. It has become one of the largest logistics companies in Guangxi, recognized for its extensive inter-provincial routes, long-distance transport, and high freight volume. Yuchai Logistics also won the second place in the 2007 ranking of China's Top 100 Road Transport Companies and was honored as the "Top Customer Satisfaction Brand" in the road transport sector. In 2007, Yuchai won the "China Brand Annual Award NO.1" in the internal combustion engine category, further solidifying its reputation as a leader in the industry.

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