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YUCHAI is a leading enterprise in China’s internal combustion engine manufacturing sector and a globally prominent power system supplier. Its operating entity, Guangxi Yuchai Machinery Group Co., Ltd., was founded in July 1951, previously known as the Yulin Quantang Industrial Society established with a 20,000 yuan appropriation from the Public Security Department of Guangxi Province. Headquartered at No. 2 Yuchai Road, Yuzhou District, Yulin City, Guangxi, it is a financing and investment management enterprise focused on capital operation and asset management, owning more than 30 wholly-owned, controlled, and invested subsidiary companies. The current Chairman of the Board and legal representative is Li Hanyang.
As one of China’s internal combustion engine manufacturing bases with the most complete product spectrum and the widest range of applications, YUCHAI’s products include diesel engines, gas engines, hybrid power systems, pure electric power systems, and more. These are widely used in trucks, buses, construction machinery, agricultural machinery, marine machinery, power generation equipment, and other fields. The company has nearly 20,000 employees, including over 1,400 R&D personnel, and operates three R&D bases in Yulin, Nanning, and Europe. It possesses a national enterprise technology center, a national-accredited laboratory, and a national internal combustion engine engineering laboratory. In 2025, YUCHAI’s engine sales strongly exceeded 600,000 units, with multiple operating indicators reaching new historical records.
YUCHAI's 75-year development history is a microcosm of the Chinese national power industry going from nothing to something, from weak to strong.
Founding and Foundation (1951–1980s): In July 1951, the Yulin Quantang Industrial Society was established, engaging in small farm tool production and automobile maintenance most early. In 1957, selected mechanical manufacturing as the main direction, gradually entering the small power mechanical manufacturing field. In 1970, renamed Yulin Diesel Engine Factory. In 1984, the first prototype of the YUCHAI 6105QA direct injection diesel engine was successfully manufactured, changing the history of domestic swirl chamber diesel engines, marking YUCHAI's official entry into the core track of auto parts.
Restructuring and Takeoff (1990s): In 1992, YUCHAI completed the shareholding reform, establishing Guangxi Yuchai Machinery Group Company and Guangxi Yuchai Machinery Co., Ltd.. In 1993, implemented Sino-foreign joint venture shareholding reform, in June 1995 named China's largest internal combustion engine production base.
Technical Innovation Era (2000–2019): Post-doctoral research workstation approved for establishment in 2000. In 2006, launched China's first domestic Euro 4 diesel engine, in 2007 launched China's first ISG hybrid power engine. Signed joint venture agreement with German MTU company in 2016, in 2019 built the intelligent factory leading based on German Industry 4.0 standards - the "Dark Factory", production efficiency increased by over 90%.
Striving for World-Class (2020 to Present): On December 28, 2021, YUCHAI Group's 10 millionth engine rolled off the production line, simultaneously releasing the new "1235" strategy. Facing the "Dual Carbon" strategy and new energy wave, YUCHAI upgraded the strategy to the "1335" strategy. In 2025, YUCHAI sales revenue, total profit, and engine sales all reached new historical records, delivering an excellent answer sheet for the conclusion of the "14th Five-Year Plan", and won the Nominative Award for the 7th Guangxi Zhuang Autonomous Region Governor's Quality Award.
YUCHAI has built the longest product chain, widest product range, and most adaptable product spectrum in the industry, covering full-series power products from light to heavy duty.
Commercial Vehicle Power is YUCHAI’s core business. In 2025, commercial vehicle power sales reached 260,000 units, representing a year-on-year increase of 54%. Among these, tractor power sales surged by 164%, while light truck power sales quadrupled. Mainstream models include the YCK16LN natural gas engine, delivering 590–660 horsepower and focused on long-distance corridor logistics; the YCK09 series diesel engines, which excel in lightweighting and high power density, making them ideal for dump trucks, mixers, port tractors, and other complex working conditions; and the YCS07 series, which achieves an excellent balance of economy and reliability, becoming the top cost-performance choice for medium truck users.
General Machinery and Agricultural Machinery Power also enjoy significant advantages. In 2025, hybrid tractor sales increased by 110% year-on-year, and range-extended harvester sales surged by 417% year-on-year, both ranking first in the industry. The company maintains solid advantages in core fields such as heavy-duty tractors and corn harvesters, while its supporting share in niche scenarios including wheat harvesting, cotton picking, and silage covers 53%-91% of the market.
New Energy Power sector features a comprehensive layout across pure electric, hybrid, range-extended, hydrogen fuel, and other technology routes. Products such as the eCVT power-split hybrid powertrain, YCRE65 range extender, and Flywheel Range Extender System (FRS) have been mass-applied, with maximum power generation efficiency breaking through 4.8 kWh/L and a comprehensive fuel saving rate of up to 50%.
Ship Power and Power Generation are also advantageous sectors. The YC16VC engine delivers a maximum power of 3608 kW and is suitable for 1,800 kW–3,300 kW generator sets. It has been widely deployed in intelligent computing centers for many global leading internet enterprises, with product orders already scheduled through 2028.
2025 is a milestone year for YUCHAI. Engine full-year sales strongly exceeded 600,000 units, a year-on-year increase of 30%, growth rate leading the entire industry. Among them, commercial vehicle power 260,000 units (year-on-year +54%), overseas sales reached 130,000 units (year-on-year +57%), new energy power system sales increased by 155%. 2025 sales revenue 25.6 billion RMB, year-on-year increase 33.5%, net profit 707 million RMB, year-on-year increase 65.2%. During the "14th Five-Year Plan", YUCHAI cumulative sales of engines exceeded 2.4 million units, firmly ranking first in Chinese ship power, medium-heavy cargo truck power, bus power, and agricultural machinery power brands.
2026 opening momentum is strong, YUCHAI anchors annual 700,000 engine total sales target, year-on-year increase 17%. Among them, overseas sales target 160,000 units (year-on-year +33%), new energy power target 40,000 units (year-on-year +43%), intelligent equipment business income target 11.7 billion RMB (year-on-year +19%). First quarter construction machinery orders broke through 50,000 units, rice machine and tractor supporting orders increased by 200% year-on-year, first batch equipped with YCK16 Mengqing power mine trucks entered Indonesia mining area stable operation.
YUCHAI takes technological innovation as its core driving force. In 2025, its R&D investment intensity reached 8%, and the company established a 410 million RMB technology innovation reward fund. It has cumulatively won six National Science and Technology Awards, and its patent application volume has ranked first among Guangxi enterprises for consecutive years.
Hydrogen Internal Combustion Engine Zero Carbon Technology is YUCHAI’s most forward-looking technological high ground. The company launched China’s first commercial vehicle hydrogen fuel engine, the YCK05H (110 kW), and the nation’s largest displacement hydrogen fuel engine, the YCK16H (560 horsepower), formally ushering the Chinese internal combustion engine industry into the zero-carbon emission era. YUCHAI broke through key technologies such as low-pressure cylinder direct injection and ultra-lean combustion, overcoming challenges including early ignition and backfire. The YCK16H achieves a maximum effective thermal efficiency of over 45%, reaching international first-class levels. YUCHAI has also become the only professional power system supplier in China with full product coverage spanning light-duty and heavy-duty hydrogen internal combustion engines as well as fuel cell systems.
New Energy Power Systems have also yielded fruitful results. In 2025, the company launched the world’s most powerful and efficient integrated power generation system, the YCK20-600kW range extender assembly, achieving thermal efficiency of over 49% under common working conditions and motor power generation efficiency exceeding 97%. Compared with traditional fuel vehicles, it delivers a fuel saving rate of 25% and a carbon dioxide emission reduction of 25%. YUCHAI pioneered the globally first Flywheel Range Extender System (FRS) through a rigid coaxial integrated design of the flywheel and engine crankshaft, which has already captured over 96% market share in the new energy loader segment. In addition, YUCHAI’s patented "Variable Frequency Pulse Injection Strategy" has solved the industry challenge of urea crystallization in hybrid diesel engine aftertreatment systems. The supporting proportion for Euro 6 hybrid vehicles has reached 71.4%, and its domestic hybrid bus market share ranks first in the country.
YUCHAI’s overseas business is entering a full harvest period. In 2025, overseas sales reached 130,000 units, a year-on-year increase of 57%. During the "14th Five-Year Plan" period, cumulative overseas engine sales totaled 328,500 units, with a compound annual growth rate exceeding 42%. Its products are exported to more than 180 countries and regions worldwide, with business coverage spanning over 100 countries and regions.
In terms of production layout, YUCHAI has built its first overseas engine manufacturing factory in Thailand, which has achieved stable mass production and become a key pivot for radiating across the ASEAN market. In Vietnam, it jointly established an engine manufacturing factory with King Long Automobile, with an annual capacity exceeding 40,000 units, enabling localized products to cover the entire ASEAN market.
In terms of markets and customers, YUCHAI has established two engine manufacturing factories in ASEAN, operations across three overseas regions, and more than 200 service agents. In Saudi Arabia, its bus power market share exceeds 70%, firmly ranking first in the industry. The company has also achieved key breakthroughs in Central Asia, the Middle East, Africa, Latin America, and other regions. Additionally, YUCHAI has cooperated with German Rolls-Royce Power Systems to advance the YUCHAI Advantage Phase 2 project, signed a strategic cooperation agreement with Brazilian MWM, and achieved engine technology licensing exports in Vietnam, Turkey, and other Eurasian markets, successfully completing its transformation from "selling products" to a high-value model of "providing system solutions + exporting technical standards + shaping brand value."
Facing the "15th Five-Year Plan" (2026–2030), YUCHAI has established the ambitious goal of "becoming a world-class power system supplier".
Strategic Architecture has been fully upgraded to the "1335" Strategy: focusing on three core tracks — traditional power, new energy power, and intelligent equipment; implementing the three guidelines of "Do comprehensively, Do innovatively, Do powerfully"; and building five major supports — R&D power, manufacturing power, marketing power, service power, and brand power. The company aims to double its 2022 revenue scale by 2027 and double its 2025 revenue scale again by 2030.
Technology Route takes "Coexistence of multiple technology routes" as its core strategy. Chairman Li Hanyang clearly pointed out that the future vehicle power landscape will feature the diverse coexistence of internal combustion engines, pure electric, hybrid, hydrogen fuel, and other technology routes. YUCHAI will continue to invest in traditional internal combustion engines while increasing R&D in hybrid power, motors, electronic control, electric axles, and other systems, fully transforming itself into a "world-class power system supplier" rather than a pure diesel engine supplier.
In Global Layout, YUCHAI will adhere to the strategy of "Consolidate Asia, Deepen Africa, Breakthrough in Europe and America." The company has established more than 3,000 service stations and 5,000 spare parts outlets globally, with 169 overseas service agents. The overseas sales target for 2026 is 160,000 units.
At the product planning level, YUCHAI has released 10 new non-road power products in 2026, covering diesel, methanol, hybrid, and flywheel range-extended technologies, among others. The company will continue to strengthen its presence in emerging fields such as low-altitude economy, ship power, and intelligent equipment. Over the next five years, YUCHAI will focus on "steady business improvement" with one hand and "controllable risk and solid foundation" with the other, taking customer success as its core, and advancing at full speed toward becoming a world-class power system supplier.
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