In the face of the slowdown in the global engine industry, by the product strategy of from city to countryside, Guangxi Yuchai Machinery Group successfully made its sales income of last year reach 20 billion Yuan for the first time. At the Technology Center of Guangxi Yuchai Group, the person in charge told the reporter that, the employees had extended the 5 working days to 6 working days a week because too many new models of engines were waiting for testing. The overtime work of the testing department was to meet the 30% demand surge of Yuchai engines in rural market. However, not long ago, Yuchai was troubled by the slowdown in the sales of engines for the on-road vehicle. Where is the market to solve the product backlog? In 2008, the state put a budget of 4 billion Yuan to subsidize the purchase of agricultural machines and tools. Yuchai took the opportunity. Manager Zhong shown the statistics to the reporter: the average subsidy for a farmer to buy an agricultural machine is up to about 30%. For a large size machine it will reach 200 thousand Yuan. In 2009, the subsidy is expected to grow to 10 billion Yuan. According to the current 40 % market share of Yuchai in the agricultural machine market, it will add 500 million Yuan to Yuchai in each month. Consequently, the strategy of from city to countryside is an inevitable choice for Yuchai.
Source: CCTV News Broadcast
