Amid the stability and moderate growth of the internal combustion engine industry, Yuchai Machinery Co., Ltd. ahs given a satisfactory answer: it sold 39,007 units in July, up 25.8 percent year on year, registering the highest level in July compared to previous years. The monthly sales of bus engines and general engines hit new highs, and truck engine sales were close to the highest level in 2010; in the first seven months, Yuchai sold over 310,000 units with revenues of over 12 billion yuan, up 15 percent year on year alike. Yuchai's share in the engine market was 1 percent up year on year, continuing its lead in the industry.

In the first seven months, Yuchai's engine sectors showed strong momentum: driven by the soaring sales of large-horsepower heavy-duty truck engines, the sales of the truck engine sector picked up 12 percent; boosted by the coach engine market and the school engine market, the sales of the bus engine sector grew 9.2 percent; thanks to the sales boom of agricultural machinery engines: tractor engine sales grew 37.3 percent and combine engines grew 100.4 percent, the sales of the general engine sector jumped 36.2 percent and the market share of the agricultural machinery sector rose 2.1 percent; amid the sharp fall in the construction machinery market; Yuchai's overseas sales were optimistic, with over 16,000 units penetrating into the overseas market, up 40 percent year on year. With the popularization of the national policies for energy conservation and emission reduction, Yuchai's gas engine sales topped 150,000 units, and its sales of engines above the national IV emission standard exceeded 22,000 units.

Besides, Yuchai's subsidiaries operated in good conditions overall. Xiamen Yuchai's output and sales grew 15 percent and 14 percent respectively; Y & C Engine's output and sales also soared over 78 percent and 50 percent respectively. The sales of 6K/6KN large-horsepower engines soared 70 percent, building the platform and image of large-horsepower high-end engines.

Yuchai has stuck to the objective of "improving quality by 100 percent in three years", enhanced internal management, and steadily advanced work such as lean manufacturing, cost reduction and benefit increase, to keep improving product and operation quality. Since 2013, Yuchai has produced prominent effects of quality improvement and lowered the cost ratio substantially; has met expectations in terms of the inventory of finished products, parts and goods in process, been smoothly in material flow and met the control requirement of turnover days of production inventory; and has achieved certain effects of operating cost control and reduced operating cost significantly.

General Manager Wu Qiwei said the industry would probably remain sluggish in the coming two or three years. In the second half of this year, the company will stress system management and intensive improvement more, enhance the building of commodity force, manufacturing force, marketing force and system force, and highly value quality, cost and income, to ensure the healthy and sustainable development of the company through systems.

According to the current market situation, boosted by engine sales growth and operation quality improvement, Yuchai is expected to over-fulfill the target of engine sales and operating revenues set at the beginning of this year.

(Yang Mingze)