On January 13, Yuchai Group held the 2024 Partner Conference in Yulin under the theme of “Collaborative Innovation and Mutual Support for a Shared Future”. Yuchai, together with nearly 2000 partners, fully showcased the latest technologies and innovative achievements in the engine sector. The conference served as a platform for Yuchai to work alongside its partners to jointly establish new mechanisms, create new business forms, and pursue new development. As a leader in China’s engine industry, Yuchai unveiled 15 new engine products at the event. These included YCK16N high-horsepower gas engine, YC6CAXM methanol engine, and a high-power extended-range engine, offering customers with a broader array of power system solutions.

Government and association leaders attended the conference and delivered speeches. These leaders included Qin Rupei, a member of the Leading Party Members Group of the People’s Government of Guangxi Zhuang Autonomous Region and Secretary of the CPC Committee of State-owned Assets Supervision and Administration Commission of Guangxi Zhuang Autonomous Region, Wang Chen, Secretary of the CPC Yulin Municipal Committee, and Xing Min, Executive Vice President and Secretary-General of China Internal Combustion Engine Industry Association. Additionally, Li Hanyang, Secretary of the Party Committee and Chairman of Yuchai Group, made a keynote speech, while Wu Qiwei, President of Guangxi Yuchai Machinery Co., Ltd., presented a keynote speech on the engine system. At the conference, outstanding partners of Yuchai were commended.

Collaborative Innovation and Joint Efforts

After more than 70 years of ups and downs, Yuchai remains dynamic and vibrant, consistently enhancing its brand competitiveness and operational quality. Particularly in recent years, against the grim situation of a complex and changing business environment, continuous upgrades to policies and regulations, and the rapid evolution of new technologies, Yuchai Group has collaborated closely with its partners to face challenges head-on and forge ahead hand in hand. In 2023, Yuchai achieved record-breaking sales revenue and registered a brand value exceeding RMB 85.8 billion, ranking first in the internal combustion engine industry for the 18th consecutive year.

Qin Rupei delivered a speech, affirming the achievements made by Yuchai in operation and development, and encouraging Yuchai to focus on its main responsibilities and business. He urged Yuchai to adhere to scientific and technological innovation to stimulate vitality, deepen reform to create new growth momentum, and pursue opening-up and cooperation to form synergy. Qin emphasized that Yuchai should do a good job in strengthening industries, improving quality and efficiency, and cultivating new opportunities. He encouraged Yuchai to cooperate with its partners at home and abroad, and actively participate in the ASEAN market, the Belt and Road Initiative, and the construction of the New International Land-Sea Trade Corridor in the western region. At the same time, He pointed out that Yuchai should work towards enlarging its market presence, and delivering more high-quality products to the world. This would enhance the reputation of products made in Guangxi and products made in China, and push Yuchai to move towards the goal of building a world-class enterprise, and make new contributions to promoting the high-quality economic and social development of Guangxi.

Wang Chen praised Yuchai as a beautiful gem in Yulin. Taking root in Yulin for over 70 years, Yuchai has significantly contributed to the city’s high-quality economic and social development, serving as a well-deserved benchmark for industry in Guangxi and Yulin. Wang expressed his hope for Yuchai to leverage its leading role as an industry leader. He encouraged Yuchai to further develop the whole industrial chain, shore up weaknesses of the industrial chain, and take scientific and technological innovation as the primary area for breakthroughs. Doing so will help to open up more new areas and new arenas, thus better promoting the transformation and upgrading of both upstream and downstream enterprises in Yulin, enabling them to build up their strength and size. Wang also mentioned that the CPC Yulin Municipal Committee and the People’s Government of Yulin will firmly support the development of Yuchai, helping Yuchai to implement its doubling plan, and to expand beyond Guangxi and go global, starting from its home base in Yulin.

Xing Min affirmed the achievements made by Yuchai, highlighting that as a key leader in China’s internal combustion engine industry, Yuchai has not only witnessed the rise and development of the industry, but also made outstanding contributions to the robust growth of the industry. Xing pointed out that in recent years, Yuchai has taken the development of internal combustion engine as its main business, adopted a customer-focused approach, and had the courage to break new ground. As a result, Yuchai has successively launched a number of pioneering products, some of which have reached international standards and filled several market gaps. Furthermore, Yuchai has continuously expanded its market share and international brand recognition, contributing to the coordinated development of China’s internal combustion engine industry and automobile industry chain, as well as the achievement of China’s carbon peaking and carbon neutrality goals.

At the conference, Li Hanyang delivered a keynote speech titled "Working Together for Success", emphasizing Yuchai’s survival philosophy of helping customers succeed, and clarifying Yuchai’s ambition and pursuit of becoming China’s leading power system supplier with world-class standing. Li pointed out that customers are the ones upon whom Yuchai’s survival depends. Without customer demand, there would be no foundation for Yuchai’s existence. Yuchai will adhere to the philosophy of “surviving as a driver to customers’ success”, and strive to implement the concept of “helping customers succeed” through various means such as industrial restructuring, organizational reform, R&D system reform, and marketing service reform. Yuchai is an ambitious enterprise with aspiring employees. In order to achieve the goal of being the industry leader in China and becoming a world-class enterprise, Yuchai has devised the “1+2+3+5” strategic roadmap to implement the doubling plan. In the future, Yuchai will collaborate with partners across the industrial chain to deal with challenges together, and work hand in hand for success and a better future.

Mutual Support to Share Greater Benefits

Over the years, Yuchai has always adhered to the strategic positioning of “being an independent professional power system supplier”, regardless of changes in the market environment. It has formed strategic cooperation alliances with OEMs, dealers, service stations, and suppliers. Through sincere cooperation and collaborative efforts, Yuchai aims to create value for its customers, and foster mutual success. In 2023, Yuchai took a big stride toward improving quality and efficiency:

In the commercial vehicle engine sector, Yuchai has successfully launched a full range of CHINA VI products, achieving the highest market share in the industry across various segments. These segments include 4~8L medium- and heavy-duty engines, engines for medium- and heavy-duty engineering trucks, engines for conventional buses over 6 meters, and engines for hybrid power buses. In 2023, Yuchai achieved double-digit growth in the sales volume of CHINA VI tractor engines and bus engines, as well as three-digit growth in the sales volume of gas engines on a year-on-year basis.

In the off-road engine sector, Yuchai has achieved the highest market share in five engineering machinery engine segments. These segments include engines for wheeled excavators, mining vehicles, large-tonnage forklifts and aerial work platform trucks, and explosion-proof engines. Additionally, Yuchai has led the industry in agricultural machinery engine segments such as engines for tractors, cotton pickers, wheat harvesters, and sugarcane harvesters, and has particularly held an absolutely dominant position in the high-horsepower agricultural machinery engine segment.

In the marine & G-drive engine sector, Yuchai has achieved the highest market share for G-drive engines and marine engines with a displacement of over 16L. Yuchai’s high-power G-drive engine offerings have penetrated premium markets such as communication systems, petroleum systems, and data centers, filling the gap for domestic brands. Additionally, Yuchai’s independently developed G-drive engines fueled by gas and ferroalloy tail gas have become so sought-after that the supply has fallen short of demand.

In the clean-energy engine sector, Yuchai’s clean-energy engines have been used with various supporting market products. These include range extenders, fuel cells, motors with the highest power in China, and the world’s first ISG power generation powertrain (YC IE-Power). Yuchai has established the Hydrogen Energy Technology Company, aiming to establish a hydrogen energy R&D and production base, and build future-oriented capabilities in the whole industry chain of hydrogen energy.

In the overseas market segment, Yuchai has established a clear strategy for overseas expansion, and has exported its products and services to more than 180 countries and regions around the world, achieving full coverage of countries and regions along the Belt and Road. As a result, Yuchai has emerged as one of the most successful Chinese engine brands in the overseas market. In 2023, Yuchai’s engine export volume grew by nearly 30% on a year-on-year basis. At present, the overseas ownership of Yuchai engines has reached nearly 650,000 units.

Wu Qiwei delivered a keynote speech on power system. He analyzed the complexity and uncertainty of the external environment, pointing out that the business landscape is complex and diverse, characterized by an era of stock properties, cyclical adjustment, and the impact of new energy and internationalization. Wu highlighted that in the face of such a business landscape, and under the impact of such factors as continuously upgraded policies and regulations and rapid evolution of new technologies, there are both opportunities and challenges. At present, Yuchai is standing together with its partners through thick and thin to jointly promote the doubling plan and the “1+2+3+5” strategy—

Doubling plan:

By 2025, Yuchai will double both its annual sales volume and sales revenue of power systems. By 2027, Yuchai will become the power system leader in China.

By 2030, Yuchai will become a world-class power system enterprise.

“1+2+3+5” strategy:

1 goal: to become a world-class power system supplier by 2030.

2 arenas: conventional engines + clean-energy engines. For conventional engines, Yuchai is committed to sustainable development, ensuring that its products are professional and practical. For clean-energy engines, Yuchai adopts a proactive approach and is dedicated to open cooperation.

3 guidelines: to grow comprehensively, innovatively, and stronger. To grow comprehensively entails offering an extensive assortment of products, serving all market segments and customer bases, broadening the application of conventional engines, and progressing toward the development of medium- and low-speed engines, as well as engines fueled by natural gas, hydrogen, ammonia, and methanol. To grow innovatively involves entering the clean-energy engine sector in an all-round way, transitioning from low-carbon to zero-carbon solutions, and devoting energy to the development of hybrid engines, pure electric products, and hydrogen engines, thereby becoming a first-class clean-energy power system supplier in the industry. To grow stronger involves enhancing Yuchai’s position in market segments, and strengthening strategic alliances with top customers in the industry, thereby becoming a significant driving force for mainstream customers in important market segments.

5 guarantees: R&D strength + manufacturing strength + marketing strength + service strength + brand strength (hereinafter referred to as “five strengths”). This strategy involves pooling superior resources, and collaborating with upstream and downstream enterprises to bolster these “five strengths”, thereby facilitating parallel progress in development, production, and promotion, and helping customers succeed with the best products and services.

Through the implementation of the doubling plan and “1+2+3+5” strategy, Yuchai has allied with the world’s best strategic partners, aiming to establish the optimal ecosystem, the most harmonious circle of friends, and the most open cooperation circle in the face of an ever-changing market landscape. The ultimate goal of Yuchai is to achieve the goal of becoming a world-class power system supplier.

Strengthening the Enterprise with Science and Technology for a Shared Future

Scientific and technological innovation is always the strongest driving force for enterprise development. Amidst the ever-changing market competition and industry pressures, Yuchai has always adhered to self-reliance and self-improvement in science and technology, securing its market presence with independently innovative products.

On the same day, Yuchai launched 15 new engine products, including YCK16N high-horsepower gas engine, YC6CAXM methanol engine, and a high-power extended-range engine, encompassing both conventional and clean-energy engines. These products can be used with commercial vehicles, engineering machinery, agricultural equipment, and power generation equipment. They maintain a leading edge in terms of power performance, reliability, economy, and other indicators, promising to deliver tangible value to customers.

Among these products, YCK16N high-horsepower gas engine represents the pinnacle of Yuchai’s heavy-duty gas engine offerings. It features a maximum power of 660 horsepower and a peak torque of 3000 N·m, as well as strong power and quick response. Its gas consumption per 100 km is 1-2 kg lower than that of competing products with the same displacement. The B10 service life of this model can reach up to 1.8 million kilometers, setting its reliability well ahead of others in the industry. YCK15 CHINA VI diesel engine is China’s first mass-produced 700-horsepower engine with thermal efficiency exceeding 50%. YCS07 CHINA VI diesel engine stands as the lightest and most fuel-efficient 7L engine in the industry. Meanwhile, YCK12L CHINA VI diesel engine is hailed as the smallest and lightest 12L diesel engine in the industry. YC12VTD off-road CHINA IV diesel engine sets the industry standard in terms of displacement, power, torque, and other indicators. It is the preferred power choice for 10-150t electric wheel mining trucks, Type 1000-1600 petroleum fracturing trucks, and railway locomotives. YCK16-400kW is equipped with an intelligent hybrid system, achieving a 20% increase in oil-to-electricity conversion efficiency and a 14% increase in the volumetric specific power density. This model has reached the international advanced standard, and can be widely used in mining vehicles, silage maize harvesters, cotton pickers, air compressors, drilling machines, and tractors. YC16VCN is China’s first high-speed gas G-drive engine suitable for 2MW gensets, boasting an electrical efficiency of over 42%, nearing international top-tier standards. It is the preferred power choice for natural gas, gas, biogas, alloy tail gas, and oil field gas power stations. YC6CAXM is China’s first high-power marine methanol engine with dual HPCR fuel injection system. This world-leading model has a methanol substitution rate as high as 95%. It is the preferred power choice for 6000-10000t inland river transport ships and container ships.

At the event, nearly 100 new vehicle products jointly developed by Yuchai and vehicle manufacturers were displayed.