Yuchai presents the world with a green power brand

In the bidding process for the third batch of National IV engines for Beijing’s buses, held ahead of the 2008 Olympic Games, Guangxi Yuchai Machinery Group Co., Ltd. secured 100% of the winning bids, capturing all contracts in one go. The company’s nearly 2,000 National IV engines were selected in three rounds, accounting for 40% of the 4,200 Olympic buses in Beijing and breaking the dominance of imported engines. Compared to National III vehicles, National IV engines reduce particulate emissions by 80%, while offering better power performance and fuel efficiency. Why has this engine manufacturer, located near the southern border of China, achieved such remarkable success? A few days ago, a reporter visited Yuchai Group in Yulin City, Guangxi, to uncover the secrets behind this ethnic enterprise’s rise as a market leader. **Providing Green Power for the Olympics** As early as 2001, when Beijing won the bid to host the Olympics, it promised that air quality during the event would meet national standards and World Health Organization guidelines. As the main operator of public transport, Beijing Bus Group is a major contributor to air pollution. To improve air quality, the State Environmental Protection Administration led efforts with various industries and departments implementing measures aimed at reducing emissions. The Beijing Bus Group announced that 4,200 special buses would be deployed during the Olympics. Zheng Shusen, chairman of the group, emphasized that these vehicles needed to meet strict requirements, including reliable quality, long service life, and compliance with national emission standards. After a rigorous evaluation, over 130 companies qualified for the bidding, with many domestic brands making a strong showing. In 2008, Beijing fully implemented National IV emission standards, prompting an open bidding process for new IV vehicles and parts in early 2007. Under fair competition, Yuchai secured more than 2,000 orders across three batches, all of which were delivered in time for the Olympics. Their success rate increased from 18% in the first batch, 32% in the second, to 100% in the third. According to Chen Xunan, vice president of Yuchai Sales Company, the company’s engines stood out due to their stable emissions, low fuel consumption, and excellent performance and durability. Guo Deming, secretary general of the Yuchai Group Council, explained that the company’s chairman personally visited Beijing during the first batch of bidding, presenting the technical capabilities, supply chain strength, and after-sales support of Yuchai’s National IV engines. This effort helped Yuchai become the only domestic engine manufacturer to win the first batch of bids, breaking the dominance of imported engines. Following this, Yuchai quickly initiated technology integration, development, and after-sales services, ensuring smooth operations for the Olympics. **"Green Development" Is the Way Forward** At Yuchai Group’s Power Building, Chairman Yu Ping expressed his deep concern about environmental issues. “With more cars on the road, fewer blue skies remain. Engines, known as the ‘heart’ of vehicles, are inevitably responsible. To improve the environment, we need a ‘green heart’ for cars,” he said. Yuchai has made green development its core strategy, emphasizing resource conservation and environmental protection. In 2005, the company introduced the concept of “green development, harmony, and mutual benefit,” elevating it to a central part of its business model. At the 2007 Shanghai International Engine and Manufacturing Technology Exhibition, Yuchai showcased nine high-standard, low-emission engines suitable for various applications, including automotive, construction, marine, and agricultural sectors. Additionally, Yuchai developed a hybrid passenger car model that delivers six-cylinder engine performance with a four-cylinder engine, reducing urban fuel consumption by around 20% and significantly cutting exhaust emissions. The company also launched the YC6L-50 V diesel engine with independent intellectual property rights, filling a gap in China’s high-emission standard diesel engine market. **Green Manufacturing: A New Era** Yuchai's “green manufacturing” approach aims to eliminate waste, loss, and defects across six areas. Through optimized design, advanced equipment, and improved processes, the company has greatly reduced energy consumption and emissions. According to Liang Heping, executive deputy general manager, Yuchai has cut annual production energy use by about 25%. The company continues to invest over 25 million yuan annually in environmental protection, striving toward a goal of “zero emissions.” **Company Overview** Yuchai is currently the largest supplier of independent diesel engines in China, ranking first in both production and sales. It is the world’s largest independent diesel engine production base and China’s largest producer and exporter of small and medium-sized construction machinery. Known as the “Green Capital of China,” Yuchai’s brand value reached 5.336 billion yuan, ranking 24th among China’s top 500 machinery enterprises. In 2007, the company exceeded 500,000 engine units in production and sales, with revenue reaching 18.35 billion yuan—an increase of 29% year-on-year. Its market presence spans over 1.5 million units, offering 13 series and more than 2,000 models.

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