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China Yuchai International Reports Achievements

Diesel Engine Sales and Production Reached 383,000 Units in 2007

SINGAPORE, Jan. 28 /Xinhua-PRNewswire-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) (“China Yuchai” or the “Company”), the leading manufacturer and distributor of diesel engines in China, today commented on the achievements of its subsidiary, Guangxi Yuchai Machinery Company Limited ("Yuchai"), in sales, technology and progress on environmental issues in 2007.

Sales

In 2007, diesel engine sales and production reached 383,000 units. Yuchai remains the leader in the Chinese diesel engine market and the largest single-facility producer of commercial automotive diesel engines in the world. Yuchai aims to promote exports and the goal is to become an international production center for high-quality diesel engines and establish the Yuchai brand name globally.

Among the 383,000 units, truck engine sales reached 230,000 units, bus engine sales reached 80,000 units representing approximately 50% of the Chinese OEM diesel bus engine market, State III and State IV engine sales exceeded 10,000 units; and exports reached 29,000 units. During the 2008 Olympics, there will be over 1,050 buses equipped with Yuchai State IV diesel engine handling Olympic teams’ transportation.

Technology & Environment

Yuchai currently holds proprietary technology covering 10 State III compliance engine models as the leading engine maker offering the most variety, broadest series and widest application in China for the downstream vehicle markets including trucks, buses, construction equipment, agricultural machinery, power-generators and marine applications. The tougher emission standards adopted by the Chinese government present a new opportunity for Yuchai.

Yuchai’s YC6L-50 State V (equivalent to Euro V standard) Electrically Control diesel engine is Yuchai’s self-developed low emission new model with 240-330 horse power and low fuel consumption, which also further reduces NOX emission by nearly 50% compared with Euro IV. The design of this engine is based on Yuchai’s proprietary Automatic Control Unit integrated with an imported electrical injection system and SCR emission control system.

The YC6M and YC6L are two heavy-duty vehicle engine models developed by Yuchai and European engine designers to lower emissions and improve fuel efficiency. These engine models not only meet Euro V standards as environmentally friendly, but are also compact in size. These engines are ideal for luxury buses and metro buses.

Since the second half of 2006, more and more provinces in China have adopted a traffic toll system based on vehicle weight. This creates an opportunity for lighter weight vehicles which can also provide higher horsepower and torque. Yuchai’s 8.4 liter, 4 cylinder YC6L engine meets these specifications and naturally has become the first choice of many trailer vehicles.

Yuchai’s State III engine advantages lie in its superior R&D capability and high efficiency performance. Yuchai’s State III four cylinder diesel engines have been in the market for more than 5 years and are more mature than its rivals. Therefore, there are more parts available in the marketplace for this engine series and Yuchai’s service network has accumulated a good amount of knowledge for the State III engine repair.

2008

In 2008, Yuchai will continue to enhance its product quality and competitiveness by encouraging greater on-going communication between the product development team and sales marketing team. Yuchai is planning to build the premier engine research and engineering institute in China with a goal of it being recognized as one of the top 5 engine research centers in the world.

To improve marketing in 2008, product models will be enhanced by optimizing the ratio of universal parts, thus lowering purchasing costs and improving the price-to-efficiency ratio. In response to the Chinese government’s upgraded emission standards, Yuchai will increase the communication with OEMs on product development and optimization.

To better assist customers, a complete service network and computerized service support system has been established. In 2008, service will be further improved by increasing service training, broadening service categories and enhancing the technical support content ratio.

About China Yuchai International

China Yuchai International Limited, through its subsidiary, Guangxi Yuchai Machinery Company Limited ("Yuchai"), engages in the manufacture, assembly, and sale of a wide array of light-duty, medium-sized and heavy-duty diesel engines for construction equipment, trucks, buses, and cars in China. Yuchai also produces diesel power generators, which are primarily used in the construction and mining industries. With over 30 regional sales offices and 460 authorized customer service centers, the Company distributes its diesel engines directly to auto OEMs and retailers and provides maintenance and retrofitting services throughout China. Founded in 1951, Yuchai has established a reputable brand name, strong research & development team and significant market share in China with high-quality products and reliable after-sales support. In 2007, Yuchai sold approximately 383,000 diesel engines and was consistently ranked No. 1 in unit sales by China Association of Automobile Manufacturers. For more information, please visit http://www.hlcorp.com.sg/cyi .

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company’s operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including those discussed in the Company’s reports filed with the Securities and Exchange Commission from time to time. The Company specifically disclaims any obligation to update the forward-looking information in the future.

For more information, please contact:

Kevin Theiss / Dixon Chen

The Global Consulting Group

Tel: +1-646-284-9409

Email: ktheiss@hfgcg.com

dchen@hfgcg.com

Source: China Yuchai International Limited
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