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In 2005, Yuchai achieved remarkable success despite the overall downturn in the automotive industry and a significant decline in performance among domestic diesel engine manufacturers. The company's cumulative sales surpassed 238,000 units, marking a 13% year-on-year increase and securing its position as the top producer and seller of internal combustion engines for the third consecutive year.
In September 2005, Yuchai made history by winning the "National Quality Management Award" in Beijing, becoming the first company in the internal combustion engine industry to receive this prestigious honor. Later that same month, the brand was recognized as one of China's most famous products, with its multi-cylinder diesel engines being acknowledged in the Great Hall of the People.
This year marked a significant milestone in Yuchai’s journey toward building a globally renowned brand. The company focused heavily on independent innovation, understanding that world-class brands must be built on strong internal capabilities. In November 2005, Yuchai introduced a groundbreaking incentive mechanism for its technological backbone: an annuity option plan where outstanding researchers received annual rewards deposited into personal accounts, which they could claim after 15 years. This move aimed to retain talent and drive continuous innovation.
To support this vision, Yuchai invested heavily in advanced equipment and infrastructure. Since 1995, it has poured nearly 1 billion yuan into upgrading its facilities, including the construction of state-of-the-art machining workshops, foundries, and a high-level technology center. These investments helped Yuchai develop cutting-edge technologies and maintain a competitive edge.
Collaboration with international research institutes, such as FEV in Germany, further enhanced Yuchai’s technological platform. During the “Ninth Five-Year Plan†and “Tenth Five-Year Plan†periods, the company focused on energy efficiency and environmental protection, obtaining 39 patents and 21 proprietary technologies.
Yuchai also expanded its product range to cover a wide array of applications, from commercial vehicles to construction machinery, agricultural equipment, and marine engines. With over 100 automakers nationwide relying on its engines, the company solidified its market leadership.
Customer satisfaction remained a top priority. Yuchai’s service network included 29 offices and over 1,000 technical service stations across the country. The company pioneered warranty milestones in the engine industry and extended its warranty to 250,000 kilometers for certain models. It also implemented strict service standards, ensuring rapid response times, timely communication, and high-quality support.
Internationally, Yuchai began exploring global markets as early as 1996, expanding from Southeast Asia to Cuba, the Middle East, and Central Asia. It even entered the high-end market in developed countries, winning contracts with Japanese clients like Yamaha Ships Machinery Co., Ltd. Today, Yuchai’s engines are exported to more than 30 countries, with export volumes doubling in recent years.
The company has established overseas offices in Cuba, Vietnam, Indonesia, and North America, while forming strategic partnerships with major domestic automakers such as Daikin Dragon, Yutong Bus, and Dongfeng Liuqi. These efforts have helped Yuchai build a strong global presence.
In 2007, Yuchai was honored with the "China Brand Annual Award NO.1" in the internal combustion engine category, cementing its status as a leading brand in the industry.