Yuchai and XCMG have signed an agreement to jointly build and share new channels for overseas development and embark on a new chapter of cooperation in the Eurasian region.
The agreement stipulates that Yuchai and XCMG will establish Yuchai Service Stations and Yuchai Service Training Centers in the Eurasian region to provide technical training and corresponding technical support for XCMG’s local dealers and customers. Yuchai also authorizes XCMG as its spare parts dealer in the Eurasian region. In addition, the two parties will jointly carry out the Blue Ocean Action brand promotion activities in the Eurasian market to enhance their international brand influence.
It is reported that XCMG, which sells construction machinery and tractors equipped with Yuchai engines in the Eurasian region, is one of Yuchai’s core OEMs in the area. After the signing of this strategic agreement, the two sides will further deepen their cooperation and promote the high-quality development of their overseas expansion strategies.
Source: HCZYW Read The Article
PSR Analysis: In 2024, both Yuchai International and XCMG Construction Machinery achieved remarkable growth in their overseas market revenues. Yuchai International’s total revenue reached $2.665 billion USD (19.134 billion yuan) by December 31, 2024, with a year-on-year increase of 6.02%, and its net profit attributable to shareholders grew by 13.15% to $44.98 million USD (323 million yuan). The company’s overseas market revenue surged by over 42%, with products exported to more than 180 countries and regions.
Notably, a power generation project in the Middle East, involving 153 generator sets, marked the largest single overseas export order for power generation that year. Additionally, the joint venture between Yuchai International and MTU sold approximately 700 diesel generator sets in 2024, successfully turning the business around from losses to profits.
XCMG Construction Machinery also saw robust overseas performance, with an overseas market revenue of $5.81 billion US dollars (41.687 billion yuan) in 2024, representing a year-on-year increase of 12.00% and accounting for 45.48% of its total annual operating revenue. In the first quarter of 2025, this revenue continued to grow, reaching $3.049 billion USD (21.9 billion yuan), up by 4.8% year-on-year.
To drive this growth, XCMG has focused on in-depth localization operations, establishing an integrated global development model that includes export trade, greenfield investments, cross-border mergers and acquisitions, and global R&D.
The company has also emphasized the development and promotion of high-end and new energy products, with revenues from these segments growing by more than 10% and 26.76% year-on-year, respectively. XCMG’s products are exported to over 190 countries and regions, covering more than 95% of the Belt and Road countries and regions, supported by a global network of over 40 subsidiaries and 2,000 service and spare parts outlets.
Building on these successes, Yuchai and XCMG have signed an International Strategic Cooperation Agreement to further expand their global presence. This partnership will combine Yuchai’s strengths in power solutions and XCMG’s extensive global network and localization capabilities, aiming to enhance market share and drive sustainable growth in international markets. PSR
Jack Hao is Senior Research Manager – China for Power Systems Research
