China Yuchai International Limited (CYD): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of China Yuchai International Limited (CYD) following their solid first half of 2025, and honestly, understanding their business model is key to seeing where the next growth comes from. With RMB 13.8 billion in revenue and a war chest of RMB 7.8 billion in cash as of 1H 2025, this isn't just about selling diesel engines anymore; they are aggressively pivoting to multi-fuel solutions and new energy tech, evidenced by their R&D spend jumping over 21%. I've mapped out their nine building blocks-from their key partnerships like Kim Long Motor Hue to their core value proposition of meeting strict China VI standards-so you can see exactly how they convert manufacturing prowess into revenue streams like engine sales (over 250,396 units shipped) and tech licensing. Dive below to see the full, precise breakdown of how this powerhouse operates right now.

China Yuchai International Limited (CYD) - Canvas Business Model: Key Partnerships

China Yuchai International Limited (CYD) relies on several critical alliances to execute its powertrain strategy, spanning technology transfer, high-end manufacturing, and market penetration.

The partnership with Vietnam's Kim Long Motor Hue is central to ASEAN expansion. China Yuchai International Limited granted technology licensing rights for certain engine series for a total fee of $28 million. This agreement grants Kim Long Motor 15-year exclusive sales rights in Vietnam and priority rights across other ASEAN countries and South Korea. The joint manufacturing effort involves a plant with an investment of around $260 million, with the first phase slated to be operational by the second quarter of 2025, initially targeting a capacity of over 12,000 engines per year for commercial vehicles, power generation, and agricultural machines.

For high-horsepower, high-end products, the joint venture with Rolls-Royce, MTU Yuchai Power (MYP), is key. MYP is a 50/50 joint venture. This entity finalized production of the new mtu Series 2000 G06 engine at its Suzhou facility in 2025. Cumulative production of the mtu Series 4000 engines since its inception has exceeded 3,000 units. The financial contribution from associates and joint ventures, which includes MYP, saw its profit share grow by 42.6% to RMB 61.4 million (US$ 8.6 million) in 1H 2025. In 2024, MYP expanded its scope to include the 4000 Series S83 and 2000 Series engines.

Direct supply relationships with Auto OEMs (Original Equipment Manufacturers) form the core of volume sales. China Yuchai International Limited distributed its engines directly to these manufacturers. The total number of engines sold by the company in 1H 2025 reached 250,396 units, a 29.9% increase year-over-year. Specifically, truck and bus engine unit sales increased by 38.0% in 1H 2025. For context, the company sold 356,586 engines in the full year 2024.

The strategic push into new energy is supported by the Nanning Municipality. An agreement was made to research, develop, and construct new production capacity for technologies like fuel cell systems and range extenders. The investment vehicle for this, Yuchai Xin-Lan New Energy Power Technology Co., Ltd., has a registered capital of RMB 500 million. Nanning's role includes driving pilot operations for hydrogen fuel cell buses.

To support its international footprint beyond the ASEAN focus, China Yuchai International Limited utilizes global distributors and its own network of regional sales offices. An example of this global reach is the commencement of K08 engine production at Yuchai Machinery Power System (Thailand) Co., Ltd. The company maintains a presence across China and internationally through these channels.

Here's a quick look at key partnership metrics:

China Yuchai International Limited (CYD) - Canvas Business Model: Key Activities

You're looking at the core engine room of China Yuchai International Limited, the actual work that drives the revenue. This isn't just about making engines; it's about the breadth of the technology and the scale of the operations required to support it, especially as they push into new energy.

Design and manufacture of diesel, natural gas, and new energy powertrains. This is the bread and butter. For the first half of 2025 (1H 2025), China Yuchai International Limited moved a total of 250,396 units of engines. That's a solid increase of 29.9% compared to the 192,743 units sold in the same period last year. They cover the full spectrum, from traditional diesel and natural gas to the newer electric, range extender, hybrid, and fuel cell systems. The manufacturing footprint is expanding too; for instance, Yuchai Machinery Power System (Thailand) started production of the K08 engine, helping deepen their presence in the ASEAN markets.

Extensive R&D on new energy solutions (fuel cell, hybrid). You can't lead in powertrains without heavy investment here. In 1H 2025, total R&D expenditures, which include capitalized costs, hit RMB 551.7 million (or about US$ 77.1 million). That spend represented 4.0% of their total revenue for the half-year period. They are definitely stepping up the focus on hydrogen combustion engines and hybrid powertrains, which is where the future is, even if the R&D percentage dipped slightly from 4.5% in 1H 2024.

Managing a vast domestic and international service network. The sale is only the start; keeping those engines running is key to customer retention. China Yuchai International Limited relies on an extensive network of regional sales offices and authorized customer service centers. This infrastructure is what allows them to distribute engines directly to auto OEMs and, critically, provide after-sales services across China and globally. That reliable after-sales support is part of what solidified their position after selling 356,586 engines in the full year of 2024.

Production of specialized engines for data center power generation. This segment is clearly a high-demand area right now. Honestly, demand for their data center generators was so strong that the 2025 order book was already full as of early 2025. To meet this, production was set to increase by at least 30% just to keep pace with existing commitments. Furthermore, sales to the marine and power generation markets specifically drove the off-road segment growth, increasing by 31.5% year-over-year in 1H 2025.

Securing and managing technology licensing agreements. To accelerate access to new tech and markets, licensing is a vital activity. Back in 2024, for example, China Yuchai International Limited signed a $38 million licensing deal specifically for e-train engine technology in Southeast Asia. Plus, their joint venture, MTU Yuchai Power (MYP), is expanding its portfolio, with production and sales of the mtu Series 4000 oil and gas engine expected to start shipments in late 2025, which requires managing that ongoing cooperation with Rolls-Royce's Power Systems division.

Here's a quick look at the scale of the manufacturing and development efforts based on the latest figures you have:

The operational focus is clearly on volume growth while simultaneously funding the transition:

• Design and manufacture of diesel, natural gas, and new energy powertrains.
• Extensive R&D on new energy solutions (fuel cell, hybrid).
• Managing a vast domestic and international service network.
• Production of specialized engines for data center power generation.
• Securing and managing technology licensing agreements.

Finance: draft 13-week cash view by Friday.

China Yuchai International Limited (CYD) - Canvas Business Model: Key Resources

You're looking at the core assets that power China Yuchai International Limited (CYD) as of late 2025. These aren't just line items; they are the physical and intellectual foundations of their market position.

The primary physical asset is the Guangxi Yuchai Machinery Company Limited (GYC) manufacturing base. This operation is headquartered in Yulin, Guangxi, but the industrial footprint is spread across key regions including Guangdong, Jiangsu, Anhui, Shandong, Hubei, Chongqing, and Liaoning. The Yulin facility itself houses 3 major casting shops, 20 engine parts machining lines, and 9 engine assembling lines. The company has been aggressively modernizing, having invested more than CNY 2 billion to upgrade the China VI production line, aiming for a 'dark factory' level of automation. They have an stated annual output capacity of 600,000 engines.

Financially, the liquidity position as of the first half of 2025 provides a strong buffer. You can see the cash position here:

The intellectual capital is significant, resting on proprietary engine technology and intellectual property. China Yuchai International Limited has established four R&D bases located in Yulin, Nanning, Jiangsu, and Europe. This R&D effort resulted in 1H 2025 R&D expenses of RMB 476.7 million (US$ 66.6 million). The company claims leadership in innovation, having launched products like China's first commercial vehicle hydrogen burning engine and the world's first power split plug-in hybrid. They maintain key R&D platforms, including national enterprise technology centers and nationally recognized laboratories.

The reach of the company is supported by a large-scale, established distribution and service network. This network moves engines directly to auto OEMs and distributors, providing after-sales support both within China and internationally. To be specific about that global reach, the company has exported engines in bulk to more than 180 countries and regions worldwide. This scale is essential for supporting their diverse product portfolio, which includes diesel, natural gas, and new energy solutions.

Finally, the human capital, represented by skilled engineering and R&D personnel, is substantial. The parent group, Guangxi Yuchai Machinery Group Co., Ltd., currently employs approximately 13,000 employees in total. This workforce supports the design, manufacture, and assembly across their power systems focus. Here's a quick look at the scale of their operations and personnel:

• Total Employees (Group): 13,000
• R&D Bases: 4 (including one in Europe)
• Cumulative Engines Sold: Over 12 million units
• Machining Accuracy Achieved: 0.001mm cylinder bore machining accuracy

If onboarding for new product lines takes longer than expected, the reliance on this existing skilled base becomes a near-term operational risk, defintely.

China Yuchai International Limited (CYD) - Canvas Business Model: Value Propositions

China Yuchai International Limited (CYD) offers value through a diverse and technologically compliant engine portfolio, evidenced by strong recent sales performance.

The core value proposition centers on providing comprehensive, multi-fuel powertrain solutions. This isn't just about one type of engine; China Yuchai International offers a broad range, including traditional diesel, natural gas, and new energy options like pure electric, range extenders, hybrid, and fuel cell systems. This breadth helps capture demand across various regulatory and market needs.

For the heavy-duty commercial vehicle sector, the value is in high-performance engines that are outperforming market trends. In the first half of 2025 (1H 2025), the Company's truck engine unit sales rose by 44.3% year-over-year, and bus engine unit sales increased by 8.9% year-over-year, even as the overall commercial vehicle markets (excluding gasoline- and electric-powered vehicles) saw a decline of 2.6%. Specifically, heavy-duty truck engine unit sales were up 40.7% year-over-year.

A specialized, high-demand value stream comes from engines for data center backup power. China Yuchai International reported selling 1k DC engine units in 1H 2025, which was less than 1% of total volumes, but the firm noted that its 2025 capacity for these DC engines is fully booked. This indicates a high-value, high-demand niche where capacity is maxed out for the current fiscal year.

Compliance is a key value driver, ensuring market access and future-proofing. China Yuchai International's technology has reached advanced levels, with an upgraded Yuchai S04220-61 series engine becoming the first Chinese engine certified by the UN R49.07 Euro VI E stage emission standard. This aligns with the stringent China VI standards, which were fully implemented for all new heavy-duty vehicles by July 1, 2023 (China VI-b). The Company's investment in this area is significant, with Research and Development (R&D) expenses reaching RMB 551.7 million (US$ 77.1 million) in 1H 2025, representing 4.0% of revenue.

The final pillar of value is the reliable, extensive after-sales service and parts supply. China Yuchai International maintains a network of regional sales offices and authorized customer service centers across China and globally, supporting its installed base.

Here's a quick look at the H1 2025 performance that underpins these value propositions:

The growth in off-road segments, specifically marine and power generation, increased by 17.5% year-over-year in 1H 2025, with marine and genset power growing by 31.5%. This shows the multi-market strategy is working. The total number of engines sold in 2024 was 356,586 units.

China Yuchai International Limited (CYD) - Canvas Business Model: Customer Relationships

You're looking at how China Yuchai International Limited (CYD) manages its connections with the buyers of its powertrain solutions. For the big Original Equipment Manufacturers (OEMs), the relationship is deep and personal, which is clearly paying off in the latest numbers.

The dedicated sales and technical support for major OEM clients seems to be the engine driving significant market share gains. For the first half of 2025 (1H 2025), the company's truck and bus engine unit sales jumped by 38.0% year-over-year, even while the broader commercial vehicle market (excluding gasoline and electric) saw a 2.6% decline. This outperformance suggests that key OEM partners are choosing China Yuchai International Limited's products over competitors.

Here's a quick look at how that OEM focus translated into unit sales growth for the first half of 2025:

This data shows that when the market was tough, the company's core OEM customers were actively increasing their orders for China Yuchai International Limited engines. What this estimate hides is the exact revenue split between these top-tier OEM relationships versus smaller customers, but the unit growth speaks volumes.

For strategic expansion, China Yuchai International Limited uses long-term technical licensing and component supply contracts to build deep, multi-year partnerships. A prime example is the comprehensive strategic cooperation agreement signed with Kim Long Motor Hue in Vietnam. This deal grants technology licensing rights for certain engine models over a 15-year period, with total licensing fees set at USD 28 million. This arrangement also mandates that China Yuchai International Limited will supply all engine assembly parts and service kits for the engines manufactured under license in Vietnam.

The transactional sales model for smaller distributors and retailers supports the broader market reach, complementing the high-touch OEM approach. While the group derived 98% of its FY24 revenue from the People's Republic of China, this network is crucial for distributing to the smaller volume buyers and ensuring product availability outside the major assembly plants. The company distributes its engines through an extensive network of regional sales offices.

Finally, maintenance and support are cemented through an extensive authorized customer service centers for maintenance, which supports the reliable after-sales reputation the company has built. This network helps maintain customer satisfaction across China and its expanding overseas markets, ensuring the engines sold-whether directly to an OEM or via a distributor-remain operational and supported.

China Yuchai International Limited (CYD) - Canvas Business Model: Channels

China Yuchai International Limited distributes its powertrain solutions through a multi-pronged approach, focusing heavily on direct engagement with major vehicle manufacturers.

Direct sales force targets major domestic and international OEMs, securing large-volume contracts for light-, medium-, and heavy-duty engines across truck, bus, and off-road applications. In the first half of 2025, China Yuchai International Limited sold a total of 250,396 engines through all channels combined, with truck and bus engine unit sales rising by 38.0% year over year in that period.

A network of regional sales offices spans across China to manage domestic distribution and support. This network works in conjunction with authorized customer service centers to provide after-sales services across the country.

Authorized distributors and retailers handle engine sales and parts distribution, supporting the broad market reach. For the full year 2024, China Yuchai International Limited sold 356,586 engines, solidifying its position as a leading manufacturer and distributor in China.

International subsidiaries are key for overseas market penetration, which is an area of expansion for China Yuchai International Limited. In August 2025, Yuchai Foundry began shipment of key casting products to Germany. Furthermore, in August 2025, one of China Yuchai International Limited's indirect subsidiaries was considering a potential listing on a foreign stock exchange.

Here's a quick look at the geographic and volume metrics related to China Yuchai International Limited's sales channels:

China Yuchai International Limited (CYD) - Canvas Business Model: Customer Segments

You're looking at the core buyers for China Yuchai International Limited (CYD) engines as of the first half of 2025. This company, a leading powertrain solution provider in China, serves distinct industrial and commercial sectors with its wide variety of engines, including diesel, natural gas, and new energy options. The customer base is segmented by the application of the final product the engine powers.

The primary customer segments for China Yuchai International Limited are:

• - Chinese and international commercial vehicle OEMs (trucks and buses).
• - Manufacturers of construction and agricultural equipment.
• - Marine and power generation equipment manufacturers (e.g., data centers).
• - Government and public transportation entities (for bus engines).

The performance across these segments in the first half of 2025 (1H 2025) shows where the demand is strongest. Overall, the total number of engines sold in 1H 2025 was 250,396 units, a 29.9% increase year-over-year, contributing to a revenue of RMB 13.8 billion (US$ 1.9 billion).

Commercial Vehicle OEMs (Trucks and Buses) represent a major component of the customer base. These Original Equipment Manufacturers (OEMs) purchase engines for light, medium, and heavy-duty vehicles. Despite the overall commercial vehicle market (excluding gasoline- and electric-powered vehicles) seeing a 2.6% decline in 1H 2025 according to the China Association of Automobile Manufacturers (CAAM), China Yuchai International Limited captured significant market share in this segment.

Here's a breakdown of the unit sales performance for this segment in 1H 2025:

The company distributes these engines directly to auto OEMs and distributors across China through its extensive network.

Manufacturers of Construction and Agricultural Equipment fall under the off-road category, which saw strong overall growth. This segment includes customers needing engines for machinery used in infrastructure and farming operations. The growth here is broad-based, though agricultural equipment saw more modest gains compared to other areas.

Key figures for the off-road and related industrial segments in 1H 2025 include:

• - Engine sales to off-road markets increased by 17.5% year-over-year.
• - Sales for industrial applications rose by 27.2% year-over-year.
• - Engine sales for agricultural equipment showed modest growth.

Marine and Power Generation Equipment Manufacturers are a high-growth area for China Yuchai International Limited. This segment includes customers building equipment like backup power systems, which has seen a boost from the increased need for data center power infrastructure. This was the fastest-growing area for the company in the first half of 2025.

The specific growth metric for this customer group is:

• - Marine and generator business unit sales increased by 31.5% year-over-year in 1H 2025.

While the core business remains heavily domestic, the company is actively targeting international expansion, which represents a future customer segment growth opportunity. In the preceding full year (FY2024), non-China markets contributed only 2% of sales. The company is specifically focused on deepening its market penetration into the growing ASEAN (Southeast Asian) market.

China Yuchai International Limited (CYD) - Canvas Business Model: Cost Structure

The Cost Structure for China Yuchai International Limited centers on the expenses tied to its manufacturing base and its strategic pivot toward future technologies.

- High cost of raw materials and manufacturing labor.

The cost of goods sold, which includes raw materials and manufacturing labor, is reflected in the gross margin. For the first half of 2025 (1H 2025), China Yuchai International Limited reported a Gross Profit of RMB 1.8 billion (US$ 257.0 million) on Revenue of RMB 13.8 billion (US$ 1.9 billion). This resulted in a Gross Margin of 13.3% in 1H 2025, down from 13.7% in 1H 2024.

- Significant R&D expenditure, rising 21.1% to RMB 476.7 million in 1H 2025.

Research and development expenses were a notable cost component, increasing by 21.1% to RMB 476.7 million (US$ 66.6 million) in 1H 2025, up from RMB 393.6 million in 1H 2024. Total R&D expenditures, which include capitalized costs, reached RMB 551.7 million (US$ 77.1 million) in 1H 2025, representing 4.0% of revenue.

Here's a quick look at the key operating expenses for 1H 2025 compared to 1H 2024:

- Selling, General, and Administrative (SG&A) expenses.

SG&A expenses saw a significant jump, increasing by 27.4% to RMB 962.5 million (USD 134.5 million) in 1H 2025, compared to RMB 755.7 million in 1H 2024. As a percentage of revenue, SG&A expenses were 7.0% for the first half of 2025, slightly lower than the 7.3% recorded in 1H 2024.

- Capital expenditure for new energy production capacity.

China Yuchai International Limited offers new energy products, including pure electric, range extenders, hybrid, and fuel cell systems. The company is supporting future growth with investments, as evidenced by its full 2025 order book for DC engines and plans to increase production by at least 30% for data center applications.

- Costs for maintaining the global service and distribution network.

The company maintains an extensive network of regional sales offices and authorized customer service centers to support its product sales both in China and overseas markets. This network supports operations, including the new production facility in Thailand, Yuchai Machinery Power System (Thailand) Co., Ltd., which commenced production of the K08 engine and other models.

China Yuchai International Limited (CYD) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for China Yuchai International Limited (CYD) as of the middle of 2025. Honestly, the story here is volume and a strong rebound in core business activity.

The primary revenue generator is, as you'd expect, the Sales of engines. For the first half of 2025 (1H 2025), the company shipped a total of 250,396 units. That's a solid increase, showing demand picked up across their segments. This volume translated directly into top-line performance, with total Revenue hitting RMB 13.8 billion, which converts to about US$ 1.9 billion for that six-month period. That revenue figure represents a 34.0% increase compared to 1H 2024, so the growth trajectory is clear. Here's a quick look at how the financial performance stacked up against that revenue:

The engine sales breakdown shows where that growth is coming from. For instance, the truck and bus engine unit sales saw a significant jump, rising by 38.0% year over year in 1H 2025. Also, the marine and generator business segment was the fastest growing, posting a 31.5% increase year over year for the same period. These figures show that while the core market might be shifting, China Yuchai International Limited is successfully capturing demand in specific, high-growth niches.

Beyond the direct sale of complete engines, the revenue model is supported by several other streams. These help stabilize income and capture value across the product lifecycle. You should definitely track these secondary sources:

• - Sales of engine assembly parts and service kits.
• - Technology licensing fees.
• - After-sales service and maintenance revenue.

To give you a sense of their international reach and technology monetization, the company is active in technology transfer, such as the work in Vietnam with Kim Long Motor, where production lines for engines were directly transferred and supervised by Yuchai Group's foreign experts. While I don't have the specific 1H 2025 figure for technology licensing fees, this type of activity, like the reported deal in Vietnam, is a key part of their strategy to expand global presence and generate non-unit-sale income. Furthermore, the company's liquidity position is strong; cash and bank balances surpassed US$ 1 billion at the close of June 2025, which definitely supports investment in these ancillary revenue-generating activities.