China Yuchai International Reports First Quarter 2009 Unit Sales
SINGAPORE, May 12, 2009 China Yuchai International Limited ("China Yuchai" or the "Company"), announced that the total number of diesel engines sold by the Company's major operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") during the first quarter of 2009 was 121,749 units compared with 127,962 units in the same quarter of 2008.
According to the China Association of Automobile Manufacturers, total automobile sales grew by approximately 4.8% in the first quarter of 2009 compared with the same period in 2008. There was notably a strong rebound in March 2009 of approximately 6% compared with March 2008 primarily due to a series of financial stimulus measures introduced in February 2009 by the Central Government of China in response to the global economic crisis, which included cash incentives for the purchase of smaller vehicles as well as for the replacement of agricultural machinery. In March 2009, sales of passenger cars leapt 10.3% from 700,500 to 772,400 but in the commercial sector in which GYMCL concentrates, sales dropped 5.3%. Although GYMCL benefitted from the strong rebound in March 2009 because of its wide range of products in the light and medium-duty sectors which enabled it to maintain its No. 1 ranking in China for unit sales, according to the statistics released by the China Association of Automobile Manufacturers, the proportion of the lower margin 4 cylinder engines sold increased compared to the same period last year. It is to be noted that the full impact on GYMCL's operations arising from the various stimulus measures recently announced by the Chinese government has yet to be assessed.