Ground Breaking Ceremony for New Facility Construction

-- To Build First Chinese Diesel Engines for Rapidly Growing Passenger Vehicle
Market --

SINGAPORE, March 31 /Xinhua-PRNewswire-FirstCall/ -- China Yuchai
International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), the
leading manufacturer and distributor of diesel engines in China, announced
that, on March 15, 2008, its subsidiary Guangxi Yuchai Machinery Co., Ltd.
("Yuchai") held a ground breaking ceremony for the construction of the new
production facility for Jining Yuchai Engine Company Limited, one of the joint
venture companies to be formed with Zhejiang Geely Holding Group Co., Ltd.
("Geely") and Zhejiang Yinlun Machinery Co., Limited ("Yinlun"). Senior
management from Yuchai, Geely, Yinlun as well as municipal government
officials from the city of Jining, Shandong Province, attended the ceremony.
The shareholders of Jining Yuchai Engine Company Limited ("Jining Yuchai")
are Yuchai, Geely and Yinlun with a shareholding of 52%, 30% and 18%
respectively, and a total registered capital of RMB150 million (approximately
US$21 million). Jining Yuchai will build up its production lines for diesel
engine blocks and cylinder heads with the focus on producing environmentally
friendly, 2 litre diesel engines for passenger vehicles to meet the strict
standards for Euro V emissions. This project will manufacture the first
domestic Chinese brand diesel engines for passenger cars.
Jining Yuchai is located in the hi-tech development zone of Jining City
where currently more than 1,000 industrial enterprises are located. In order
to attract investment, Jining's local government is offering preferential
policies, subsidies and tax benefits.
Diesel engines have already achieved strong penetration in the European
passenger vehicle market and the passenger vehicle market in China is
experiencing new development. Safety, energy efficiency and environmental
friendliness have gradually become key features for consumers in their
selection of vehicles. Further, given more government policies on energy
saving and pollution reduction, diesel engines for passenger vehicles, which
help to solve these issues, are well positioned for strong long-term growth in
the Chinese passenger vehicle market.
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 the 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

Kevin Theiss / Dixon Chen of The Global Consulting Group, +1- 646-284-9409, or
ktheiss@hfgcg.com, dchen@hfgcg.com