**Yuchai Remains at the Forefront of China's Automotive Engine Market in June and July** According to the latest data from the China Association of Automobile Manufacturers (CAAM), 53 domestic engine manufacturers reported a total production of 4.5238 million units in the first seven months of this year, with sales reaching 4.5361 million units—marking year-on-year growth of 24.49% and 24.77%, respectively. These figures reflect a strong performance across the sector, despite some fluctuations in overall vehicle demand. While car production and sales peaked in March and April, they saw a slight decline in May, followed by a modest recovery in June and another dip in July. However, the engine market has shown resilience. The vehicle market as a whole experienced a -7.92% year-on-year drop in sales, compared to a -11.65% quarter-on-quarter decline. Passenger car sales fell by -10.45%, while commercial vehicle sales dropped by -14.50%. Despite these challenges, the engine market maintained relative stability, with production and sales growing by -5.61%. Among the top 15 engine producers, companies like Guangxi Yuchai, Changan Group, Liuzhou Wuling, FAW-Volkswagen, Shanghai Volkswagen, Chery, GAC Toyota Engine, FAW Group, Harbin Dongan, Dongfeng Honda, Harbin Dongan Power, Shanghai GM, Beijing Hyundai, Kunming Yunnei, and Shenlong Motors stood out. Some of these firms saw improved rankings compared to May, highlighting competitive shifts in the industry. Looking at average monthly output over the first seven months, six companies produced more than 30,000 units per month, 13 exceeded 20,000, and 24 surpassed 10,000. This distribution shows a relatively balanced market structure, with no single company dominating entirely. The top five engine producers accounted for 29.98% of total output, down slightly from previous months. The top 12 companies had a combined share of 56.97%, also showing a decline. This suggests a more evenly distributed market, with less concentration among the largest players. When measured in "millions of kilowatts," total engine production grew by 34.36%, significantly higher than the 24.49% growth measured in unit terms. This indicates that the shift toward higher-output engines—both for passenger and commercial vehicles—has continued, though at a slower pace than in earlier months. Diesel engines remained a key driver of growth, with production and sales reaching 1,119,700 and 1,119,100 units, respectively, up 30.95% and 30.46% year-on-year. Among the 25 diesel engine manufacturers, six achieved an average monthly output of 10,000 units. Guangxi Yuchai led the rankings with 296,400 units, far ahead of second place. Although its market share dropped slightly to 24.85%, it still held a commanding position. Top-performing diesel engine companies included Weichai, CNHTC, Shandong Laiwu, FAW Group, and others, with growth rates ranging from 32% to over 100%. Only one company, Dongfeng Daochai, reported negative growth. For gasoline engines, cumulative production and sales in the first seven months reached 3,329,600 and 3,343,500 units, up 22.35% and 22.87% year-on-year. This growth matched the performance seen two months prior, signaling a stable market. Top producers included Changan Group, Liuzhou Wuling, FAW-Volkswagen, and others, with the top five accounting for 37.76% of total output. Among large-scale gasoline engine manufacturers, GAC Toyota Motor, FAW Car, Geely Holding, and Dongfeng Nissan showed impressive growth, while some firms like Tianjin FAW Xiali and Beijing Hyundai faced declines. Overall, the Chinese automotive engine market continues to show steady growth, driven by both diesel and gasoline engine demand. While competition remains fierce, leading companies like Yuchai maintain their dominance through consistent performance and innovation.

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