China Yuchai International Limited ("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.

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Singapore

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