Backed by Guangxi-based Yuchai Machinery Company Limited, the leading manufacturer and distributor of diesel engines in China, Guangxi Yulin city aims to build the largest diesel engine and auto-parts production facility in China.

Yuchai showed robust growth in 2007. Diesel engine sales surged by 42.3% year on year(y/y) to 504,100 units with sales revenue up 29.46% to 18.35 billion yuan ($2.67 billion). For the year to date, Yuchai has gained the top engine output among the industry in seven consecutive years.

Also, during the first half of 2008, Yuchai's diesel engines sales soared 33.09% y/y to 349,000 units, with sales revenue up by 37.5% y/y to 12.259 billion yuan, achieving 53.3% of the annual target.

Guangxi province will serve as a large-scale auto production base in southern China by 2012, said Ma Biao, president of Guangxi Zhuang Autonomous Region.