China Yuchai International Limited announced on February 20, 2025, that its main operating subsidiary, Yuchai, entered into a comprehensive strategic cooperation agreement with Kim Long Motor Hue, a subsidiary of Vietnam's FUTA Group. This agreement focuses on technology licenses, component supply, and support for constructing an engine factory in Vietnam.
Under the terms, Yuchai granted Kim Long Motor technology licensing rights for specific engine models, primarily for trucks, buses, and other commercial vehicles in Vietnam. These licenses are valid for 15 years, with total licensing fees amounting to US$28 million.
Kim Long Motor will hold exclusive sales rights for the licensed engines in Vietnam and priority sales rights in other ASEAN countries and South Korea, along with aftermarket service rights in these regions. Yuchai will also supply all engine assembly parts and service kits for the engines manufactured by Kim Long Motor in Vietnam.
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