KIM LONG MOTOR OFFICIALLY INAUGURATES VIETNAM’S FIRST ENGINE MANUFACTURING PLANT

The ceremony was attended by leaders from departments and agencies of Hue City, representatives of YUCHAI Group, valued domestic and international partners and customers, along with a large number of central and local press agencies.

 

The YUCHAI Engine Production & Manufacturing Plant—the first of its kind in Vietnam—has been invested and built with the largest and most modern scale in the country, covering a total area of 6.5 hectares. It operates under a smart management model with advanced production lines and strict quality control processes following YUCHAI Group’s technical standards. The plant is capable of manufacturing diverse engine lines serving the automotive industry and various industrial sectors.

In Phase 1, the plant completed 2.5 hectares with a total investment of USD 260 million, reaching a capacity of more than 40,000 engines per year—equivalent to completing one engine every three minutes. Targeting an automation rate of up to 90%, the plant applies a series of advanced technologies: JIS (Just-in-Sequence) combined with AGVs that automatically deliver materials and components in precise sequence; Vietnam’s first Precision Assembly Robot system integrating sensors, machine vision, control, and data tracking to ensure near-perfect stability and accuracy. The entire line operates on a Smart Factory platform (MES – IIoT – Robot Traceability), enabling 100% technical data traceability for each engine code, along with digital twin simulation technology to optimize robot trajectories and processes before real-world operation.

Entering Phase 2, KIM LONG MOTOR and YUCHAI Group will continue investing heavily in automated machining lines for core engine components and localizing mounting brackets and support parts. A forging–stamping-based casting and blank manufacturing plant will also be put into operation, gradually completing a large-scale industrial support ecosystem within the KIM LONG MOTOR Automotive Manufacturing & Assembly Industrial Park in Hue.

Speaking at the event, Mr. Đào Viết Ánh – CEO of KIM LONG MOTOR – emphasized: “The synchronized operation of the YUCHAI Engine Production & Manufacturing Plant, the large-scale stamping plant, and the supporting industrial factories will create a major breakthrough in Vietnam’s domestic industrial manufacturing capability. This industrial complex is the key to achieving our target of 80% engine localization, elevating technological autonomy, and turning the KIM LONG MOTOR Hue Industrial Park into a leading automotive manufacturing hub in Southeast Asia.”

This event marks a breakthrough for Vietnam’s automotive industry as KIM LONG MOTOR successfully cooperates in localizing and manufacturing engines entirely within the country. The technological production lines at the plant were directly transferred and supervised by YUCHAI Group’s international experts and senior engineers, ensuring synchronized operation and optimal performance.

Speaking at the inauguration ceremony, Mr. Li Hanyang – Chairman of YUCHAI Group – affirmed: “This is a milestone of special significance in the cooperation journey between Vietnam and China in industrial equipment and high-tech manufacturing. The completion and operation of this plant not only marks the establishment of Vietnam’s first professional automotive engine plant but also lays a solid foundation for enhancing production capacity and strengthening the brand values of KIM LONG MOTOR and YUCHAI in Vietnam and the ASEAN region.”

According to Mr. Li Hanyang, the plant will become the “heart” of Vietnam’s automotive industry in the future, contributing to the development of internationally competitive “Made in Vietnam” automotive products. The cooperation between KIM LONG MOTOR and YUCHAI represents not only economic significance but also a shared strategic vision, strengthening bilateral relations and opening new opportunities for future achievements.

At the event, KIM LONG MOTOR officially rolled out its first two engines—YUCHAI K11 and YUCHAI Y24—entirely manufactured at the YUCHAI Engine Production & Manufacturing Plant. The YUCHAI K11 engine delivers up to 410 horsepower with a displacement of 10,979 cc, currently used on premium KIMLONG 99 sleeper and seated buses. The YUCHAI Y24 engine features a 2,360 cc displacement and 110 horsepower, designed specifically for light trucks, tractors, and KIM LONG’s new-generation minibus models, meeting demands for stable performance, fuel efficiency, and long-term durability.

In the coming period, the plant will continue expanding its product portfolio with new engine models such as YUCHAI A07N, YUCHAI S04, YUCHAI S07, and YUCHAI K12L to support KIM LONG MOTOR’s commercial vehicle production. It will also target exports to South Korea, ASEAN markets, and the Middle East.

Speaking at the event, Mr. Phan Quý Phương – Vice Chairman of Hue City People’s Committee – highly appreciated the YUCHAI Engine Plant project, emphasizing that it marks a breakthrough not only for KIM LONG MOTOR but for Vietnam’s entire automotive industry, contributing to the implementation of the National Automotive Industry Development Strategy under the Prime Minister’s Decision No. 1168/QĐ-TTg dated July 16, 2014. The project creates momentum to attract supporting industries, contribute to economic restructuring, increase budget revenue, and generate local employment.

To achieve long-term strategic goals, KIM LONG MOTOR affirms its commitment to continued investment in automation and digitalization of production lines, enhancing manufacturing capacity, and strengthening sustainable strategic cooperation with YUCHAI Group to deliver high-quality engines that meet domestic demand and expand globally.

The official operation of the YUCHAI Engine Production & Manufacturing Plant demonstrates KIM LONG MOTOR’s long-term vision, strategic roadmap, and determination—contributing to making Hue City a key industrial center of Central Vietnam and driving the strong rise of Vietnam’s mechanical and automotive industries in the “New Era – The Era of National Advancement.”