Diesel engine manufacturer China Yuchai International Ltd. said its subsidiary, Guangxi Yuchai Machinery Company Ltd., has entered into an equity joint venture Agreement with Zhejiang Geely Holding Group Co., Ltd. and Zhejiang Yinlun Machinery Co, Ltd., to form two joint venture companies in Tiantai, Zhejiang Province, and Jining, Shandong Province. Yuchai will be the controlling shareholder with a 52% stake in both companies. Geely and Yinlun will own 30% and 18% respectively.

The joint venture companies will be engaged primarily in the development, production and sales of a proprietary diesel engine and its parts for passenger vehicles. Geely will develop a prototype of the engine, 4D2.0L, and the joint venture firms will commercialize it, to include Euro-5 certification to meet China's evolving emission standards.