HCMC – Kim Long Motor Hue JSC and China’s YUCHAI JSC have started building a US$260 million auto engine manufacturing plant in the central city of Hue, the local media reported.
Kim Long Motor and YUCHAI signed a comprehensive strategic partnership on August 23, marking a significant step for Vietnam’s auto industry. The new plant, part of the Kim Long Motor Hue Industrial Complex, will focus on high automation, with up to 90% of processes automated.
The facility will produce various engines for the automotive industry, including diesel and compressed natural gas (CNG) engines and electric motors, with annual output of over 12,000 units in its first phase. The plant is expected to be operational by the second quarter of 2025.
The initial phase of production will also include engines for marine vessels, power generators, agricultural machinery, and civil engineering equipment. The subsequent phase will focus on investing in the production and manufacturing of axles, transmissions, and drivetrains for automobiles.
The plant aims to serve both domestic and export markets, including ASEAN countries and South Korea. Kim Long Motor also unveiled a new sleeper bus model equipped with the YUCHAI K11 engine, developed by its engineering team in Hue.
The Kim Long Motor Hue Industrial Complex, which includes facilities for manufacturing and assembling passenger cars, trucks, and parts, has already produced nearly 300 vehicles since February 2024, providing jobs for around 1,800 workers.
