Hong Leong Asia expects diversifying engine product mix to improve margins

INDUSTRIAL conglomerate Hong Leong Asia will better position itself for growth by looking beyond trucking and catering to other engine sectors, chief executive Stephen Ho said in an analyst briefing on Thursday (Feb 29).

The strategic shift comes amid weaker demand in China for its powertrain solutions unit, China Yuchai International. The subsidiary primarily sells engines in the Chinese market.

Pre-Covid, the Chinese market used to move an average of 1.3 million heavy-duty trucks a year. This fell to 700,000 units in 2022, and 900,000 units last year.