Guangxi Yuchai Group, the world's largest diesel engine producer, is considering listing its engineering machinery business, said Group Chairman Yan Ping.

"The assets may be listed in Chinese mainland or Hong Kong, but due to the current performance of global stock markets, it's not the right time to launch IPO in the near future," China Securities Journal quoted Yan as saying.

The group runs six core businesses: diesel engines, engineering machinery, auto parts, auto-use chemical products, electro mechanics and special vehicles.

Guangxi Yuchai Machinery Co Ltd, a subsidiary of Yuchai Group, was listed in the United States in 1994.

Yan said diesel engine orders of Yuchai Group witnessed a sharp increase during the first two months of 2009. Orders in February reached a historic high of 65,000 sets. Yan estimated a sales increase of 10 percent this year.

Yan also said the Group will invest 25 billion yuan ($3.65 billion) in expansion and technology upgrades over the next five years, of which 3 billion yuan will be invested this year.

In 2008, Yuchai Group realized business revenue of 20.8 billion yuan, with a 50 percent market share of high-end diesel engines in China.