Qingling Motors, the Hong Kong-listed Chongqing commercial vehicle maker, said on 9 October 2026 that it had agreed to buy about 30.43% of Isuzu (China) Engine Co. from its parent Qingling Group for approximately RMB659.9m.
Why Qingling Motors Co., Ltd. is buying Isuzu (China) Engine Co., Ltd. (IEC) – c.30.43% stake
IEC produces Isuzu diesel and petrol engines and core components, with machining capacity of 141,000 sets and engine assembly capacity of 100,000 units a year. Qingling Motors said the purchase would give it a direct 50% stake in a key supplier alongside Isuzu.
Deal terms and financing
The consideration was set by reference to IEC's net asset value at the valuation benchmark date, appraised by an independent valuer using the asset-based approach, after deducting 2025 distributed profits and the safety reserve, pro rata to the stake. Qingling Motors will pay within 60 working days of the agreement taking effect, funded from internal resources and external financing.
Regulatory approvals and timing
Qingling Group owns about 50.10% of Qingling Motors, making the deal a connected transaction; it is also a major transaction under Hong Kong Listing Rules and requires approval by independent shareholders at an EGM. Rainbow Capital (HK) is advising the independent board committee.
Market context
IEC is currently owned 50% by Isuzu, 30.43% by Qingling Group and 19.57% by Qingling Motors following a capital reduction agreed in March 2026. After completion, Qingling Motors and Isuzu plan to enter a new joint venture agreement.
