2024 is already halfway through, and the first wave of pioneers in the Chinese construction machinery industry has released their semi-annual reports. Let’s take a look at what’s new!
Half Year Report of Chinese Top Construction Machinery Giants
Data source: annual report
From the above reports, we can see several key points:
- XCMG still holds a dominant position in the Chinese construction machinery market.
- In the export market, Sany temporarily leads over XCMG, while Zoomlion has the fastest growth rate in overseas markets due to its smaller base.
- The proportion of overseas sales revenue for all three companies is close to or exceeds 50%, with Sany being the most aggressive in its international expansion.
Let’s now look at their overseas strategies as outlined in the annual reports:
- Sany:
- Moving away from a simple product export model and focusing on localized manufacturing in global markets.
- Establishing overseas R&D centers in countries like the United States, Germany, and India.
- In the first half of 2024, the second phase of the Indonesian factory expansion was completed, with key structural components successively put into production, leading to improved production efficiency. The second phase of the Indian factory and the South African factory are under construction, which will enable comprehensive coverage of Southeast Asia, the Middle East, and other regions, further supporting the company’s global strategy.
- Zoomlion:
- Continuously investing in overseas markets, mainly focusing on establishing branches and logistics centers.
- The Italian factory was completed in 2021, covering tower cranes, mobile cranes, aerial work platforms, and forklifts.
- More overseas branches are transitioning from planning to implementation, with several primary branches established. By the end of June, the company had established around 400 overseas branches and nearly 15 overseas bases and factories.
- XCMG Group:
- Expanding from high-end markets in Europe and America to emerging markets worldwide.
- The Brazilian manufacturing base was officially put into operation in 2014.
- Establishing a research and development center in Australia, and setting up research and development centers, assembly plants, sales companies, financing leasing companies, spare parts centers, etc., in the United States.
- With over 40 overseas subsidiaries, more than 300 overseas distributors, and over 2,000 overseas service and spare parts outlets, the marketing network covers over 190 countries and regions globally.
- In 2024, the company established trading subsidiaries in countries such as Japan and Malaysia.
The information above highlights the continuous overseas expansion efforts of these three companies, with Sany being the fastest and most aggressive in its actions. In the coming days, we can explore the international paths taken by these three companies together.
