Challenges and growth of China’s construction machinery industry in overseas expansion in H1 2024

Industry Overview: In the first half of 2024, China’s construction machinery industry remained in a bottoming-out phase due to the ongoing adjustments in the real estate market and other factors. Export growth slowed, and trade frictions limited exports to certain regions. However, most listed construction machinery companies managed to achieve positive revenue and profit growth by reducing costs and improving efficiency.

Performance of Leading Companies: Leading companies like XCMG, Sany Heavy Industry, and Zoomlion expanded their market share, with increased contributions from overseas revenue. Despite weak domestic demand, these companies still managed to maintain profit growth.

Importance of Overseas Markets: The expansion of overseas markets has become a key factor in mitigating cyclical fluctuations in the industry. Leading companies’ international presence gives them an advantage in the global market, with products like excavators and loaders gaining increased market share abroad.

Future Outlook: With the domestic market entering a period of equipment replacement and policy support, the construction machinery industry is expected to experience a “dual-cycle resonance,” driven by large-scale equipment upgrades and industry-wide renewal, further boosting domestic demand in the second half of the year.

Indicative Role of the Excavator Market: Excavator sales are seen as a barometer for the industry’s health, with forecasts indicating a 9% year-on-year increase in sales for August 2024, with domestic sales showing particularly strong growth, signaling signs of recovery in the domestic market.

Overall, despite facing challenges, the construction machinery industry has achieved steady development in the first half of the year by actively expanding overseas markets and optimizing internal operations.

3 Sep 2024 reported by Machinery News