The engineering machinery sector plays a pivotal role in the overall equipment manufacturing industryRecently, during a press briefing at the China (Beijing) International Engineering Machinery, Building Material Machinery, and Mining Machinery Exhibition, the president of the China Construction Machinery Industry Association, Su Zimeng, highlighted the impressive resilience and adaptability of this industry in the first half of the yearDespite various challenges and fluctuations in the international market, the sector has maintained a steady operation with solid high-quality development and remarkable advancements in high-end, intelligent, and green innovations.

The question that arises is how the engineering machinery market is faring both domestically and internationally, what new characteristics are emerging, and what is the outlook for the second half of the year? To gain clearer insights, a thorough investigation was conducted.

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According to data from the China Construction Machinery Association, in the first half of the year, sales of 12 major machinery categories included a total of 969,000 units—a growing figure of 4.58% compared to the previous yearOf these, 597,000 units were sold domestically, marking a 0.31% increase, while international exports reached 372,000 units, achieving a growth rate of 12.3%.

Su Zimeng noted that with the prompt execution of macro-control policies, there has been a noticeable recovery in the sales of excavators and loaders, which are intimately linked to infrastructure developmentFollowing a series of challenges earlier in the year, excavator sales in the domestic market have seen a positive growth trend consistently each month since May, indicating a clear rebound.

A particularly interesting aspect of this dynamic is the continuation of steady growth in export values, despite a higher base figure leading into the year

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Since 2020, consistent increases in export figures for Chinese engineering machinery have been notedStatistics from customs show that the total trade volume of imports and exports for this sector amounted to $31.746 billion from January to July this year, a 3.63% increaseWhile the import amount dropped by 1.39% to $1.527 billion, the export figures rose by 3.89% reaching $30.219 billion.

The transition from merely exporting products to establishing a global industrial presence is notableAlthough there is a general slowdown in overseas demand, niche markets still demonstrate robust appetiteChinese engineering machinery enterprises are actively seeking to grow their overseas business, aiming for simultaneous increases in performance and profitabilityWith an eye on long-term global development, these companies are evolving from sole product exporters toward establishing a comprehensive global industrial layout.

According to Xiang Wenbo, chairman of SANY Heavy Industry Co., Ltd., the paradigm is shifting from product exports to industrial output on a global scale

"With this shift, we hope to enhance international operations through the optimized allocation of resources," he stated, underlining the drive to better satisfy personalized needs of global clients and foster sustainable global operational capabilities.

The industry is also undergoing a transformation towards high-end and intelligent machineryRecent innovations have emerged, such as the autonomous excavation technology researched collaboratively by senior teams from SANY and Shanghai Jiao Tong UniversityTheir latest E-GTN framework employs terrain feature extraction and multi-modal fusion technology alongside reinforcement learning and large model architectures to improve decision-making capability and environmental adaptability significantlyThis technological advancement paves the way for increased automation and intelligence within the excavating sector, leading to safer, more efficient, and precise operations.

Moreover, beyond rapid movement towards smart machinery, notable growth has been observed in electric engineering equipment, including electric loaders and forklifts

Recently, Liugong delivered the first batch of electric loaders equipped with the Lan Jun New Energy 324Ah battery system to an industrial park in Central Sulawesi, Indonesia, marking a significant milestone in their collaborative technology applications aimed at automating and electrifying operationsThis move not only accelerates green energy transformation but also illustrates a significant step towards cutting energy costs, thereby enhancing operational efficiency while combating emissions.

With the engagement of intelligence and low-carbon strategies, the engineering machinery sector is gaining fresh momentum for sustainable growthAlthough certain areas face market demand pressures, industry players are overcoming multiple adverse impactsThey are responding with enhanced core competitiveness to cater to the high-end, diversified, and personalized market needs, thereby positioning themselves advantageously in the competitive landscape of the future among digital transformations, smart upgrades, and the adoption of greener manufacturing practices.

Statistics from the China Construction Machinery Industry Association lucidly indicate that electric loaders experienced a sales surge of 361% this year, averaging 5,114 units sold in the first half

Electric forklifts saw sales of 469,000 units, indicating a 24.2% increase from the previous year, capturing 70.8% of total sales in the segmentMore than 90% of operating platforms are now electricAs capabilities in battery, electric drive, and control systems improve significantly, mass production and usage of electric non-road dump trucks, excavators, cranes, bulldozers, and concrete machinery are becoming a reality.

Su Zimeng further emphasized the swift development of China's new energy engineering machinery, which has now established a robust technical support system, laying a solid foundation for broader applications aheadHowever, he also pointed out that companies must confront challenges, such as the insufficient integration of new energy machinery within usage scenarios, the slow cultivation of industrial chains, underdeveloped battery technology, weak charging infrastructure, and inadequate service maintenance capabilities.

In terms of growth potential, a recent report released on August 27th by Yingfeng Environmental Technology Group highlighted that the company’s revenue reached 6.233 billion yuan in the first half of this year—a 1.64% increase year-on-year—and a net profit of 381 million yuan, marking a growth of 2.05%. Their business in smart city services showed particularly strong growth with revenues of 5.408 billion yuan, exhibiting a 4.80% increase, reflecting substantial growth potential across sectors.

Looking ahead, Su Zimeng envisions a consistent consolidation of the recovery dynamic within the Chinese economy, which continues to foster a stable operational environment for the engineering machinery industry and encourage high-quality development

With heightened macro-control efforts and cumulative policy impacts, especially regarding large-scale equipment renewal, effective market demand is set to be unleashed in this sector as the developmental environment improves progressively.

Research from Fangzheng Securities similarly indicates that the speed of bottoming out for the engineering machinery industry is expected to accelerate in the latter half of the yearDomestically, small and medium-sized excavators have shown signs of recovery, while internationally, the operating hours in regions involved in the Belt and Road Initiative remain robustThis creates a favorable scenario for leading companies with strong localization and channel advantages.

Despite increasing adverse influences due to changes in the external environment, the international acknowledgment of Chinese engineering machinery enterprises for their technology, products, and services is growing