In 2024, China’s engineering machinery industry showed signs of recovery after a prolonged downturn. Excavator sales, considered an industry "barometer," reversed a two-year decline, while domestic sales ended a three-year slump, signaling optimism. Overseas markets remained strong, with several enterprises reporting overseas revenue contributions reaching 50%.
Experts anticipate the industry entering an upward phase of a new cycle. The significant potential in international markets, coupled with the global expansion capabilities of Chinese companies, makes overseas markets a critical focus for domestic brands.
Signs of Recovery
According to the China Construction Machinery Industry Association (CCMA), major excavator manufacturers sold 19,369 units in December 2024, a 16% year-on-year increase. Domestic sales rose by 22.1% to 9,312 units, while exports increased by 10.8% to 10,057 units.
For the full year, excavator sales reached 201,131 units, marking a modest 3.13% growth. Domestic sales increased by 11.7% to 100,543 units, reversing three consecutive years of decline, while exports fell slightly by 4.24% to 100,588 units.
Loader sales also reflected a positive trend, with 108,209 units sold in 2024, up 4.14% year-on-year. While domestic loader sales declined by 3.94% to 54,326 units, exports surged by 13.8% to 53,883 units.
The domestic excavator market’s turnaround was notable. From 2021 to 2023, sales plummeted from 270,000 units to 90,000 units, with declines of 6.32%, 44.6%, and 40.8%, respectively. In 2024, domestic excavator sales rose by 11.7%, reaching 100,543 units. Although volumes remain below the 2021 peak, the growth indicates a recovery in market demand.
A representative from XCMG highlighted signs of stabilization, particularly in earth-moving machinery, which has posted consistent growth in recent months. Policies such as trillion-yuan special government bond projects and large-scale equipment renewal initiatives are expected to further support recovery.
Industry leaders remain confident, citing investment growth, the rising penetration of new energy machinery, and natural equipment replacement demand as driving factors.
Accelerating Global Expansion
China’s engineering machinery enterprises continued to enhance global market capabilities in 2024. Customs data revealed total exports of USD 47.817 billion from January to November, a year-on-year increase of 7.16%. Many enterprises saw overseas revenue contributions rise, with some reaching 50%.
Looking ahead to 2025, companies such as SANY Group and Zoomlion have prioritized international growth. SANY plans to implement a "globalization, digitalization, and decarbonization" strategy, while Zoomlion aims to further develop its localized overseas operations and offer advanced solutions to global clients.
Supportive Policies and Long-Term Growth
Favorable policies continue to boost the sector. The National Development and Reform Commission (NDRC) and the Ministry of Finance recently announced plans to expand large-scale equipment renewal programs in 2025. The initiative is expected to stimulate demand for replacing older machinery, especially those meeting lower emission standards.
Lu Ying, Deputy Secretary-General of CCMA, emphasized the positive impact of such policies, coupled with ongoing industry upgrades in product quality and a shift toward high-end, large-scale equipment. These developments are expected to sustain the recovery and drive long-term growth.