The year 2024 has marked a remarkable start for the machinery industry in China, with numerous enterprises reporting significant achievements and a positive trend in production and salesNotably, SANY Heavy Industry Co., Ltd.'s pump division secured an impressive order worth 1.12 billion yuan in January, accompanied by a substantial 50% increase in overseas salesComplementing this successful start, XCMG Group Engineering Machinery Co., Ltd. held a global launch ceremony for high-end open-pit mining equipment on February 5th, featuring an array of classic models including 90-ton, 135-ton, and 400-ton excavators, alongside 130-ton mining trucksThese equipment will be dispatched worldwide, reinforcing XCMG's commitment to its global clientele.

According to Luo Junjie, the executive vice president and spokesperson of the China Machinery Industry Federation, the machinery sector is well-positioned to tackle risks and challenges in 2024. He emphasized that through the implementation of new policies, the industry is set to achieve stable operations overall, with steady progress in high-quality developmentLooking ahead to 2025, he projected a landscape filled with both opportunities and challenges; however, the opportunities will outweigh the drawbacksThe machinery sector aims to cultivate new productive forces, with a strong emphasis on high-end, intelligent, green, and integrated development, maintaining a robust growth trajectory.

The automotive sector, a key segment of the machinery industry, has also reached historic highs, with production and sales figures hitting 31.282 million and 31.436 million units respectively in 2024. This marks the 16th consecutive year that China has led the global automotive market, representing growth rates of 3.7% and 4.5% year-on-yearChen Shihua, deputy secretary-general of the China Automotive Industry Association, highlighted the continuous rise in passenger car production and sales, playing a crucial role in stabilizing the automotive consumption landscape

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Additionally, the booming electric vehicle market, which surpassed 10 million units in production and sales for the first time, now constitutes over 40% of total vehicle sales, indicating a new phase of high-quality development in the industry.

Overall, the machinery industry is witnessing a steady upward trend in production and salesThe first quarter of 2024 revealed positive results, while the second quarter remained stableHowever, the third quarter experienced a slight slowdown, prompting some downward pressure on key indicatorsThe industry demonstrated resiliency, with regulatory measures and policies aiming to stimulate growth showing effects in the fourth quarter as operations began to stabilizeStatistical data reflect that all five macro-sectors of the machinery industry achieved positive value-added growth, with automotive manufacturing leading the charge at 9.1% growthMeanwhile, the electrical machinery and instrument manufacturing sectors exhibited stable growth rates of 5.1% and 6.0%, respectively.

A sector-by-sector analysis indicates that the manufacturing industry is witnessing a rebound in the processing equipment segmentIn 2024, the production of metallic cutting machine tools totaled 695,000 units, a year-on-year increase of 10.5%, while metallic forming machine tools produced 160,000 units, marking a growth of 7.4%. According to Mao Yufeng, the executive vice chairman and secretary general of the China Machine Tool Industry Association, new emerging industries continue to generate demand, underscoring the robust growth potential of high-end products within the machine tool sectorSome enterprises that are proactively embracing new productivity models, maintaining high-quality standards, and innovating their technology, are achieving impressive growth even in challenging circumstances.

Moreover, general equipment and basic components are exhibiting a positive growth trajectory in 2024. Products such as pumps, fans, compressors, bearings, fasteners, hydraulic components, and metal sealing components have all experienced increased production, signaling strengthening service capacities within the broader manufacturing landscape

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This broad-based growth highlights renewed signs of recovery across the entire manufacturing industry.

In terms of international trade, China's machinery industry has made substantial strides towards optimizing its export structure, reinforcing a diversified foreign trade marketIn 2024, total goods trade in the machinery sector has reached historic highs, with import and export totals surpassing 1.17 trillion USD and a trade surplus of nearly 570 billion USDAccording to customs data, this marks the fourth consecutive year that machinery goods trade exceeded the trillion-dollar mark, representing a year-on-year growth of 7.5%—accounting for 19% of China's total goods trade.

Innovation and technological advancements are pivotal to the industry's continual progressionIn 2024, over 80 machinery enterprises were included in China's first batch of exemplary intelligent factory projectsSix of these factories gained recognition as global "lighthouse factories," bringing the total count to 24—accounting for 30% of China's total recognized facilitiesDigital tools for research and development are now utilized in over 80% of large-scale enterprises, with average research cycle times for demonstration factories reduced by nearly 30%. This commitment to digital transformation and innovation is deemed crucial for fostering new momentum in the machinery industry.

As stated by Chen Shihua, the automotive industry is witnessing continuous improvements in the resilience and security of its supply chainFor instance, the sales of domestically branded passenger cars reached 17.97 million units in 2024, reflecting a robust 23.1% growthThis surge has been fueled by technological innovation, product upgrades, and a meticulous understanding of local market demandsChinese automotive enterprises are intensifying investments in new energy and smart connectivity sectors, rolling out competitive products that have garnered consumer approval.

The rapid evolution of intelligent manufacturing equipment has also played a significant role in this transformation

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In 2024, the production of industrial robots in China surged by 14.2% to 556,000 units, marking yet another recordSong Xiaogang, secretary of the China Machinery Industry Federation and executive vice chairman of the robotics branch, highlighted the continuous advancements in robotics technology and its applicationsAs new technological paradigms, especially artificial intelligence, permeate robotics, collaborative innovation between these domains is projected to be a critical trend moving forward.

This year has also seen breakthroughs in significant technological equipment, such as the independent development of a 300-megawatt F-class heavy gas turbine, achieving groundbreaking progress with over 90 key technological advancementsFurthermore, the rollout of the "Shanhe" and "Jianghai" super-large diameter shield tunneling machines, exceeding 16 meters in diameter, represents a new milestone for China in this specialized sphere.

In terms of sustainability, 2024 has proven to be a pivotal year for China's transition to a greener, low-carbon economyOn October 12, 2024, the China Dongfang Electric Group successfully launched a 26-megawatt offshore wind turbine—the world's largest in terms of single-unit capacity and with the longest diameter of any turbine blades, showcasing China's progress across the wind power equipment supply chain.

Luo Junjie remarked that the green low-carbon transformation of the machinery industry is both critical for development and a cornerstone for advancing new industrializationAs clean energy equipment proliferates, there has been a significant uptick in the development of energy-efficient technologies, with wind power generation taking a prominent position in new installationsIn 2024, wind energy accounted for more than half of the total generator output, with renewable energy installations achieving a growth rate of 23% and dominating new electricity generation installations.

Additionally, traditional industries have accelerated their green transformation efforts, introducing advanced green intelligent products

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