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Deep Decoding | Why XCMG Can Maintain a Top Three Position Globally

Deep Decoding | Why XCMG Can Maintain a Top Three Position Globally
XCMG News | Jun 25, 2023
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On June 1st, renowned global construction machinery industry information group KHL's authoritative magazine "International Construction" released the Yellow Table rankings, and Chinese manufacturer XCMG secured the third position. XCMG has also become the only Chinese construction machinery manufacturer to consistently rank among the top three globally for three consecutive years.

According to the rankings, the total sales of the top 50 construction machinery manufacturers in 2022 reached $230.6 billion, one of the highest figures in the history of the list. XCMG has maintained its position as the third-largest global construction machinery manufacturer due to its high-quality products and services, as well as its internationally diversified layout across the entire industry chain.

The global construction machinery manufacturing industry has been impacted by factors such as increased raw material and labor costs in the past few years, with labor shortages and supply chain issues being the main reasons for inadequate product supply. Therefore, countries around the world have been pushing forward economic stimulus plans, accelerating the release of global construction machinery demand. This has provided a valuable opportunity for XCMG to ignite new momentum and compete on the world stage.

"To ignite new momentum, we must seek development impetus from technological innovation, digital transformation, green transition, and international markets. XCMG aims to strengthen and enhance the 'core competitiveness' of China's construction machinery industry by fully integrating into global competition," firmly stated Mr. Yang Dongsheng, Chairman of XCMG Group and XCMG Machinery.

Technological Innovation

Accelerating the achievement of high-level technological self-reliance is the only way to promote high-quality development. In the fluctuating global construction machinery market, XCMG has consistently adhered to the "technology innovation" as its main strategy, continuously leading the construction machinery industry in the global market.

In 2017, XCMG ranked seventh globally. Over the years, XCMG has focused on innovation-driven development and increased investment in scientific research. In the field of thousand-ton-level crane products, XCMG has already achieved complete independent research and development capabilities, leading the world in significant innovation.

At XCMG, numerous domestically produced flagship heavy equipment have been successively launched, including the "World's No.1 Crane" with a lifting capacity of 2,600 tons, a 700-ton hydraulic excavator, the world's largest rigid rear-drive mining truck XDE440, a 15,000-ton-meter global super large tower crane, and a 35-ton loader. Furthermore, nearly a thousand key core technologies and a batch of critical core components have been continuously breakthrough, adding significant contributions to the path of independent innovation.

Intelligent and Digital Transformation

Currently, XCMG regards Intelligent and Digital Transformation as its top priority, striving to promote deep integration between manufacturing and the digital economy, and becoming a powerful engine for empowering high-quality development in the manufacturing industry.

In 2022, XCMG accelerated its pace in green and intelligent transformation. It deepened its green development strategy, continuously expanded its range of new energy electrified products, and covered over 300 models in nine major categories of new energy construction machinery. The annual revenue increased by 135%. Sales revenue of new energy heavy-duty trucks grew by 352%, maintaining a leading position in the industry. In 2022, XCMG added two intelligent factories, three benchmark factories for industrial Internet, and four demonstration intelligent workshops. The engineering machinery industry cluster, represented by XCMG, is driving the national construction machinery industry chain to compete in the global market.

Global Industrial Chain

From May 16th to 21st, the 5th XCMG International Customer Festival opened, where customers from around the world witnessed new products, new technologies, and a complete value chain experience in the field of construction machinery. The large-scale gathering of overseas customers demonstrates XCMG's strength in going global and the confidence in attracting foreign investment.

In recent years, XCMG has risen strongly and become a mainstream participant in the industry, continuously enhancing its global industry status. Public data shows that in 2022, XCMG North America achieved a year-on-year sales growth of 230% and a product sales volume increase of 300%. In the first quarter of 2023, XCMG's international revenue exceeded 10.6 billion yuan, setting a record high for a single quarter.

The construction of XCMG's global complete value chain system of "research, production, supply, sales, service" promotes XCMG to contribute to the local construction and infrastructure of each factory.

Currently, XCMG products have been exported to over 190 countries and regions worldwide, with research and development centers, manufacturing bases, and assembly plants established in more than ten countries including Germany, Brazil, the United States, and India. XCMG is accelerating the implementation of the complete value chain system of "research, production, supply, sales, and services," exploring competitive differentiation points and value creation areas, providing customers with one-stop system integration services, overall contracting operations, and comprehensive solutions. This strengthens the linkage effect of domestic and international market resources and forms a new development model characterized by multi-form interaction and integration.

Renewal of Enterprise System

In 2022, XCMG successfully completed its overall listing, injecting high-quality assets such as excavators and mining machinery, and establishing a more market-oriented and legalized modern corporate system. With its scientific enterprise management capabilities, XCMG continues to lead the industry's development, and the capital market welcomes the "New XCMG."

Looking back at the past year, XCMG achieved higher quality development across all sectors, once again surpassing 100 billion yuan in operating income. The construction machinery sector demonstrated its advantages in system layout and strengthened resilience. The market share of 22 main machine types increased by 1.19 percentage points, and the crane machinery maintained its position as the global leader. Excavation machinery continued to improve its market position, piling machinery solidified its foundation, and road machinery made an impact as the preferred choice worldwide. The strategic emerging industries flourished, with a year-on-year revenue growth of 28.8%, becoming a new growth point.

Securing a spot in the top three of the "2023 Top 50 Global Construction Machinery Manufacturers" is another milestone for XCMG. It builds upon the continuous optimization and improvement of the traditional product line while actively exploring a diversified development pattern to meet market demands. With XCMG Machinery's restructuring and overall listing, XCMG is advancing towards a higher and more updated global track, sprinting towards a magnificent future with full force.