In recent years, with the domestic demand for construction machinery contracting and nearing a bottom, exports have become a crucial growth driver for the industry. Overseas sales now account for a significant portion of total revenue for leading enterprises, helping offset domestic revenue shortfalls and boosting profitability. Companies with strong export performance are poised to maintain stable operations amidst industry fluctuations.

I. Rising Export Revenue and Overseas Market Growth

Although the growth rate of construction machinery exports has slowed in 2024, export volumes remain at historic highs, underpinning the industry's stability. According to customs data, from January to October 2024, China’s construction machinery exports reached $43.31 billion, a year-on-year increase of 6.12%. In October alone, exports surged by 23.8%, totaling $4.608 billion.

Financial reports from major listed companies highlight improving performance. Many firms reported net profit growth, largely attributed to opportunities in overseas markets.

• SANY Heavy Industry reported overseas revenue of ¥23.542 billion in the first half of 2024, up 4.79%, accounting for 62.23% of its main business income. The company attributes this success to its global, digital, and low-carbon strategies, as well as its growing portfolio of intelligent and sustainable products.

• Zoomlion also saw remarkable growth, with overseas revenue in the first three quarters reaching ¥17.644 billion, up 35.42% year-on-year, contributing 51.31% of total revenue. The company noted significant growth in regions such as the Middle East, Southeast Asia, and South America.

• XCMG recorded a gross profit margin of 24.41% in overseas markets during the first half of 2024, outperforming the domestic market by 2.72 percentage points. Its overseas revenue accounted for 44% of total income, up 3.37 percentage points year-on-year.

II. Emerging Opportunities in Overseas Markets

China’s construction machinery has achieved global recognition, with significant progress in both product exports and global strategic layout. The following regions present substantial growth opportunities:

1. Russia
   With its rich mineral resources and active mining and petroleum industries, Russia maintains high demand for construction machinery. Due to geopolitical factors, Chinese brands have replaced Western competitors, with exports to Russia increasing 66.5% year-on-year to $6.058 billion in 2023. Despite a slowdown in 2024, stable fixed-asset investments and robust oil exports are expected to sustain long-term growth.

2. India
   According to the Indian Construction Equipment Manufacturers Association (ICEMA), equipment sales in Q2 2024 grew by 31% year-on-year. Experts predict the Indian construction machinery industry will exceed historical highs by the end of the fiscal year, driven by rapid infrastructure development and urbanization.

3. Indonesia
   As China's third-largest export market for construction machinery, Indonesia’s mining sector and urbanization efforts continue to drive demand. The Indonesian government has allocated ¥198.45–¥238.75 billion for infrastructure projects in 2024, including the construction of a new capital city, ensuring sustained demand for construction machinery.

4. Malaysia
   Malaysia’s plans to build 500,000 affordable housing units by 2025 and enhance transportation links with neighboring countries are expected to boost demand for construction machinery.

5. Middle East
   Countries like Saudi Arabia and the UAE are experiencing an infrastructure boom. Saudi Arabia’s NEOM project, with a total investment of $500 billion, exemplifies this trend. From 2020 to 2023, Chinese construction machinery exports to Saudi Arabia grew at a 64.7% compound annual growth rate, highlighting the region’s strong demand.

III. Risks in Expanding Exports

While overseas markets present immense opportunities, they also pose significant challenges:

1. Global Market Downturn
   The global construction machinery market is expected to shrink by 8% in 2024, reducing demand to 1.08 million units. Intense competition from international giants with advanced technology and strong branding adds to the pressure on Chinese companies.

2. Trade Protectionism
   The rapid growth of Chinese exports has led to trade barriers in some countries. For example:

   • India has imposed a 5-year anti-dumping duty on Chinese wheel loaders.
   • The EU has launched anti-dumping investigations on Chinese aerial work platforms.
   • The UK is conducting anti-dumping and anti-subsidy investigations on Chinese crawler excavators.

3. Market Saturation and Domestic Competition
   With shrinking domestic demand, more Chinese manufacturers are turning to overseas markets, intensifying competition. This “export-or-die” mentality risks creating a price war among Chinese brands abroad.

China’s construction machinery exports have transitioned from a period of rapid growth to one of steady development, marked by new challenges and risks. To ensure long-term success, Chinese enterprises must:

• Deepen localization strategies.
• Enhance the differentiation of products and services.
• Strengthen collaboration with international partners.

With these efforts, Chinese construction machinery companies can achieve sustainable growth and continue to solidify their presence on the global stage.