The enlightenment of industrial upgrading behind the rise of XCMG excavators：

From “Made in China” to “Smart Manufacturing in China”

In the global construction machinery industry, the rise of XCMG excavators is a phenomenon worthy of in-depth study. From the first excavator rolling off the production line in 2008 to becoming one of the top three global excavator manufacturers in 2022. XCMG has completed the development process of international giants in just 14 years. Which took decades or even hundreds of years. This achievement not only marks a major breakthrough in China’s construction machinery industry. But also reflects the deep logic of China’s manufacturing transformation and upgrading.

Technological innovation: a leap from following to leading

The technological innovation path of XCMG excavators shows the complete process of Chinese manufacturing companies from technology introduction to independent innovation. In the initial stage, XCMG quickly mastered the core technology of excavators through cooperation with internationally renowned companies. But XCMG did not stop there, but continued to increase R&D investment and established a global collaborative R&D system. Breakthroughs have been achieved in key technical fields such as hydraulic systems and intelligent control. And core components with independent intellectual property rights have been developed.

XCMG’s independently developed “intelligent +” control system has achieved an increase of more than 20% in excavator operating efficiency. And a 15% reduction in fuel consumption. In terms of intelligent technology, XCMG took the lead in launching 5G remote-controlled excavators. To creating a precedent for the intelligent application of construction machinery. These innovative achievements not only enhance product competitiveness. But also promote the improvement of the overall technical level of China’s excavator industry.

The results of technological innovation are directly reflected in market performance. XCMG’s excavator market share in the domestic market has increased from less than 5% in 2010 to more than 30% in 2022. And its share in the international market has also steadily increased. This leapfrog development proves that Chinese manufacturing companies are fully capable of achieving technological breakthroughs in the field of high-end equipment manufacturing.

Intelligent manufacturing: Reconstructing the core competitiveness of the production system

XCMG’s intelligent manufacturing transformation began in 2015. By building a digital factory, it has achieved a comprehensive innovation in the production process. At the XCMG excavator production base, advanced equipment such as intelligent welding robots, automated assembly lines, and intelligent logistics systems constitute a complete intelligent manufacturing system. This transformation not only improves production efficiency, but also ensures the stability of product quality.

The benefits brought by digital production are significant. The production cycle of XCMG excavators has been shortened by 30%, the first-time qualified rate of products has reached more than 99.5%, and the production cost has been reduced by 20%. Behind these data is XCMG’s continuous investment and optimization of the intelligent manufacturing system. Through the industrial Internet platform, XCMG has achieved digital management and intelligent decision-making of the entire production process.

The establishment of the intelligent manufacturing system has enabled XCMG to quickly respond to market demand. Faced with the challenges of cyclical fluctuations in the construction machinery industry, XCMG can adjust its product structure in a timely manner through flexible production to maintain its market competitive advantage. This ability has been fully verified during the epidemic, and the market performance of XCMG excavators has far exceeded the industry average.

Global layout: building a new paradigm for world-class enterprises

XCMG’s internationalization strategy has distinctive characteristics. Unlike simple product exports, XCMG has adopted an integrated global layout model of “R&D + manufacturing + service”. Establishing R&D centers and manufacturing bases in Germany, the United States, Brazil and other places has achieved localized R&D, localized production and localized services.

In terms of international market development, XCMG has adopted a differentiated competition strategy. Develop customized products according to market needs in different regions. Excavators adapted to tropical climates were introduced in the Southeast Asian market, and cold-resistant products were developed in the Russian market. This precise market strategy has continuously improved the competitiveness of XCMG excavators in the international market.

XCMG’s globalization practice has provided valuable experience for Chinese manufacturing companies. By integrating global resources and building an international R&D, production and marketing system, Chinese companies can fully compete with international giants in the field of high-end equipment manufacturing. The success of XCMG excavators proves that Chinese manufacturing is climbing to the high end of the global value chain.

The rise of XCMG excavators is a microcosm of the transformation and upgrading of China’s manufacturing industry. From technological innovation to intelligent manufacturing, from the domestic market to the global layout, XCMG has embarked on a development path of high-end equipment manufacturing with Chinese characteristics. This process shows that as long as we adhere to the development concept of innovation-driven and quality-first. Chinese manufacturing is fully capable of taking a leading position in global competition. Looking to the future, with the in-depth development of a new round of scientific and technological revolution and industrial transformation, Chinese manufacturing companies represented by XCMG will surely usher in a broader development space and contribute more Chinese wisdom and Chinese solutions to the development of the global engineering machinery industry.