China’s traditional auto production numbers remain impressive while the EV stats are eye-opening. Even well-known home appliance companies are getting in the game to become tier-one EV suppliers. Construction machinery sales keep growing as the next Five-Year Plan ensures construction projects continue to accelerate. The 2020 numbers are in, and China remains the world’s largest manufacturing country with almost 30% of total global value. For other industry intel and tidbits, read on.
The Ministry of Industry and Information Technology (MIIT) released the 2020 data, and the added value of Chinese manufacturing industry reached $4.47 trillion. This represents nearly 30% of total global manufacturing value in 2020.
The China Association of Automobile Manufacturers (CAAM) reports that the production of vehicles for April was up 6.3% from April 2020, with 2.2 million vehicles produced. China produced 8.6 million vehicles in the first four months of the year, which is up 53% from 2020 but only up 2% from 2019, a more typical year. China, like the rest of the world, is suffering from the chip shortage, which directly influences auto production.
New energy vehicle production continues its accelerated pace. April’s production was 216,000 units, an increase of 160% YOY. In the first four months of the year, China produced 750,000 EVs, a 260% increase for the same period in 2020. It is estimated that 1.8 million EVs will be produced this year.
Chinese automobile manufacturer Changan Group plans to invest $22 billion in the next five years in cooperation with Huawei Technology to develop and produce 26 new models of intelligent electric vehicles.
The Guangdong Midea Group, one of the largest Chinese appliance manufacturers, is getting in the EV game and investing in new facilities to produce automotive components for new energy vehicles. They will produce drive systems, heat control management systems, and autonomous systems. Their subsidiary, Midea Welling Automotive Component Co., will produce drive motors, electronic water pumps, electronic oil pumps, electric compressors, and EPS motors.
The China Construction Machinery Association (CCMA) reports that 46,570 excavators were sold in April, an increase of 2.5% YOY. Domestic sales decreased a bit, but exports made up the difference. For the first four months of the year, excavator sales amounted to 173,500 units, a 52% increase YOY. It is estimated that the annual growth rate for construction machinery will remain above 10%.
The construction machinery industry has major growth opportunities with the growing market demands from infrastructure projects, urbanization, and regional development as outlined in the 14th Five-Year Plan from 2021 thru 2025.
The 16th Beijing International Construction Machinery, Building Material Machines, Mining Machines Exhibition and Seminar (BICES 2021) will take place Sept. 14-17, 2021, in Beijing.
