Implement large-scale equipment renewal actions, implement detailed support policies, effectively stimulate the potential of equipment renewal, turn "opportunities" into "opportunities", and promote high-quality development of the Chinese economy

Recently, the China Construction Machinery Association released data: In March, 15188 excavators were sold domestically, a year-on-year increase of 9.27%. As the most widely used and advanced construction machinery, excavator sales are regarded as a barometer of the prosperity of the construction machinery industry.

In recent years, influenced by factors such as the adjustment of the real estate market and industry cycles, the construction machinery industry has entered the stage of digesting inventory, and sales of some types of products have slowed down, putting pressure on enterprise production and operation. In 2023, excavator sales had a negative year-on-year growth rate for 12 consecutive months. After turning positive in January of this year, they fell again to negative values in February. Therefore, the sales performance of excavators in March has attracted much market attention.

The growth rate of 9.27% far exceeds the 6.5% predicted by industry institutions, effectively boosting market confidence. Through "9.27%", we can see the recovery of fixed assets investment. Since the beginning of this year, the policy of stabilizing investment has continued to increase efficiency, and various regions have focused on the construction of major projects, launching a batch of high-quality and profitable projects. In the first quarter, infrastructure investment increased by 6.5% year-on-year, with a growth rate 0.2 percentage points faster than from January to February. In March, the business activity index of the construction industry rose to 56.2%, and the overall expansion of the construction industry accelerated, continuously releasing demand, and the construction machinery industry gradually recovered.

Through "9.27%", we can also see the momentum brought by large-scale device updates. Observing the stock market of construction machinery, the proportion of excavators, loaders, forklifts, and road rollers with national standard products of level 2 or below in 2023 is about 20-30% of the total stock. Most of these devices were put into the market around 2016, and based on an 8-year service life, they have just entered the update phase this year. In this context, the implementation of large-scale equipment updates will accelerate the pace of updates in the construction machinery industry, allowing market potential to be quickly transformed into real demand. Many construction machinery companies have stated that in the next five years, the industry is expected to leverage the momentum of equipment replacement to achieve a dual increase in sales and profits.

Not only in the construction machinery industry, but after years of development, many of China's machinery and equipment have ranked first in the world in terms of ownership, and the demand for equipment updates and replacements continues to rise. Accelerating the development of new quality productivity and continuously promoting new industrialization also requires improving product quality, enhancing production efficiency, and shaping competitive advantages through the enhancement of equipment performance. In 2023, the scale of equipment investment in the national industrial sector reached 4.4 trillion yuan, a year-on-year increase of 8.7%, accounting for more than 70% of the total equipment investment in society. Overall, there is ample room and potential for device updates, and calculations show that it will bring a huge market with an annual scale of over 5 trillion yuan. This will create considerable development space for equipment manufacturing enterprises, benefiting enterprises in fields such as industrial mother machines, agricultural machinery, motors, transformers, and industrial robots.

At the same time, it should be noted that the main body of equipment updates is the enterprise. Currently, the global economic growth momentum is insufficient, and the foundation for China's sustained economic recovery and improvement is not yet stable. Some enterprises are concerned about the large investment in equipment updates