XCMG plans to invest $150 million to build a factory in India

　　2017 is XCMG's "India Year"
　　In January 2017, Wang Min, Chairman of XCMG Group, announced that XCMG would invest $150 million to build a factory in India. "The Indian market has great potential. 2017 is XCMG's India Year. We will select XCMG's advantageous products and vigorously promote market development in India." As a leader in China's construction machinery industry, XCMG Group has always attached importance to developing the Indian market. In recent years, XCMG established XCMG India Machinery Co., Ltd., responsible for providing local customers with high-quality XCMG products and spare parts support. XCMG India Schwing, located in Chennai, is responsible for concrete machinery manufacturing and has provided nearly 1,100 local jobs. According to the editor of China Construction Machinery Business Network, leveraging XCMG Group's unique brand advantages, products such as XCMG horizontal directional drilling rigs have been widely recognized in the Indian market. In particular, the XZ200 and XZ320 special models developed by XCMG Foundation for the Indian market have performed impressively. In June 2017, XCMG's largest tonnage horizontal directional drilling rig, the XZ6600, achieved its first export to India.

Excavators manufactured by Sany India

　　Sany's "Made in India" radiation effect continues to strengthen

　　If counted from its first entry into the Indian market in 2002, Sany has been cultivating the Indian market for 16 years. Data shows that in 2016, Sany India's sales reached nearly 1 billion yuan. In the first quarter of this year, sales were nearly 400 million yuan, a year-on-year increase of 90%. At the same time, "Made in India" has fully penetrated the five neighboring countries of Bangladesh, Nepal, Bhutan, Sri Lanka, and Maldives. According to the editor of China Construction Machinery Business Network, Sany India's consistent adherence to product localization and talent localization is the cornerstone that has helped Sany India win the market and stride overseas. In 2010, Sany's first overseas factory was put into operation, opening up a localized development path in India that integrates investment, design, production, sales, and service. In recent years, Sany India has made significant progress in the localization of excavators, truck cranes, and pumping products. On April 28, 2017, the 4,000th unit produced by Sany India rolled off the assembly line at the Pune Industrial Park. Now, facing the best period of opportunity, Sany India will also actively integrate into new projects such as wind power and residential industrialization, helping Sany's "Made in India" reach a new level.

Zoomlion's Indian subsidiary once conducted operator training for India's Reliance Group

　　Equipment is needed, but operators are even more needed. Compared with the overseas factory construction of the former two, Zoomlion's deepening "localization" in India takes a different approach. According to the editor of China Construction Machinery Business Network, recently, Zoomlion's Indian subsidiary signed an education and training project with the Indian government, joining hands with the Indian government's Government Industrial Training Institute (GITI) to jointly conduct training for construction machinery operators and related technical businesses, becoming the first enterprise to cooperate with the Indian government on a construction machinery training project. It is expected that this year, 400 professional crane operators will be output to the local construction machinery market. It is reported that Zoomlion's Indian subsidiary was established in 2009 and has a complete local sales and service management system, as well as a parts center warehouse with a scale of more than $500,000. In 2016, the Indian subsidiary built a new training center. The training center is fully functional, equipped with power systems, chassis transmission systems, electrical systems, hydraulic systems, computer monitor systems, and professional platform equipment such as hydraulic operation platforms and QUY450-ton crawler crane simulators. It can provide various systematic professional training for operators, maintenance personnel, and engineers. The "localization" training work is deeply implemented and integrated into the after-sales service system. Zoomlion's deep cooperation with India through education and training this time has become another microcosm of deepening "localization" and entering the local market.

　　LiuGong: Taking root in India and growing rapidly
　　LiuGong India is the first wholly foreign-owned company in India's construction machinery industry. Since production began, the Indian factory first served as an assembly base for LiuGong 3-ton and 5-ton loaders. In 2012, the motor grader series was put into production. In 2014, the 2-ton loader was put into production. In the following years, LiuGong gradually increased parts manufacturing and further realized the localization of complete machine production. At present, the localization rate of the Indian factory has reached 30%, including all steel parts, tires, rims, hoses, hydraulic parts, etc., while also using engines produced by Cummins' Indian factory. LiuGong well understands that both the healthy operation of the Indian factory and the development of aftermarket business cannot be separated from sufficient parts reserves. LiuGong has an advanced parts warehousing management system. Relying on its dealers widely distributed across Indian markets, LiuGong can timely and accurately deliver parts to end customers. Through daily observation of parts response speed and consideration of influencing factors, the parts team continuously improves its services. In 2016, LiuGong received the "Best Foreign Investor" award from the Indian government. LiuGong Chairman Zeng Guang'an said: "This is because over the past 10 years, we have adhered to the localization development strategy and extensively trained Indian employees to participate in factory management; culturally, we treat Indian and Chinese employees equally and respect each other's habits and beliefs; in development, we not only abide by local laws and regulations but also fulfill our development obligations by fulfilling social responsibilities. Today, more than 70% of contractors in India are LiuGong's major customers. I think this is the best interpretation of the achievements we have made in India."
　　Weichai India: A bridgehead in the South Asian market
　　Weichai began planning its layout in India in 2011, establishing Shandong Heavy Industry India. After three years of exploration, in 2014 it successfully established an engine production plant in an asset-light manner, achieving the goals of starting production that year and making a profit the next year. In 2015, the Indian company entered a stage of both production and sales prosperity. Currently, the Indian company has become Weichai's bridgehead in the South Asian market. In the next 3-5 years, Shandong Heavy Industry's Indian factory will focus on improving production capacity, team quality, and after-sales service levels, fully participate in the competition in the Indian engine market, and extend its business to the Indian Ocean Rim market. Through comprehensive localization measures, it will grow into an Indian local enterprise with unique core competitiveness.
　　In addition to deepening "localization," many construction machinery enterprises also regard India as an important export market. Shandong Lingong's loader sales in India achieved double-digit growth, repeatedly setting new records; Zhejiang Dingli shipped more than 80 aerial work platform products to India and Qatar; Shantui's fully hydraulic bulldozers successfully entered the Indian market; "Made in China" has won the favor of more and more Indian customers with its excellent product quality and service.
　　Industry insiders said that since 2015, driven by factors such as strong economic growth, stimulus reform measures, and continued growth in domestic demand, India's domestic environment has improved, and the construction machinery market has continued to grow. In 2016, the scale of India's construction machinery market increased by 1.4% year-on-year to $7.81 billion, and it is expected to continue to grow by 2.3% year-on-year to $7.98 billion in 2017. It is expected that from 2018 to 2022, the average annual growth rate of this market will reach 4.2%. With the continuous deepening of exchanges between China and India, Chinese enterprises, with both the hard power of overseas factory construction and the soft power of training services, will increasingly participate in the competition in India's construction machinery market.