From this point of view, construction machinery and agricultural machinery are naturally closely related, and this connection is so tight that the thin "barrier" between them seems ready to be easily broken at any time. The editor noted that many leading enterprises in both industries seem very willing to pierce this layer of window paper to achieve cross-industry development.
From agricultural machinery to construction machinery, a natural progression?
In 2012, the total output value of China's agricultural machinery industry exceeded 300 billion yuan, making it the world's largest agricultural machinery market. Although some analyses say the industry is in the "Spring and Autumn period of feudal lords contending," we can see that the output value of the top five agricultural machinery manufacturers accounts for more than 70% of the entire industry. To some extent, the moves of the three giants—Foton Lovol, YTO, and Chery Heavy Industry—directly influence the industry's changes.
It is worth noting that none of these three dominant giants in the agricultural machinery industry focus solely on agricultural machinery; all of them have entered the construction machinery industry without exception.
YTO Group is one of the few enterprises in the agricultural machinery industry with an output value exceeding 10 billion yuan. It is the birthplace of China's first tractor, first road roller, and first military off-road vehicle. After more than 50 years of development, YTO has become a large comprehensive equipment manufacturing enterprise group with agricultural equipment, construction machinery, power machinery, automobiles, and parts manufacturing as its main businesses. In early 2008, 67% of YTO's equity was transferred to China National Machinery Industry Corporation (Sinomach) for free. After restructuring, YTO made strategic adjustments, focusing on developing main products such as agricultural equipment, construction machinery, automobiles, and diesel engines.
Foton Lovol established its Agricultural Equipment Division in 1998. In 2012, it produced and sold 124,000 agricultural machinery products, with sales revenue of 7.62 billion yuan, and its market share in the four major businesses of wheat harvesters, rice harvesters, corn harvesters, and tractors all ranked first in the industry. In the first half of 2013, Lovol Agricultural Equipment sold nearly 80,000 units of various products, with sales revenue exceeding 6 billion yuan, continuing to lead the industry. In the field of construction machinery, since entering in 2004, over the past decade, Foton Lovol Heavy Industry's three major businesses—loaders, excavators, and rotary drilling rigs—have steadily advanced and have become a force to be reckoned with in the industry.
Chery Heavy Industry's sales are expected to exceed 5 billion yuan in 2013, achieving a "tripartite division" in the industry. It has now formed 10 major platforms and 280 product resources, including tractors, rice transplanters, seedling raising machines, harvesting machinery, grain drying machinery, and agricultural implements, becoming the enterprise with the widest range of agricultural equipment and the richest product resources in China. At the 2012 Bauma China exhibition in Shanghai, Chery Heavy Industry made a high-profile appearance with more than 10 construction machinery products, vigorously expanding its construction machinery sector. Its products cover multiple business areas such as excavators, mining vehicles, forklifts, and port machinery. It has now formed a global sales network centered on the Chinese market and covering more than 300 overseas dealers.
Of course, the performance of these three giants in the construction machinery field is far from comparable to their achievements in agricultural machinery, but they have basically gained a foothold and carry the momentum of "leading the pack" in the agricultural machinery field. Who would dare underestimate their future prospects?
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