On November 30, Financial Associated Press reported (journalist Huang Lu) that "this hydrogen fuel chassis pump truck can be driven by hydrogen energy + lithium battery in a combined or independent manner during driving and operation, truly achieving zero emissions," stated a staff member from Zoomlion (000157.SZ) on site.

A business representative from Sany Group pointed at the nearby area and said to Financial Associated Press, "That blue area is all Sany's electric vehicles."

From November 26 to 29, bauma CHINA 2024 (Shanghai International Construction Machinery, Building Materials Machinery, Mining Machinery, Engineering Vehicles, and Equipment Expo, abbreviated as "Shanghai bauma Exhibition") was held at the Shanghai New International Expo Center. Compared to previous years, this year's Shanghai bauma Exhibition featured construction machinery products equipped with a "dynagreen environmental protection group" package, observable at various brand manufacturers' exhibition areas.

As the "three electrics" technology continues to mature, key components like batteries and electric machines have become the "new forces" contending for the electricization market pattern of construction machinery. This year, the bauma CHINA exhibition has introduced a new "new energy technology" display theme, successfully attracting contemporary amperex technology, Fudi Battery, and China Power Investment Corporation to showcase together, further promoting cross-industry collaboration between new energy companies and construction machinery manufacturers.

In recent years, the development of electric construction machinery in china has been particularly rapid, with the construction machinery industry researching and manufacturing various electric, hydrogen energy, and hybrid new energy construction machinery for use in mining, ports, tunnel construction, logistics, and warehousing sectors, said Wu Peiguo, Secretary General of the China Construction Machinery Industry Association, at a forum held during the exhibition. "Especially the electric loader, which can be said to stand out. Moreover, the electrification rates of trucks and lift platforms are already quite high. Forklifts are primarily lithium battery forklifts, with electric forklifts accounting for 72.8% of total sales from January to October this year."

Industry insiders told Financial Associated Press that the current global electrification rate of construction machinery is not high, but with future technological breakthroughs and full cost reductions, the electrification penetration rate is expected to exceed 30%. Domestic manufacturers have a first-mover advantage in electrification and are likely to be the first to benefit from the wave of electrification.

At this year's shanghai bauma exhibition, in the green exhibition area, the iconic products showcased by XCMG Group, such as the world's largest pure electric loader XC9108EV and the world's first pure electric mining grader GR350EP, won waves of admiration from the on-site audience for their outstanding energy efficiency and operational efficiency. In addition, XCMG also displayed a full range of electrified products in areas such as port machinery, road machinery, mining machinery, and aerial work machinery.

It is understood that XCMG focuses on pure electric and hybrid technology routes, showcasing 48 green main machine products, accounting for 42%.

Another domestic machinery giant, SANY Group, set up a new energy product exhibition area for the first time at this year's bauma exhibition, with the theme of "Zero Carbon Future," gathering 31 new pure electric, battery swap, plug-in, towable, and hydrogen energy electrified products.

Taking forklifts as an example, SANY's electric forklifts ranging from 2t to 46t made their debut and were launched for the first time, covering 11 different tonnage products, achieving full coverage of all working conditions and scenarios. SANY Marine General Manager Chen Jing introduced at the launch ceremony that the trend of electrification in the industry is obvious, with electric forklift sales growing at an annual rate of 18%. Facing such a huge potential market, SANY either does not enter, but if they do, they aim to be among the top two in the world.

Zoomlion also added a new energy technology display themed area. A series of products created in combination with 'greening' technology were showcased, with nearly 20 green new energy products, accounting for about one-quarter, covering various new energy technologies across all product lines, and including several globally innovative new energy products.

In addition to electric vehicles occupying the central position, new energy models powered by hydrogen energy, methanol, and other sources were also showcased, including SANY's hydrogen energy heavy-duty truck Chang Kong 200, Zoomlion's world's first hydrogen energy pump truck, and XCMG's XG955KM methanol loader...

A related person in charge from a major exhibitor told a reporter from Cai Lian She that technological innovation is accelerating the electrification of construction machinery, and major manufacturers are actively seeking to establish new competitive advantages in overseas markets. Electrification may become a key part of their global layout. The sales areas will focus on Europe and the belt and road initiative concept regions.

Last year, when XCMG accepted institutional research, it revealed that the company's new energy products have covered nearly all product areas on sale, including automotive cranes, loaders, aerial work platforms, sanitation vehicles, front lifts, rollers, and pavers, involving three main technology routes: pure electric, hybrid, and hydrogen fuel cell. New energy products account for about 10% of revenue, and the goal for the next step regarding new energy products is to achieve a revenue proportion of 25% by 2027 and 35% by 2030.

Not only XCMG, but also during on-site communication, a reporter from the Financial Alliance learned that major companies are increasing their investment in new energy equipment, with a long-term goal of having new energy products account for 35%, which is the direction that several major machinery companies in the country are working towards.

As an energy-intensive and emission-heavy industry, the construction machinery sector has accelerated its electrification transformation in recent years against the backdrop of the "double carbon" policy. According to relevant predictions, China's pure electric construction machinery market is expected to reach a tipping point between 2025 and 2026.