A Deep Analysis of the Development Trends in LiuGong Machinery Parts: From Breaking Through the Aftermarket to Leading Globally

I. Strategic Core Shift: The Aftermarket Becomes the Driver of Profit Growth “ Ballast Stone ”

Against the backdrop of China's construction machinery industry shifting from an incremental market to a stock market, LiuGong has positioned its parts business as the core pivot for strategic transformation, aiming to achieve a transition from “ New device sales depend on ”  To “ Deepening the aftermarket ”  A structural breakthrough.

(1) A Fundamental Transformation of the Profit Model

LiuGong's parts business has achieved a gross profit margin of 30% To 50% , far exceeding overall machine sales 15%-25% The level of profitability has become a critical safeguard for companies navigating industry cycles. This transformation stems from profound shifts in market demand: customers no longer simply seek the lowest prices, but instead place greater emphasis on the combined value of component quality and service reliability, creating a competitive edge for companies like LiuGong that possess systematic service capabilities. For instance, the company’s revenue share from out-of-warranty parts and services has steadily increased, breaking through previous trends. “ Free service post-market value ”  The industry's dilemma.

(II) Full Value Chain Extension Across Business Dimensions

Liugong is currently building comprehensive coverage. “ Accessory Supply -  Maintenance and Repair -  Refurbishment and renovation -  Recycling and Reuse ”  A full-lifecycle service system has seen the accessories business evolve from simple product sales to delivering comprehensive solutions. Compared to traditional mom-and-pop shops, “ Backpacker ”  LiuGong has met the sophisticated aftermarket service needs of major customers by standardizing service processes and providing robust technical support, significantly enhancing customer loyalty. This transformation has turned the aftermarket business into a stable revenue stream, ensuring continued growth in parts demand even as original equipment sales fluctuate due to market volatility.

II. Accelerating Global Expansion: Contributions from Overseas Markets “ Half of the Country ”

LiuGong's internationalization journey in the parts business has entered an explosive phase—overseas markets have not only become the primary driver of growth but have also fostered a development landscape marked by distinct regional characteristics.

(1) Explosive Growth in Regional Markets

2025 In the first half of the year, LiuGong's overseas parts sales revenue surged year-on-year. 48% , the annual target completion rate reaches 61% , among which sales in the Russian and Indonesian regions achieved 276%、 200% The explosive growth has seen India's regional single-market sales surpassing 5900  Ten thousand yuan. This achievement was made possible thanks to “ Regional Focus +  In-depth product cultivation ”  Strategy: Tailor and stock up on suitable spare parts tailored to the varying operating conditions of different regions—such as enhancing the temperature resistance of hydraulic system seals for Southeast Asia's tropical zones, and optimizing engine components for reliable cold-start performance in Russia's frigid climates.

(II) Systematic Development of a Globalized Service Network

Liugong is accelerating the expansion of its overseas warehousing and service network, ensuring timely availability of spare parts. “ Localized Response ” Its overseas accessories business has already taken shape. “ Headquarters Coordination +  Regional Collaboration ”  The operational model provides agents with materials including product overviews, repair guidelines, and training resources. “ Marketing Toolkit ” , Feedback from regional agents such as Argentina “ Liugong's parts service response speed far exceeds the industry average. ” As of 2025  This year, the international portion of LiuGong's aftermarket business has surpassed domestic revenue, demonstrating significant success in its global expansion strategy.

3. Deep Penetration of Digital Intelligence: Technology Reshaping the Parts Service Ecosystem

Relying on the LiuGong large model foundation and AI Technology applications and the accessory business are currently achieving a shift from “ Passive Response ”  To “ Proactive Service ”  The intelligent transformation delivers a dual boost in efficiency and customer experience.

(1) AI The service efficiency revolution driven by innovation

Liugong's newly launched AI Expert “ Liu Xiaoyuan ”  It has become a core enabling tool for parts services: By integrating multi-dimensional information such as vehicle operational data and maintenance history, it can quickly pinpoint faults and recommend parts replacement solutions, significantly reducing the repair cycle. In the parts inquiry phase, AI The system can recognize “ Steering wheel ““ Windshield wiper ”  In simpler terms, it automatically matches the correct part numbers, installation locations, and inventory statuses, significantly reducing the likelihood of customers purchasing the wrong or missing items. 60% Above, while simultaneously reducing the demand for human agents from 12  People reduced to 3  People, response time from 10  Minutes compressed to 1  Minutes.

(II) Precision Management of the Digital Supply Chain

Leveraging big data technology, LiuGong has achieved dynamic forecasting and intelligent scheduling of spare parts inventory. In the Indian market, by tracking the entire lifecycle of sold machinery through detailed parts data, the company proactively completes procurement and stockpiling of missing components, significantly improving inventory turnover rates. 35% . This kind of “ Data-driven +  Full-process visibility ”  The management model effectively reduced the risk of impairment caused by excess inventory of parts, addressing challenges in the aftermarket business. “ High initial investment, slow returns ”  The industry's pain points. As of 2025  This year, LiuGong's large-scale model has already been put into service. 5000  More than a dozen internal employees and partners have become the core driving force behind the digital transformation of the accessories business.

IV. Green Circular Development: Building a Sustainable Accessories Ecosystem

In line with the global low-carbon trend and the remanufacturing policy requirements for construction machinery, LiuGong is now shifting “ Green Philosophy ”  Integrate into the full lifecycle management of accessories, opening up new avenues for growth.

(1) Large-Scale Promotion of Remanufactured Components

Liugong has already established a presence in the remanufacturing of complete machines and the refurbishment of spare parts. Core components such as hydraulic pumps and gears, restored through specialized processes, not only reduce costs compared to brand-new products, 40% , and performance meets the original factory standards. This model not only satisfies customers' demand for cost-effective accessories but also enables resource recycling, aligning perfectly with “ Dual Carbon ”  Objective: Currently, its remanufactured parts already cover mainstream models such as excavators and loaders, and their recognition continues to grow steadily in China’s mining and infrastructure sectors.

(II) Technological Breakthroughs in New Energy Components

As the wave of electrification sweeps through the construction machinery industry, LiuGong is accelerating its efforts to develop specialized new-energy accessories. Specifically tailored for electric loaders, excavators, and other products, the company has introduced core components such as highly durable battery cooling pipelines and high-efficiency motor bearings—components that not only perfectly match LiuGong’s own equipment but are also being offered as third-party supplies to the broader industry. 2025 China's construction machinery parts market is expected to reach 9100  Billions of yuan—electrified and intelligent components have become the main driver of growth, as LiuGong’s technological reserves position it to seize this strategic advantage.

V. Trend Summary: The Three Key Words Shaping LiuGong Parts' Future

1. Ecological transformation From selling individual accessories to transitioning “ Product +  Service +  Data ”  Ecological competition will lead to a more diversified profit structure in the aftermarket.
2. Globalization : The share of overseas markets will continue to rise, with region-specific customization and localized services becoming the core of competition;
3. Sustainability : Remanufacturing and new-energy component businesses will become our second growth curve, and green technology capabilities will determine our long-term competitiveness.

As a benchmark for the transformation of the construction machinery aftermarket, LiuGong’s parts business has followed a development path that clearly reflects industry trends: In an era of stock-based competition, those who can deeply unlock the value chain of the aftermarket, leverage technology to enhance services, and expand globally will gain the upper hand in driving sustained growth.