XCMG and LiuGong: Changes in Construction Machinery Aftermarket with 'Diesel to Electric' Services

August 05,2026      51cm.com

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Content Validity:Hello, let's explore the recent changes in the construction machinery market. Historically, the focus on sustainability was on new electric machinery. However, a new trend is now emerging: retrofitting existing diesel equipment with electric drives, known as ""oil to electric"" conversions. Take XuGong as an example; they've established ""oil to electric"" as a value-added service for their aerial work platforms. They provide customized solutions for various scenarios, with a standardized process for key components like power and electric systems. XuGong has even set up dedicated service centers in Chengdu, Xi'an, and Guangdong to ensure local modifications and on-site acceptance. Another player, LiuGong, has listed ""oil to electric"" as an official solution on their website. They focus on power system reconstruction, energy system upgrades, and intelligent control, offering customized designs for excavators, loaders, and mining trucks. So, why the sudden interest in retrofitting? Well, with the maturing new energy market, many construction companies are recalculating the costs. Instead of scrapping old but structurally sound machinery, a power system upgrade can be more cost-effective. Plus, with tightening environmental regulations and a growing focus on lifecycle costs, ""oil to electric"" is becoming an attractive option for extending equipment life. Despite the demand, most manufacturers are still on the sidelines. Why? The business model and service network constraints play a significant role. New machine sales are the lifeblood for these companies, and ""oil to electric"" conversion is more of an after-sales service than a strategic direction. In conclusion, as the market moves towards more standardized and mature practices, ""oil to electric"" is emerging as a significant part of the construction machinery aftermarket. With manufacturers like XuGong and LiuGong leading the charge, this trend is set to reshape the industry's future.