China's machinery sector registered steady growth across key economic indicators in the first half, underpinned by strong performance in the automotive and electrical machinery segments, said the China Machinery Industry Federation (CMIF) on Monday.

In the January-June period, the added value of industrial enterprises above a designated size in the machinery sector rose 9 percent year-on-year, outpacing the national industrial and manufacturing averages by 2.6 and 2 percentage points, respectively, said the federation.

Notably, the automotive and electrical machinery sectors recorded robust growth of 11.3 percent and 12.2 percent, respectively, leading the industry's expansion and playing a vital role in stabilizing the broader economy and boosting industrial momentum.

"The combined impact of existing macroeconomic policies and the latest round of the 'two new' policy has helped improve domestic demand, contributing to a better-than-expected industrial landscape compared to the same period last year," said Luo Junjie, CMIF's executive vice-president, adding that of the 122 key products tracked by the federation, 84 reported year-on-year output increases, accounting for 68.9 percent of the total, a 7.4 percentage point rise from a year earlier.

The "two new" policy involves large-scale equipment upgrades and trade-ins of consumer goods.

Luo highlighted that the stable growth in automobile production and sales serves as a key driver propelling this growth momentum.

The China Association of Automobile Manufacturers said that in the first half, China produced 15.62 million vehicles and sold 15.65 million units, marking year-on-year increases of 12.5 percent and 11.4 percent, respectively. New energy vehicles also continued their upward trajectory, with production and sales reaching about 6.97 million and 6.94 million units, up 41.4 percent and 40.3 percent year-on-year.

The CMIF said a notable milestone was reached in NEV market penetration, which hit 44.3 percent in the first half — an all-time high for the period.

China's NEV penetration rates have been climbing steadily in recent years, with several months exceeding the 50 percent threshold.

The China Passenger Car Association said that this year, the NEV retail penetration rate has steadily gone above 50 percent from March to June, reaching 51.1 percent, 51.5 percent, 53.0 percent and 53.3 percent, respectively. July's rate is expected to climb further to 54.6 percent, marking the fifth consecutive month above 50 percent.

On the trade front, Luo said the sector demonstrated resilience amid increasingly complex global conditions and rising external pressure.

In the first half, foreign trade in the machinery sector maintained solid momentum, with exports to major economies recording double-digit growth, CMIF data showed.

Specifically, exports to other Belt and Road economies surged 23.9 percent year-on-year, while shipments to other Regional Comprehensive Economic Partnership member countries rose 16.7 percent. Exports to the European Union grew 12.3 percent, and those to ASEAN countries jumped 24.2 percent.

Among major trading partners, exports to the United States decreased 3.3 percent year-on-year in the first half, while exports to Russia dropped 18.2 percent. In addition, exports to Germany, Japan, and South Korea grew steadily by 11.6 percent, 2 percent and 5.3 percent, respectively. Exports to Southeast Asian markets such as Vietnam, Thailand and Indonesia posted growth of over 20 percent, CMIF data showed.