Siemens' China Strategy Pays Off: Q2 Automation Orders Surge Amid Manufacturing Renaissance

Recently, Siemens released its second quarter financial report for fiscal year 2025 (ending March 31, 2025). The report shows that Siemens demonstrated strong market performance in Q2 FY2025, with orders for its automation business in China achieving significant growth.

This positive trend not only reflects the effectiveness of Siemens' business strategy but also confirms the enormous potential and vitality of China's automation market.

source: Siemens

According to the financial report, in Q2 FY2025, excluding the impact of currency fluctuations and portfolio changes, Siemens' revenue grew by 6% to €19.8 billion. Profit from industrial business increased by nearly one-third to €3.2 billion, benefiting from the company's excellent operational capabilities and a €300 million gain from the sale of the Smart Infrastructure Group's residential electrical business. The overall profit margin for industrial business was 16.9%. Net income increased by 11% to €2.4 billion.

Particularly noteworthy is that new orders increased by 9% on a comparable basis to €21.6 billion (approximately RMB 175 billion). Among these, order growth in the Chinese market for automation was especially significant, benefiting from Chinese customers having essentially depleted their high inventory levels by the end of the quarter, becoming an important driver for Siemens' overall business growth.

In contrast, automation orders in the German market declined significantly, and new orders for Electronic Design Automation (EDA) software were lower than the same period last year.

Furthermore, the book-to-bill ratio showed strong performance at 1.10. As of the end of Q2 FY2025, Siemens' total backlog of high-quality orders reached €117 billion, laying a solid foundation for achieving the fiscal year 2025 performance targets.

Beyond the depletion of high inventory levels by Chinese customers, the substantial growth in Siemens' automation orders in China can be attributed to multiple factors. At the product and R&D level, Siemens has actively responded to Chinese market demands.

In March 2025, Siemens held its "China Acceleration 2.0!" launch event in Shanghai, introducing 18 cost-effective products designed and manufactured by local R&D teams, covering core automation areas such as PLC, variable frequency drives, servo drives, and virtual commissioning, including products like S7-1200 G2++ and SMART LINE V5. Among these, 16 new products were entirely developed locally.

These new products feature superior performance and more competitive pricing after localization, greatly enhancing Siemens' product compatibility and market competitiveness in China's automation market. They effectively meet the diverse needs of Chinese customers and are expected to make significant contributions to attracting future orders.

Additionally, changes in the Chinese market environment have created opportunities for Siemens' automation business. As China's manufacturing sector accelerates its digital transformation and intelligent upgrading, demand for industrial automation continues to grow. Particularly in industries such as automotive, semiconductor, and lithium batteries, demand for automation equipment and solutions is showing rapid growth.

For example, in the automotive industry, the widespread application of automated production lines helps improve production efficiency and ensure product quality. The semiconductor and lithium battery industries urgently need high-precision, high-reliability automation equipment to meet their complex production process requirements. With its advanced automation technology and rich industry experience, Siemens has successfully won numerous project orders.

Recently, Siemens secured an important order from Shanghai Metro to provide traction systems, auxiliary systems, and train control systems for Line 22 vehicles.

Against the backdrop of positive business development, despite increasing economic uncertainties, Siemens has confirmed its performance guidance for fiscal year 2025.

Looking ahead, Siemens is expected to achieve even better results in the automation business sector through its favorable development trends and continued investment in the Chinese market. As China's manufacturing industry deepens its intelligent upgrading, demand in the automation market will maintain stable growth, and Siemens will continue to benefit from this market trend.