In terms of market demand and production scale, China's gear industry has surpassed Italy in the global ranking, ranking fourth in the world.
       In 2006, all China's gear, transmission and drive parts manufacturing enterprises achieved a cumulative total industrial output value of 102,628,183 thousand yuan, an increase of 24.15% over the same period of the previous year; a cumulative product sales revenue of 982,382,400 yuan, an increase of 24.37% over the same period of the previous year; and a cumulative total profit of 56,652,100 yuan, an increase of 26.85% over the same period of the previous year.
       From January to December 2007, the cumulative industrial output value of all gear, transmission and drive parts manufacturing enterprises in China was 136,542,841 thousand yuan, an increase of 30.96% over the same period last year; from January to October 2008, the cumulative industrial output value of all gear, transmission and drive parts manufacturing enterprises in China was 144,529,138 thousand yuan, an increase of 32.92% over the same period last year.
       Compared with developed countries, China's gear manufacturing industry still has problems such as insufficient independent innovation capabilities, slow new product development, disordered market competition, weak corporate management, low informatization, and the overall quality of employees needs to be improved. At this stage, the gear industry should increase industry concentration through market competition and integration, forming a group of large, medium and small-scale enterprises with assets of several billion yuan, 500 million yuan, and 100 million yuan; through the design and development of independent intellectual property products, form a group of leading enterprises for vehicle transmission systems (gearboxes, drive axles assemblies), and use the supporting capabilities of the leading enterprises to integrate the capabilities and resources of the gear industry; achieve professionalization and networked supporting, and form a large number of distinctive processes, distinctive products and enterprises with rapid response capabilities; through technical reforms, realize the transformation of modern gear manufacturing enterprises.
  From 2006 to 2010, 100,000 new equipment will be added, that is, approximately 6 billion yuan will be invested in new equipment each year, and 20,000 new machine tools will be purchased, with an average unit price of 300,000 yuan each. By 2010, China's gear manufacturing industry should have a total of about 400,000 machine tools of various types, including 100,000 CNC machine tools, with a CNC rate of 25% (higher than the average of 17% for the entire machinery manufacturing industry).