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AAC WORLDWIDE %u2022 2.2025 NEWS & MARKET 27large production capacities and group-based strategies have stood out during this stage. In terms of equipment, the market increasingly demands higher production efficiency, energy-saving measures for AAC production lines, and automation to reduce labour costs.%u00a0\-Zero Factory\This refers to the goal of achieving a modern factory with zero purchased electricity, zero fossil fuels, zero primary resources, zero carbon emissions, zero waste discharge, and zero employees. Against the backdrop of China's AAC industry pursuing high-quality development, the \commitment to environmentally friendly production but also embodies corporate social responsibility. By introducing advanced production technologies and management systems, China's AAC industry is gradually moving toward this vision, striving to ensure production capacity while achieving green, safe, and sustainable development. The realization of this vision will grant Chinese AAC enterprises greater influence and competitiveness in the global market.%u00a0India AAC market: From emerging to thrivingSince its introduction to India in the 1970s, AAC has gradually gained attention, particularly after 2009, due to its high strength, excellent thermal insulation, fire resistance, sound absorption, and cost advantages. Currently, India's AAC market is experiencing rapid growth, especially under the impetus of large-scale urbanization, with production capacity increasing 25-fold over the past 15 years.%u00a0Fly ash resource utilization strategyIndia's electricity supply relies heavily on thermal power, resulting in abundant fly ash resources. 95% of Indian AAC enterprises use fly ash as their primary raw material (with incorporation rates exceeding 80%), providing significant raw material cost advantages.%u00a0Favourable tax policiesAccording to a December 2024 report, India%u2019s Goods and Services Tax (GST) Council clarified the tax rate for AAC blocks at its 55th meeting. Specifically, AAC blocks containing over 50% fly ash will be subject to 12% GST. Typically, AAC blocks are subject to 18% GST, while bricks or blocks containing over 90% fly ash enjoy a preferential 5% rate. This policy clarification reduces the tax burden on AAC products containing 50% fly ash, further lowering the price of these products. %u00a0%u00a0Technical pathways and market challenges: Lessons learned from China and India %u00a0%u00a0China: Overcapacity and high-end breakthroughs %u00a0%u00a0Structural contradictions: In 2023, the industry's capacity utilization rate was only at 75%, with fierce price wars in the low-end product markets (e.g., B06-grade blocks) and small and medium-sized enterprises (SMEs) facing elimination. Meanwhile, high-end markets (e.g., composite AAC panels and low-density blocks) face supply shortages, reflecting structural imbalances in the industry. SMEs, lacking technological innovation and financial strength, tend to Keda Suremaker provided the main production equipment for the Renacon Project, while local Indian manufacturers supplied some auxiliary equipment, and together they completed the project construction.