Industry experts said that due to the surge in demand caused by the domestic economic recovery, from March to May this year, China's construction machinery sales (especially the sales of excavators) have experienced rapid growth.
According to data from the China Construction Machinery Industry Association, sales of excavators in China reached 31,700 units in May, a year-on-year increase of 68%. Sales in March and April were 49,400 and 45,400 respectively, setting a record in recent years.
"The rebound in excavator sales in March was unexpected, and the growth momentum continued in April. This shows that the construction machinery industry has stepped out of the haze of the new crown pneumonia epidemic and ushered in a peak season. It is expected that annual excavator sales will increase by 10% year-on-year." A report from AVIC Securities said.
Another report from Anxin Securities pointed out that the development stage of the industry has improved. Various construction machinery is in short supply.
Due to the increasing counter-cyclical policies, infrastructure investment is expected to maintain an upward trend, which will further boost the industry.
Qi Jun, president of the China Construction Machinery Industry Association, said that despite the impact of the new coronary pneumonia epidemic in many industries, the continued expansion of infrastructure projects across the country, such as the China Railway Group Corporation network, will effectively support the sales of domestic construction machinery companies.
He added that this will drive sales for most companies in the second quarter of this year.
Construction machinery manufacturer Sany Heavy Industry said that from January to April this year, the group's sales revenue and profit reached RMB 38.3 billion and 6.4 billion, respectively, slightly higher than the same period last year. In May this year, the company's sales revenue is expected to increase by 40% year-on-year.
In Sany Heavy Industry's industrial park in Changsha, various construction machinery assembly lines have been running at full capacity, and many orders are scheduled for completion in the second half of this year. In its industrial zone in Lingang, Shanghai, excavators are being assembled at a rate of one every five minutes.
The company said that in April, sales of products such as excavators and pile pilers reached 10342 and 10994 respectively, breaking the monthly record.
According to data from Guangxi Liugong Machinery Co., Ltd., the group's total output of excavators in April was 4,500, which was three times that of the same period last year.
"At present, our production line is running at full capacity. Thanks to the digital industry chain platform, we have managed to find more than 1,000 suppliers and share resources such as employees, raw materials, and logistics to ensure smooth production." The vice president of Liugong in Guangxi Earlier said in an interview.
However, analysts believe that as demand growth weakens, it is expected that the growth rate of excavator sales will slow in the second half of this year. The year-on-year growth rate is expected to be between 10% and 15%. Analysts said, “The reason behind the growth is that the tone of the government’s annual increase in infrastructure investment will not change, and the excavator updates brought by environmental protection policies are also accelerating.” “With the orderly recovery of work, the state will increase Investment in traditional infrastructure construction has created a growing market demand for construction machinery. In addition, with the gradual development of new infrastructure, it is expected to become a new economic driving force, and market demand for the industry will continue to expand."
