In July, the sales volume of excavators was 50% for domestic sales and 50% for export
According to the statistics of 26 excavator manufacturers by China Construction Machinery Industry Association, 17939 excavators of various types were sold in July 2022, with a year-on-year increase of 3.42%; Among them, there were 9250 domestic units, a year-on-year decrease of 24.9%; 8689 sets were exported, with a year-on-year increase of 72.8%.
The export sales volume of excavators is only 561 less than the domestic sales volume. It can be said that the export and domestic sales account for half of the country!
Since the second quarter of 2021, the construction machinery industry has shown an overall downward trend due to the weakening of domestic demand, the saturation of the construction machinery market, and the sharp rise of raw material prices. In July, the overall sales volume of excavators turned positive, which was the first time in nearly a year. In the case of halving domestic sales, it relies on the rapid growth of overseas markets. Among them, the Southeast Asian market has gradually become the main battlefield of various brands of excavators!
Develop the Southeast Asian market, and take the first step of domestic excavator
At the beginning of 2022, a cargo ship carrying more than 500 XCMG excavators slowly left the port and sailed for Southeast Asia. Today, these big men are busy on construction sites in Southeast Asian countries.
In June, the cargo ship "Sany" loaded with more than 300 Sany excavators left the Nangang wharf near the port of Shanghai for Southeast Asia.
From January to may 2022, the overseas sales of Sany excavator has exceeded 13000 units, with a year-on-year increase of 67%, creating a new record in the domestic construction machinery industry. According to the annual report of Sany Heavy Industry, its excavator has the first market share in 15 countries such as Indonesia and Thailand.
In addition to XCMG and sany, domestic brands such as Liugong, Zoomlion, Shanhe intelligent and Shandong Lingong have achieved success in the Southeast Asian market. Why is domestic equipment popular in the Southeast Asian market? To sum up, I think there are several reasons for this!
01 "the Belt and Road" + RCEP
With the continuous promotion of the national "the Belt and Road", China's trade cooperation with Southeast Asian countries along the belt and road has achieved fruitful results. At the same time, a large number of urban construction projects and mineral projects have emerged, providing development opportunities for domestic excavators to go to sea.
The regional comprehensive economic partnership agreement (RCEP) came into force on January 1, 2021. Through the reduction of tariff and non-tariff barriers and the establishment of a unified market of 15 countries, the once hot Southeast Asian market will be added to the firewood.
02 ultra high cost performance
After years of development, the quality and performance of domestic brand excavators have been comprehensively improved, no less than that of Japanese and Korean brands. In the Southeast Asian market, excavator products of Chinese brands such as XCMG and sany are about 20% cheaper than those of Japanese and European and American manufacturers. The ultra-high cost performance also makes Southeast Asian users love made in China!
03 purchase policy
In the Chinese market, the flexible purchase policy of domestic brands makes the imported brands very uncomfortable. In the Southeast Asian market, Chinese manufacturers provide preferential policies such as loans to purchase excavators, zero down payment, and interest free three-year installment payment, which makes local users who have never enjoyed these preferential policies "overwhelmed by happiness", and imported brands are also overwhelmed.
04 epidemic impact
Since the outbreak of the epidemic, the global supply chain has been greatly impacted, and adverse factors such as blocked shipping and labor shortage have greatly extended the delivery cycle of many imported brand excavators, which also gives opportunities to domestic excavators.
According to the statistics of China Construction Machinery Industry Association, among the top 10 countries in China's construction machinery exports in 2021, Southeast Asia accounted for 5 (Indonesia, Vietnam, India, Philippines and Thailand respectively). Among them, the export volume of excavators from these five countries (151659 sets) accounts for about 67% of the total volume of the top ten countries.
New infrastructure investment and soaring commodity prices have greatly boosted the demand for construction machinery products in Southeast Asia, and the sales volume of construction machinery products has been rising. Various favorable factors have enabled Chinese made excavators to gradually gain a foothold in the Southeast Asian market and have the potential to spread.
