Domestic Market Is Better Than Overseas | February Excavator Sales 18 745 Units, An Increase Of 68% Year-on-year!

According to the statistics of the Construction Machinery Association, in February 2019, 18 745 excavators were sold, an increase of 68% over the same period last year. Domestic sales of 17286 units, an increase of 78% year-on-year, export a total of about 1459 units, an increase of 5% year-on-year.

From January to February, a total of 30501 excavators were sold, an increase of 40% over the previous year, of which 27 428 were sold in China, an increase of 42% over the previous year. Overseas exports totaled 3073 units, up from +22% year-on-year.

Emphasis on rural infrastructure construction and sustained development of small excavations

Product structure analysis: the growth rate of small excavation sales is far faster than that of medium and large excavation. February domestic market data:            

large (> 30t) sold 2 273 units, with a year-on-year sales of + 31.54%;           

medium (20-30t) sold 4177 units, which was + 68.56% year-on-year.            

small (< 20t) sales of 10836 units, year-on-year + 96.14%.            

Why is the growth rate of small excavation much faster than that of large excavation?            

On the one hand, capital construction and rural construction boost small excavation sales.           

 Around the Spring Festival of 2019, capital construction projects have been approved and started intensively. Major projects around the country have invested hundreds of billions of dollars, and the shortcomings of capital construction have entered the fast lane. And rural infrastructure is the key area of infrastructure construction. For this reason, the explosive start-up makes the sales of small excavators used in small earthwork projects such as rural, municipal construction, road repair and so on continuously increase, and the demand of users for small excavations has increased significantly.            

On the other hand, the downtime in rainy season slows down the growth rate of large excavation.            

Because of the rainy weather since January to February, it may restrain the start of some mineral and construction projects. As a result, the growth rate of large excavators used in mining and large-scale engineering projects has slowed down and the demand has been relatively reduced.

Optimizing Industry Structure and Strong Domestic Brand

In terms of brand structure, the share of domestic brand excavators reached 56% in January-February, which was 3% higher than 53% in 2018.           

In February, domestic brands showed outstanding performance, among which Sany Heavy Industry and Xugong Machinery sales grew 116% and 117% year-on-year respectively; in January-February, Sany Heavy Industry and Xugong Machinery sales grew 83% and 78% year-on-year, with market share of 27.5% and 12.5% respectively, up 4.4% and 1% respectively compared with 18 years.            

Foreign giant Caterpillar's cumulative sales in January-February grew 15% year-on-year.            

The gap between domestic and foreign giant equipment is gradually narrowing, the market recognition is constantly improving, the advantages of domestic leading enterprises are stable, and the market share is centralized.

Due to the policy of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road,the export is stable

In February, 1459 excavators were exported, with a year-on-year sales of + 5%, and 3073 excavators were exported, with a year-on-year sales of + 22%. Among them, the export volume of Sany is 540 units, accounting for 27% of the total export volume of the industry, which is + 33% year-on-year, and the cumulative total is + 42% year-on-year.            

Along with the leading manufacturers' overseas layout more perfect, and the overseas engineering projects represented by the "one belt and one road" project, it has become the main source of the growth of the excavator export. At the same time, Caterpillar closed its overseas factories and further increased the shipment of construction machinery products for excavators in China.            

Since the Spring Festival, a large number of infrastructure projects have been started. Many construction machinery manufacturing enterprises, such as Zhonglian, Xugong, Sanyi, Shanhe Intelligence, Liugong and so on, have ushered in the "red door", together with the upcoming promotional season of March. In this regard, relevant industry experts said,            

We are optimistic about the quarterly excavator market in 2019. We expect that the sales of excavators will increase by more than 25% year on year.