Chinese excavator sales surge again

By Chris Sleight |  28 August 2018

Sales of hydraulic excavators in China rose a staggering 125 per cent in 2017 to just under 100,000 units. According to Off-Highway Research’s latest Equipment Analysis on the sector, sales will grow a further 40 per cent this year to take the market to the peak of its cycle.

The sharp rise in excavator sales has been due to a number of factors, including the launch of major infrastructure projects, the introduction of Public Private Partnership (PPP) financing models and the clearing of old stocks and used machines from the market following the 2012-2016 downturn.

In addition to meeting rising domestic demand, manufacturers in China have been exporting machines in increasing numbers over the last three years. This includes international OEMs with a footprint in China, as well as indigenous companies.

Excavator sales are expected to stay reasonably high for the next four years, although 2018 is expected to be the high-water mark in the current cycle. Slower growth in real estate projects and a reduction in PPP activity is likely to impact on sales. On the other hand, stricter environmental policies and the forthcoming introduction of China IV emissions laws could see an accelerated machine replacement cycle take hold

Off-Highway Research’s September 2018 Hydraulic Excavators China Equipment Analysis is now available to subscribers to the Chinese Service. Click here to log in. The report can also be bought as a stand-alone publication by non-subscribers. Click here for more details or contact [email protected] to enquire about a subscription.

 


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