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2. Expressways and emissions drive Chinese grader demand

Motor grader sales in China enjoyed a second year of strong demand in 2018, with sales once again exceeding 1,900 units. Demand was driven by the many new expressway projects implemented since 2016, the replacement of old machine fleets that has been encouraged by stricter environmental regulations and engine emission controls, and improved customer confidence.

However, demand for graders has fallen sharply in 2019 to date as the equipment buying surge associated with increased road building activity has passed for this cycle. Interestingly though, sales are expected to increase again in 2020 ahead of the deadline for the enforcement of the new China Stage IV emissions standards. After that, grader sales are expected to subside again.

Off-Highway Research’s new Equipment Analysis on the Chinese motor grader industry said, “Traditionally, the use of motor graders is largely confined to expressway projects, major airport projects and urban road facilities, where their use is required by the technical specifications for levelling the subgrade layers. The number of new projects in these areas have a direct bearing on demand, but there has been little impact from the large number of ordinary road projects, on which contractors use other types of earthmoving equipment instead of graders.”

Off-Highway Research’s September 2019 Motor Graders 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.