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2. Chinese equipment market falling sharply in 2022

Construction equipment sales in China are expected to fall -38 per cent in 2022. The market for earthmoving, road building and lifting equipment is forecast to reach 280,535  units this year, compared to recent highs of 483,135 units and 452,419 units in 2020 and 2021 respectively. The downward movement is a continuation of the trend which began in mid-2021.

Detailed forecasts are available in the updated Chinese Database Service and the August edition of Off-Highway Research’s Chinese Market Reports, which are available to Chinese report subscribers.

Sales in the first half of 2022 were down -47 per cent compared to the first half of 2021. The losses were widespread, with most equipment categories seeing falls in the region of -50 per cent. Of the high volume equipment types, wheeled loaders were the least affected, but sales were still down -30 per cent on half-year basis.

The Chinese economy has seen a sharp slowdown this year, due to a large degree to the impact of the Covid pandemic. Efforts to date to stimulate the economy have so far only had limited success

“The current downturn can be attributed to the general slowdown of investment activities since last year. In 2021, with the recovery of personal income from the impact in 2020, the macro policy was redirected to mitigate the leverage and the progress of local special debt issues became slower in the first half of 2021. Although this was changed to acceleration, in the light of the drastic slowdown of the total economy in the second half of the year, public investment alone appeared insufficient to improve overall investment activity,” said Off-Highway Research’s mid-year review Market Report.

Off-Highway Research will be updating its other forecasts over the course of the summer, with updates to the International Database Service (Europe, North America and Japan), Indian Database Service, Global Volume & Value Service and Customer Group Database Service expected to be published at the end of August.

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