Overview of China Construction Machinery Market in the First Half of 2011

Summary: In the first half of 2011, the construction machinery market experienced a frenzied first quarter. Starting in April, sales in various sub-sectors have dropped significantly compared to the previous month.

In the first half of 2011, the construction machinery market experienced a frenzied first quarter. Starting from April, sales in various sub-sectors have shown a significant decline from the previous month. According to statistics, from January to May, cumulative sales of excavators increased by 36% year-on-year; cumulative sales of bulldozers increased by 21% year-on-year; cumulative sales of loaders increased by 21% year-on-year. It is an indisputable fact that the growth rate of the construction machinery industry has slowed down this year. Experts believe that the challenges faced by the construction machinery market in 2011 are unprecedented. Although the entire industry still has optimistic prospects, the decline in growth rate is an inevitable trend.

Loader Market Concentration to Dominant Brands According to statistics, in the first half of 2011, China’s loaders accumulated sales of 14.091 million units, an increase of 19.07% year-on-year. Among them, the domestic market sold 129.19 million units, an increase of 14.95%, accounting for 90.92% of total sales. In the first quarter, the loader continued its high growth trend last year, but the market entered the adjustment period in April. Sales volume for the three consecutive months was almost the same as that of the same period of last year, lowering the overall increase in the first half of the year. The accumulated sales of Longgong, Xiagong, Lingong and Liugong exceeded 20,000 units. The market competition of first-line brands has become increasingly fierce, and the market share has further converged. Among them, the growth rate of temporary workers far exceeded the other three, reaching 46.02%; Liugong increased further, only 3.74%, lower than the overall level of the industry. Among the second-tier brands, Xugong, Shangong, Changlin and Shandong Degong have seen a larger increase; the success rate of the workers has been very weak and there has been negative growth. Compared with the situation in 2010, the market share of Longgong has decreased slightly; Liugong has seen a larger decline; temporary workers have risen faster. The market share of other companies has risen and fell, but the market concentration has been further concentrated on the dominant brands.

In the first half of 2011, the market share of 5-ton products was the largest, at 67.67%; followed by 3-ton products, the market share reached 21.97%. The growth rate of small tonnage products below 3 tons and 6 to 7 tons of products is higher, which is significantly higher than the overall level of the industry. The increase in the traditional tonnage of 3 tons and 5 tons of products slowed down. From a trend point of view, market demand spreads to full-tonnage products, and mini-machines and special machines have given birth to certain opportunities. The sales of the four leading companies in the five-ton product are all around 70%, of which Longgong is close to 80%. Xiagong and Longgong are more concerned about small tonnage products below 2 tons, especially Xiagong's share of such products is nearly 12%, which is the highest among leading enterprises.

Excavator national brands take share of Japan and South Korea According to statistics, in the first half of 2011, 25 major excavator manufacturers in China sold 127,600 excavators, an increase of 31.98% year-on-year. Among them, the sale of 1.0443 million units in June, the chain continued to decline, but the decline was significantly narrower than the previous two months; year-on-year decline of 11.06%, two consecutive months of negative growth.

In the meantime, the sales volume of excavators on the Chinese domestic market was 125.55 million units, an increase of 31.35% year-on-year, which was lower than that of the export market. Export sales volume was 2,080 units, a year-on-year increase of 66.4%, and the growth rate was relatively large. It is expected that the annual export growth will exceed 50% in 2011. .

14 domestic excavator brands sold a total of 47.464 million units, and the market share reached 37%, far higher than the market share of 28.9% in 2010. Among them, the year-on-year growth of Sany Heavy Machinery, Yuchai, Liugong, Mountain Rebuilder, Foton Lovol and other domestic outstanding brands was higher than the overall level of the industry, and the momentum of development was rapid. Japanese brands sold a total of 31.619 million units, accounting for 30% of the entire excavator market, which was lower than the market share of 35.39% in 2010. The Korean brand sold a total of 25,562 million units, and its market share was 20%, a decrease of 3.92% from 2010. The European and American Departments sold a total of 15,985,800 units, accounting for 13% of the total market share, slightly higher than the market share of 11.57% in 2010, and the market performed steadily.

Research shows that market demand has shifted to both ends, and the share of 20 to 25 tons of products has dropped significantly. In the first half of 2011, 6 to 13 tons and 35 to 39.9 tons of products in the two tonnage areas grew rapidly, with an increase of over 80%; followed by less than (equal to) 1 ton, 13 to 19 tons, and 30 to 35 tons. The tonnage range of products also exceeded the overall level of the industry. The increase in the traditional important sales range of 20 to 25 tons is limited, and the market share has dropped significantly. As a whole, demand shifts to both ends of the product tonnage. The top 10 companies have the most fierce competition in 20-25 tons of products, and Sany has a leading position in this tonnage range. Japanese brands such as Komatsu, Hitachi Construction Machinery, and Kobelco have an absolute advantage in the tonnage range of 30 tons or more; Hitachi Construction Machinery and Sany have obvious advantages in products of 6 to 13 tons; Doosan, Yuchai, and Hyundai Capital are among 5 companies. 6 tons of products occupy the top three.

Statistics show that the growth rate of this market far exceeds that of domestic exports, and the annual increase is expected to exceed 50%. In 2011, the development capability of the three pairs of overseas markets increased and the export sales volume increased first; Liugong, Yuchai and Shanhe Intelligence still maintained the traditional export advantages.

Bulldozer high horsepower products or new enthusiasm into the market in the first half of 2011, China's major bulldozer companies cumulative sales of more than 8,800 bulldozers, an increase of 12.40%. Among them, the domestic market accumulated sales of 7,000 units, an increase of 3.77%, accounting for 79.39% of total sales; export sales of more than 1800 units, an increase of 65.48%, accounting for 20.61% of total sales.