Kawasaki agent warning: Chinas construction machinery industry will face major changes!

2025-02-20

After experiencing a downturn of 13 to 16 years, China's construction machinery industry has ushered in a professional carnival. Kawasaki agent Kawana Hydraulic, in the words of industry insiders, in the past two years, as long as there are agents who cannot receive goods, there are no agents who do not make money. This statement has also been confirmed by professional data. According to statistics from the Excavation Machinery Branch of China Construction Machinery Industry Association, the year-on-year increase of excavators from January to August 2018 exceeded 50%; Similarly, by August, the number of loaders also increased by 9.5% year-on-year. However, as a profession that experiences cyclical fluctuations due to policy influences, one must be prepared and rest assured when looking forward to the present.

Kawasaki agent Kawana Hydraulics, as an organization specializing in deep service professions, has identified that the profession will undergo a new round of reshuffle from policy changes, overdue additions, and various problems encountered by agents. Some policies will directly lead to adjustments in the commercial and operational forms of the profession.

1、 Self reform of debt control and sales forms under the policy of cracking down on organized crime and eliminating evil

Towing has always been one of the primary methods for handling professional debts, but it has now been discontinued by many agents. The reason is that after the introduction of the anti crime and anti evil policy, many trailer companies have now withdrawn from the mall, and there are also many cases filed due to improper trailer handling. Therefore, whether it is entrusting a trailer or self towing, there is a high legal risk once the method loses control, and this self-help method is almost stopped.

However, the pressure of debt control and seizing the market in the professional world is still very high. Therefore, in the situation where "towing" is not possible, Kawasaki agent Kawana Hydraulic insists on debt control for customers and can still achieve sales, which has become a problem that manufacturers have to face. So, we have seen many agents adopt various methods to cope with it. In addition to the common practice of increasing down payment share and strictly fulfilling business conditions to select high-quality customers, many agents have begun to implement methods such as renting for sale, renting before selling, or pure leasing to digest inventory. Together, they strengthen the ownership of equipment and the reality of leasing, so that they can retrieve equipment at any time and ensure reasonable profits.

However, this practice of reducing risks by changing the form of buying and selling may bring new buying and selling risks and increase buying and selling costs.

Taking the lease before sale contract as an example, this type of contract combines the characteristics of a trial contract and a sales contract. However, when to convert it, and how to solve the tax invoice problem and lock in the customer's responsibility in the "lease" and "sale" stages respectively, are all key considerations for demand, which require the rigor, legality, and financial and tax treatment of the contract.

Pure leasing (but ultimately with the intention of selling) is a contract that can only be fulfilled by Zhou Yu's willingness to buy and sell, and also faces the situation of inconsistent contract terms, tax invoices, and actual buying and selling intentions. The above questions also confuse manufacturers.

Therefore, under the policy of cracking down on organized crime and eliminating evil, Kawasaki agent Kawana Hydraulics has become a professional issue on how to achieve legal self reform in the form of debt control and sales for the manufacturer.

2、 Environmental protection policies and the use of light property by construction companies make leasing a mandatory option for manufacturers

In recent years, the "environmental storm" has made non road mobile machinery with high pollution emissions, such as excavators, loaders, and bulldozers, an important target for processing. The prevention of high ranking areas, phased use, "on duty" record keeping, and mandatory invalidation have all added risks and costs to the equipment holding process. In addition, construction enterprises represented by state-owned enterprises are transforming from heavy financial forms to light financial forms, which has also turned the original purchasing demand into leasing demand.

In this context, the space available for the sale of new machines by manufacturers has been greatly reduced, and they have to switch to the leasing affairs sector. The industry has now seen the emergence of manufacturers such as XCMG and rental companies like Xuguanglian Rental Company, as well as a brand that provides zero down payment and two-year payment to agents to support their promotion of rental services. In this situation, the shift of agents from mainly selling to focusing on selling and renting has become a business form evolution phenomenon that the profession has to face. But the question is, in this evolutionary process, has the original handling mechanism and dangerous control mechanism of reselling by agents been adjusted in place? Has the residual value preservation status of equipment and the fair valuation and disposal channel of second-hand phones met the support? Especially in the context of the competition between selling and renting malls, have the business policies and payment assessment of agents also been reformed synchronously? These similarities all require consideration of the profession.

3、 Tax reform will make "precision" and "compliance" processing core technologies that manufacturers need to build

The Golden Tax Phase III System, launched in 2017, has integrated social security, industrial and commercial, banking, statistical and other information, combined with tax credit rating and real name registration system, resulting in the strictest regulatory system for all enterprises in history. This has made it impossible for enterprises to continue operating based on their original extensive operating forms. The revision of the "Individual Income Tax Law" and the shift of "social security" to be collected by the tax department this year have made it necessary for manufacturers to put the issues of "precision" and "compliance" on the agenda.

The objective increase of operating costs determines that it is necessary for enterprises to reorganize their original processing methods, go through precise processing, make costs controllable, increase profits, and maintain market competitiveness. Together, the addition of operational risks has made tax planning and compliance review essential for manufacturers. How to take into account the overall situation and smoothly pass the checkpoint is also a crucial stage in characterizing the core technology of manufacturers.

Kawasaki agent Kawana Hydraulic, taking a certain brand as an example, has now allowed employees to start their own businesses internally and establish independent operating entities. The company then adopts the method of purchasing services to resolve and manage the heavy burden of labor costs caused by tax reforms; Together, some manufacturers have also established separate operating entities to break the high tax and fee issues caused by concurrent operations. The innovations in these processes are no longer just simple operational actions, but involve multiple aspects such as legal risk assessment, subject establishment, and tax planning that are coordinated and balanced.

Adding insult to injury is that, in the absence of proper innovation in the industry, the overdue rate of customers in many provinces has significantly increased since September, and the volume of second-hand construction machinery sales has continued to decline since April this year. This has determined that the situation of prosperous production and sales in the industry will no longer continue. Once the turning space that manufacturers obtained through market expansion narrows, it will inevitably lead to even more fierce competition.

Kawasaki agent Kawana Hydraulic analyzed the problems faced by the above professions, objectively leading to a revolution in the format of the profession. Whether it is a major change depends on the opinions of different people. But this reform is now objectively taking place, and there is an irreversible trend of acceleration and aggravation. In short, the occupation consolidation dominated by market demand will replace the business form dominated by manufacturers; The original single format of selling new machines will also be broken by diversified operations. In the situation where profit margins are being squeezed, especially when compliance and controllable operating costs will become a necessary path, how to refine into steel has become an answer that professional manufacturers need to submit.

川崎代理商