August excavator sales of 11588 units, year-end update demand expected to reach 48% - domestic excavator parts-Kunshan Chuanna Hydraulic Parts Co., Ltd

The off-season is not easy, and the peak season is out of stock. "has become synonymous with the sales market of excavator machines in the first half of 2018. Driven by the national infrastructure policy and the demand for equipment replacement, the sales of excavator machines this year have experienced a great surge! According to the calculation data of the Excavation Machinery Branch of China Construction Machinery Industry Association, the domestic excavator parts editor learned that from January to August 2018, a total of 142834 units were sold by the 25 main engine manufacturing enterprises included in the branch calculation, with a year-on-year increase of 56.2%. During this period, 11588 units of various types of machinery were sold in August, with a year-on-year increase of 33.0%. The sales volume of the shopping mall has shown a significant increase trend.

Sales Chart of Excavators from January to August 2018

Since July, the sale of excavators has entered a difficult situation. "When I used to purchase excavators, I only needed to prepare a 30% down payment and go to several excavator agents in the city to choose freely and pay to pick up the goods. However, recently when I consulted with these agents, they were all told that I had to pay a deposit before I could go to pick up the goods or wait in line," a excavator user once told a domestic excavator parts editor.

These series of shopping mall conditions are enough to prove the booming situation of shopping malls in the first half of 2018! Let's take a look at the sales of domestic excavator parts in the first seven months of 2018.

Comparison of excavator sales between January July 2018 and January July 2017

Market share of domestic and foreign brand excavators in 2018

The domestic excavator parts editor can see through data calculation that from January to July 2018, the sales of domestic, Japanese, European, American, and Korean brands were 69858, 20811, 23478, and 15913 units respectively, and the market share was 54.0%, 16.0%, 18.0%, and 12.0% respectively. Sany, XCMG, and Caterpillar still occupy the top three positions in the domestic market. From the perspective of brand format in the past three years, the shopping mall has remained relatively stable, with domestic brands still accounting for half of the mall's sales proportion.

Export Sales Chart of Excavators from January to July 2018

Proportion of exports of large, medium, and small excavators from January to July 2018

Export is a necessary path for domestic excavator enterprises to carry out their business. At that time, domestic brand excavators had become sophisticated in terms of branding, quality, and sales. As domestic investment in excavator parts gradually enters a new normal in China, various excavator manufacturers are turning their attention to overseas markets. The leading domestic enterprises have been laying out in overseas shopping malls since the beginning of 2000 and have achieved rapid development. From January to July 2018, there were 10683 excavators exported, with approximately 3000, 5483, and 2100 of them being small, medium, and large excavators respectively. The year-on-year increase is about 118%.

Comparison of Sales in Various Regions from January to July 2018

From the perspective of sales regions, the sales volume of domestic excavator parts in the eastern, central, and western regions from January to July 2018 were 38513, 38006, and 43973 units respectively, with year-on-year growth rates of 60.0%, 60.9%, and 46.0%, respectively. During this period, sales in Jiangsu, Shandong, Anhui, Hunan, Hubei, Henan, Sichuan, and Guizhou all exceeded 5000 units, accounting for over 5% of sales in 32 provinces and cities.

Top 10 brand enterprises in terms of sales from January to July 2018

From the perspective of sales performance of domestic excavator parts, in the first half of the year, Sany SY75C-10 was far ahead with sales of more than 5500 units. Sany accounted for five of the top ten models in terms of sales, two from XCMG, and one each from Doosan, Caterpillar, and Shandong Lingong. The best-selling products of each brand are as follows: Sany SY75C-10, XCMG XE60D, Caterpillar 305.5E2, Doosan DX55-9C, Shandong Lingong E660F.

Analysis of the domestic excavator parts market:

In the first seven months of 2018, investment increased by 5.5% year-on-year, marking a new low in growth rate since 1992. However, during the same period, sales of excavators increased by 58.7%. The sales of excavators peaked in 2011 and then began to decline until mid-2017 when sales began to rise. However, the increase in investment remained consistently sluggish. So, personally, I believe that the booming sales of excavators in the past two years are mainly due to the upgrading of equipment and the implementation of national environmental protection policies.

According to research conducted by ZhiResearch Consulting, the demand for updating domestic excavator accessories was 46840 units in 2016. The sales volume of excavators that year was 73390 units, and the update demand accounted for more than 60%. The update demand in 2017 was 61891 units, and it is estimated that the update demand will rise to 81536 units in 2018, 102310 units in 2019, and 145532 units in 2020. With the continuous influence of national environmental protection policies, the emission standards for non road mobile diesel engines have reached the third stage, and excavators that do not meet the standards will be screened. In addition, some construction sites have clearly stipulated that non road engineering vehicles that do not meet the National III emission standards are not allowed to enter. This also reflects that excavators sold between 2009 and 2011 have now entered the screening period continuously.

According to a research report released by Zhiyan Consulting, it is expected that most of the "National One/National Two" excavators on the market will be screened out in 2018. Therefore, in the future, the construction machinery market will be benefited by strict environmental policies. Assuming the lifespan of the excavator and loader is 10 years, and 40% of the machines in the first three years of the year are screened out, that is, the machines that need to be updated and replaced. The remaining 60% of the machines continue to operate normally, and all machines from earlier years are screened out. The proportion of future update demand is expected to increase significantly. It is estimated that the proportion of excavator update demand is expected to reach 45% -48% in 2018 and 50% in 2019.

It is not difficult for the domestic excavator parts editor to introduce that the sales volume of excavator machinery will continue to increase in the next six months. However, the increase in sales does not mean that the excavator market is booming. At this moment, users are different from those between 2009 and 2011, and there will not be a situation where "people who sell leeks also come to operate excavator machines!" Therefore, users who have experienced a low valley period are more rational in choosing excavator machines! In the future, the exploration of the machinery industry will become more and more stable. In today's homogenized product market, domestic excavator parts editors estimate that companies will not blindly seek only production volume, but will continuously improve their technological content to segment and achieve transformation and upgrading. The new four modernizations (electrification, networking, intelligence, and sharing) will be the trend sought by construction machinery manufacturers, and the widespread use of intelligence is of utmost importance!