Doosan Bobcat Accelerates Entry into Chinese Small Excavator Market... Begins Local Production

Doosan Bobcat's small excavator E17Z model produced at the Suzhou factory in China

[Asia Economy Reporter Ki-min Lee] Doosan Bobcat announced on the 5th that it has started direct production of 1~2-ton class small excavators in China and is making a full-scale push into the Chinese small construction machinery market.

Doosan Bobcat explained that by producing small excavators in-house, it plans to expand its market share in China through enhanced cost competitiveness and faster response to customer demand.

The small excavators that have begun mass production are two models, the E17Z and E20Z, produced at Doosan Bobcat's Suzhou plant in China. Both models are small equipment in the 1~2 ton class and feature a Zero-tail Swing (ZTS) design that minimizes the turning radius, maximizing work efficiency even in narrow spaces.

Previously, these were imported from the Czech Republic and sold, but by producing them domestically in China, Doosan Bobcat stated that it has improved price competitiveness and shortened the lead time from order to delivery, enabling quick response to changes in demand.

The current market for small excavators under 3 tons in China, which Doosan Bobcat is targeting, is about 7,000 units annually. The small excavator market in China has recorded a steep average annual growth rate of about 80% from 2016 to last year. Doosan Bobcat plans to achieve a double-digit market share within three years by offering highly competitive products and differentiated financing programs.

A Doosan Bobcat official said, “The Chinese small excavator market is expected to continue high growth due to increased indoor work driven by urbanization and rising labor costs,” adding, “We plan to continue expanding sales not only in Asia but also in emerging markets with high growth potential such as Oceania and Latin America, using China as a production base.”

Meanwhile, Doosan Bobcat has been expanding its business in the Chinese small construction machinery market, having launched the small loader product ‘Earthforce’ tailored for the Chinese market in 2017, and starting local production of the smallest size S70 small loader in China last year.

This content was produced with the assistance of AI translation services.