China Excavator Sales Plummet... Domestic Market Drops 40%

Impact of Real Estate Slump and Growth Slowdown

The sales volume of excavators, a barometer of the construction industry, has decreased by 40% in China. Due to the real estate market slump and economic growth slowdown, there is an analysis that exports must be focused on again this year.

According to the announcement by the China Construction Machinery Industry Association on the 10th, last year’s excavator sales in China totaled 195,018 units, a 25.4% decrease compared to the same period the previous year. Domestic sales accounted for 89,980 units, sharply dropping by 40.8% from the previous year, while exports were 105,038 units, down 4.04% during the same period.

Excavators are widely used at construction sites and are the equipment most sensitive to changes in related economic conditions, holding the highest sales proportion among construction and machinery types. Their sales volume is regarded as a leading indicator reflecting not only the construction and machinery industry but also the overall economic situation.

China’s Pengpai News explained, "There was not much new demand for excavators last year, so domestic sales decreased significantly," and added, "Exports slightly declined due to the base effect." In a research report, China Zhixiang Securities forecasted that excavator demand would end an eight-year boom and hit bottom last year and this year.

Sales of other equipment such as loaders also declined. According to statistics from the China Engineering Machinery Industry Association, loader sales last year were 103,912 units, down 15.8% compared to the previous year. Domestic sales were 56,552 units, plunging 30.1%, while exports increased by 11.5% to 47,360 units.

Guotai Junan Securities stated in a research report, "Although domestic sales decreased, exports of some items like loaders improved," and diagnosed, "Overseas demand remains solid, and large ore equipment and electrified equipment with good profitability could be breakthrough points."

In fact, overall construction and machinery exports are expected to maintain an increasing trend compared to last year. According to data from the General Administration of Customs of China, from January to November last year, China’s construction and machinery export value was $44.622 billion (approximately 58.8698 trillion KRW), a 10.6% increase compared to the previous year. In yuan terms, it was 313.294 billion yuan (approximately 57.5427 trillion KRW), up 17.3% during the same period.

Exports to Belt and Road countries notably improved. Last year, exports to related countries totaled $991.9 million, accounting for 47.8% of total exports, representing a 53.3% increase compared to the previous year. Pengpai News forecasted that since localization marketing networks are currently being established in markets such as Indonesia, the Middle East, Africa, and Europe, the growth rate will become even more remarkable in the future.

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