Construction Market Barometer... China's Excavator Sales Halved in February

Government: "Those Who Must Go Bankrupt Should Go Bankrupt"

The sales volume of excavators, a barometer of the construction industry, showed a sharp decline in China. In particular, domestic sales halved compared to the previous year, clearly reflecting the downturn in the real estate market.

According to the China Construction Machinery Industry Association on the 10th, last month, the sales volume of excavators in China was 12,608 units, down 41.2% compared to the same period last year. Among these, domestic sales were 5,837 units, plunging 49.2% during the same period, and exports were 6,771 units, down 32.0%. The cumulative sales volume this year reached 24,984 units, a 21.7% decrease from last year. Of these, domestic sales were 11,258 units and exports were 13,726 units, down 24.6% and 19.1% respectively compared to the previous year.

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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 machinery types. Their sales volume is regarded as a leading indicator reflecting not only the construction and machinery industries but also the overall economic situation.

In February, 6,495 loaders were sold, down 32.6% from last year, with domestic sales and exports at 2,763 and 3,732 units respectively, decreasing by 50.4% and 8.44%. On a cumulative basis, 14,297 units were sold, with domestic sales and exports at 6,507 and 7,790 units respectively, down 18.6% and 5.09% during the same period.

China's Pengpai News explained the decline in excavator sales by stating, "Domestically, the impact of the Spring Festival was felt, and overseas markets recorded negative growth for nine consecutive months compared to the previous year due to decreased demand."

Ge Xin, Deputy Director of the Langer Steel Research Center, said, "The main demand sectors for the construction machinery industry are infrastructure and real estate," adding, "Since the Spring Festival holiday, infrastructure projects have started intensively across various regions." Deputy Director Ge further explained, "In the short term, the real estate industry's deep adjustment will continue, and the effects on construction and new construction of real estate projects will be insufficient, limiting domestic demand for construction machinery."

Meanwhile, China recently expressed that it will not directly bail out Chinese real estate companies facing bankruptcy risks. According to China's state-run Xinhua News Agency, Ni Hong, Minister of Housing and Urban-Rural Development, emphasized at a press conference during the Two Sessions on the 9th, "For real estate companies with severe insolvency and loss of operational capability, the principles of rule of law and marketization must be followed," adding, "If necessary, they should go bankrupt and be restructured." He continued, "Those who harm the public interest will be strictly investigated and punished according to the law and made to pay the appropriate price."

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