Sales of China Construction Machinery Market in the First Half of 2016

Along with the continuous implementation of the national “Belt and Road” policy, the gradual landing of “Made in China 2025”, and the drive for infrastructure investment such as roads and railways, the development of the Chinese construction machinery market is full of opportunities, but it is still facing downward pressure. The market is small in the first half of the year. There are waves.

In March before the official implementation of the third national emission standards for non-road mobile machinery, sales of all types of machinery reached the peak once. However, due to the impact of the upgraded price factors, sales volume in April soon declined. On the other hand, the increase in demand in the domestic market (according to statistics from authoritative organizations, the import volume of construction machinery products in China in the first half of 2016 decreased year-on-year) contributed to the stabilization of the entire market to a certain extent; while the international market was depressed and exports declined. Other factors also affect the market sales in the first half of the year.

Statistics show that in addition to the positive growth in sales of road rollers, bulldozers, and pavers in the first half of 2016, the sales of excavator, loader, and crane models have declined to varying degrees.

Excavator: getting warmer early, stabilizing

In the first half of 2016, the major manufacturers of 27 domestic excavators sold a total of 37,437 units of excavation machinery (including exports, if not specified otherwise), which was a decrease of 2.3% over the same period in 2015 (38328 units). Previously, the implementation of the National 3 emission standards has stimulated the sales of excavators to a large extent and achieved substantial growth in March. However, due to the fact that the equipment was not sold to the end-customers and remained in the agent channel in large quantities, the inventory was still huge, and some customers held wait-and-see attitude towards the upgraded engine, and the price was also an influencing factor. Inevitably, excavator sales began to fall in April.

Affected by the Spring Festival and the replacement of equipment, excavator sales in the first half of 2016 decreased except for February and April, and all other months increased compared to the same period in 2015. Although there is a slight decline in the total volume, the overall situation is positive.

At the same time, the excavator export market in the first half of 2016 also showed signs of significant improvement. Data show that in the first half of 2016, 27 host companies exported a total of 3,713 excavators of various types, an increase of 27.5% compared with the same period of last year. Export sales of excavators almost doubled in March, April and May, and the “One Belt and One Road” policy effect was further highlighted. In contrast with the declining monthly sales, excavator export sales increased by 57.7% in April.

Loader: Continued decline

In the first half of 2016, 26 major loader companies nationwide sold 36,989 units of various types of loaders, a decrease of 7,018 units or a decrease of 15.9% compared with the same period of 2015. According to the month, the monthly sales volume of loaders in the first half of the year saw a positive growth of 35.9% in March, becoming the highest sales month in the past year.

In the first half of 2016, a total of 33,347 loaders with 3 tons and above were sold, which accounted for 90.15% of the total sales volume. However, compared with the same period of 2015, sales volume decreased by 26.73% year-on-year, which was higher than the average level. Sales volume of loaders under 3 tons decreased by 32.58% year-on-year in the first half of the year.

In terms of specific imports and exports, in the first half of 2016, cumulative sales of loader exports were 6,810, a decrease of 1982 units or 22.5% year-on-year. Compared with the increase in the export volume of excavators in the first half of 2016, this figure is hardly optimistic.

Crane: Decline has narrowed

In the first half of 2016, the demand in the international market was sluggish. The decline in the export of construction machinery products increased; the real estate industry was still in a state of destocking, and the real estate investment and new construction area had almost no significant changes in the sales area and sales of commercial housing. Affected by this, the sales of equipment in the crane industry, which are closely related to it, have declined. New products introduced by major production companies such as XCMG have not been able to withstand this downward pressure.

According to statistics, in the first half of 2016, China's major crane manufacturing enterprises have sold 9,335 cranes, a decrease of 1,733 units compared to the same period in 2015, a year-on-year decrease of 15.66%.

In general, the sales of cranes in the first half of 2016 converged with the same period of 2015. Although the volume has decreased, the trend has remained stable. Compared with the 28.44% decline in the first half of 2015, the decline in the crane market has narrowed significantly in the first half of 2016.

Specific to the model, in the first half of 2016, there were 4754 sales of truck cranes, 3,877 truck cranes, 505 crawler cranes, and 199 tire cranes. Among them, the first half of the sales volume of the tire cranes increased year-on-year, while the remaining models showed a downward trend.

Affected by multiple factors, such as domestic and international demand, investment return, and monetary policy, sales of some models decreased in the first half of 2016. However, it should be pointed out that the pulling of infrastructure projects such as roads and railways has, to a large extent, promoted the growth of the road machinery market in the first half of the year.

Roller: Realizing positive growth

In the first half of 2016, the cumulative sales volume of road rollers was 6,390 units, an increase of 395 units year-on-year, achieving an increase of 6.59%. In April, the price of upgraded engines affected the sales of products to a certain extent, and the sales volume of roller in the month fell. In addition, sales in both months of 2, 3, 5, and 6 all showed an upward trend and sales were good.

In the first half of 2016, the cumulative sales volume of road rollers in China was 5,607 units, a year-on-year increase of 12.21%, and domestic demand increased. On the contrary, in the first half of the year, the volume of exports (792 units) decreased by 21.42% compared with the same period in 2015, and external demand shrank.

From the standpoint of sorting, in the first half of 2016, the single drum roller (mechanical + hydraulic type) ranked first in the market share of 47.5%, the sales volume of tire roller decreased slightly, and the sales volume of double roller roller achieved higher than the total amount. With the increase in growth, sales volume increased by 24.58% year-on-year. The sales volume of light roller was also optimistic, with a year-on-year increase of 22%.

Bulldozer: Drive sales growth in March

According to statistics, in the first half of 2016, a total of 2413 bulldozers were sold domestically by major domestic bulldozers (12 companies), which represented a year-on-year increase of 12.13% compared to the first half of 2015 (2,152 units). Among them, the total domestic sales were 1,941, an increase of 32.58%, and the total export volume was 472, a year-on-year decrease of 29.80%. Bulldozers' domestic market demand increased.

Throughout the month of sales, in addition to March, bulldozer sales have declined in the remaining months. Coinciding with the switching of the country two countries, equipment replacement, in March 2016 bulldozer sales of up to 920 units, an increase of 81.82% compared with the same period in 2015, becoming the main reason for pulling the bulldozer sales growth in the first half.

Paver: Continuing Growth

Domestic highways are booming. Compared to earth-moving machinery and concrete machinery, pavers are obviously more favored and maintain a relatively stable growth. According to statistics, in the first half of 2016, a total of 17 major manufacturers of paving machines in China sold a total of 1,127 units of equipment, an increase of 44 units compared with the same period of 2015, an increase of 4.06%.

Total sales volume of hydraulic asphalt paver and mechanical asphalt paver in the first half of 2016

The data also maps out the innovations and enhancements in the paver market technology. Fully hydraulic paver has gradually replaced low-end mechanical paver products. The data shows that in the first half of 2016, the sales volume of hydraulically-powered asphalt paving machines continued to increase, which represented an increase of 12.49% year-on-year, accounting for 97.52% of the total sales volume of the first-half paver in the volume of 1099. In the first half of the year, only 28 mechanical asphalt paver machines were sold, and market share was better than none.

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