Off-Highway Research has tipped sales of hydraulic excavators in China to grow 40% this year – after a 125% year-on-year rise to just under 100,000 units in 2017
Sales of hydraulic excavators in China rose an eye-catching 125% in 2017 to just under 100,000 units. According to Off-Highway Research’s (OHR) latest equipment analysis on the sector, sales will grow a further 40% this year to take the market to the peak of its cycle.
OHR says the sharp rise in excavator sales has been due to a number of factors, including the launch of major infrastructure projects, the introduction of Public Private Partnership (PPP) financing models and the clearing of old stocks and used machines from the market following the 2012-2016 downturn.
In addition to meeting rising domestic demand, manufacturers in China have been exporting machines in increasing numbers over the last three years. This includes international OEMs with a footprint in China, as well as indigenous companies.
OHR, a leading global construction equipment market research consultancy, tips excavator sales to stay reasonably high for the next four years. However, 2018 is expected to be the high-water mark in the current cycle. Slower growth in real estate projects and a reduction in PPP activity is likely to impact on sales. On the other hand, stricter environmental policies and the forthcoming introduction of China IV emissions laws could, says OHR, see an accelerated machine replacement cycle take hold.