China construction machinery industry cheers strong 2020 sales but outlook uncertain

SHANGHAI (Reuters) – China’s strong construction machinery sales are expected to continue until at least early next year but could be hobbled by any slowdown in Beijing’s recent infrastructure investment drive, industry executives said.

Construction equipment makers have experienced unexpectedly robust sales in China this year, especially for excavators, after the country embarked on a fresh building spree to bolster the economy following the emergence of the COVID-19 pandemic.

XCMG Construction Machinery told Reuters its sales in China had jumped by over 20% this year versus 2019, although overseas sales have been hit by the global spread of the virus.

Rivals such as Japan’s Komatsu have similarly said they have seen a recovery in demand from China.

U.S.-based Caterpillar Inc, the world’s largest equipment maker, unveiled a new range of cheaper, 20-ton “GX” hydraulic excavators for the Chinese market at the BAUMA fair 2020, which attendees said were being advertised by dealers for as low as 666,000 yuan ($101,000). Generally, Caterpillar’s excavators sell for about 1 million yuan.

A Caterpillar spokeswoman said the new series enabled it to offer equipment at a lower low price point and cost per hour.

“Competition in China is very fierce, the prices for some standard products have fallen to levels where they can’t really go any lower anymore,” XCMG’s Wang said.

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Post time: Dec-02-2020