Chinese Excavator Manufacturers Make Deeper Inroads in Asian Markets through Competitive Pricing: Fact.MR Study
“Chinese excavators are 25% to 30% less expensive than their competitors, giving a price competitiveness to Chinese manufacturers. This has forced Japanese and South Korean manufacturers to rethink about their lineups as they are now looking to launch mid-range offerings”, says a lead analyst at Fact.MR.
According to the study, the massive infrastructure push by the Chinese government has also given greater opportunities to the South Korean and Japanese manufacturers. South Korean construction manufacturing companies, including Doosan Infracore Co. and Hyundai Construction Equipment Co., have seen their sales rise in China’s domestic market in 2020.
Massive Infrastructure Push by the Chinese Government
Sales of the Asian construction equipment have been dampened by the COVID-19 and related slowdown, but China has been an outlier. The construction boom, fueled by the government’s stimulus package, has created opportunities for equipment manufacturers of all sizes.
“The future of excavator sales in China will depend to a large extent on China’s domestic market. Both domestic and overseas manufacturers are looking at the situation closely, as the country is prime for steady sales,” said the Fact.MR study.
Considering growing opportunities in Asia’s growing domestic market, the construction equipment market is becoming fiercely competitive. Japan’s Komatsu and Hitachi Construction Machinery, and South Korean Hyundai Construction Equipment are facing pressures from rivals who are pumping low-cost offerings into the market.
The promising outlook of excavator sales is part of a gaining momentum in the Asia construction equipment market. Although the COVID-19 pandemic caused the global economy to slow down in 2020, many governments have been quick to announce stimulus packages in an effort to turn around their economy.
“Many Asian countries haven’t been affected by the COVID-19 pandemic as severely as Europe or the US. While India is witnessing a resurgent second-wave, the pandemic is under control in many high-growth Asian economies. The focus on infrastructure development has provided an impetus to the construction equipment market in Asia,” says the lead consultant of the report.
The study further finds that some excavator companies are also using the strategy of leasing/renting old equipment. More and more companies choose renting over purchasing, and such a strategy is becoming a preferred choice.
According to the study, among various types of excavators—compact, crawler, dragline, long-reach, and suction—demand for compact excavator is expected to surge. Furthermore, demand for medium (13,227 - 22,046 lbs.)-sized excavators is growing at a steady pace as Asia’s construction industry prioritizes project costs.
The comprehensive market report on excavators analyzes the key strategies of leading players in the Asian excavator market. In addition to a detailed competitive analysis, the report also includes COVID-19 impact analysis.
Key Questions Answered
· Will Asia’s anticipated bullish run create enough opportunities for excavator manufacturers?
· Why low-cost excavators manufactured in China are eating into market share of international excavator manufacturers?
· How has COVID-19 impacted construction equipment sales in general and excavator sales in particular?
· Which excavator companies are likely to witness an increase in market share?
· Which excavator companies are likely to witness a decline in market share?
Explore Fact.MR’s Related Report on the Automotive Domain
Electric Excavators Market: Fact.MR's market study on the global market for electric excavators provides a detailed assessment on the key market dynamics, including drivers, trends, opportunities, restraints, and detailed information about the electric excavators market structure.
Compact Excavator Market: A recent study by Fact.MR on the compact excavator market offers a 9-year forecast for 2017 and 2026. The study analyzes crucial trends that are currently determining the growth of the compact excavator market. This report explicates on vital dynamics, such as drivers, restraints, and opportunities for key market players along with key stakeholders.
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