Mini excavator selling or becoming an excavator company to save straw

With the country’s purchase of commercial housing in 2011 and the slowdown in the speed of railway construction, the domestic construction market has seen a sharp drop in the demand for large and medium-sized excavators, coupled with the gradual entry of secondary excavators into the market, which has caused temporary saturation of the excavator market. Sales of excavators have been in a continuous downturn since mid-last year. With the transformation of new countryside, urban projects such as urban expansion, and the transformation of water conservancy and farmland, the demand for small excavators has risen against the trend and become the life-saving straw for excavator companies!

The reason why another small excavator is hot selling is that since 2010, many provinces and cities across the country have included small excavators in the list of subsidies for purchase of agricultural machinery, which has greatly stimulated the enthusiasm of enterprises in producing small excavators. However, it is worried that once the subsidies are cancelled, small excavator manufacturers may face market risks. As the new darling of funds, the new entry threshold for small excavators is relatively low and the threat of substitution is stronger. Once the subsidies are cancelled, the price advantage of small excavators will be lost, and it may be necessary to repeat the mistakes of loaders.

Overview of Domestic Mini Excavators:

In addition to the export of small excavators to Europe by Yuchai excavators in the early 1990s, few Chinese manufacturers have a successful history of exporting small excavators. This situation is currently changing and it is expected that more companies will try to increase their exports in the coming years. Shanhe Intelligence has successfully established its position in the European market and will begin exporting products to the North American market in the near future. Other companies such as Dalian Black Cat, Futian, Hengteli and Nanchang Huagong also will undoubtedly place development centers on exports. Doosan, with its global parts supply base in Yantai, will undoubtedly become an increasingly important exporter. Despite the additional transportation costs, and the high cost of purchasing high-performance foreign parts, the price of small-scale second hand excavators in China is still about 30% lower than that of foreign competitors. Currently, the total sales volume in Europe and North America each year reaches 90,000 units. If Chinese manufacturers choose reputable agents locally, their sales volume will successfully reach at least 10,000 units per year. Small end-use excavator end users are very sensitive to the price of the product. If the manufacturer provides good customer support, the cheap Chinese mini-excavator will become a strong competitive product.