China Construction Machinery Business Online
July 2012, Crane Market Analysis in China

Truck crane drops sharply, XCMG accounts for half of the market.

According to the statistics of China Construction Machinery Business Online, from January to July 2012, the accumulative truck crane sales volume of 13 major truck crane manufacturers in China totals 14,788 units, with a year-on-year reduction of 41.41%. XCMG Heavy Machinery sells truck crane 7820 units, with year-on-year reduction of 38.35% and a market share of 52.88%. In terms of the market share, the first three places are respectively XCMG Heavy Machinery, Zoomlion and Sany Heavy Industry, with the total market share of nearly 91%.

Crawler crane sales decline, Sany Science and Technology shows good performance.

From January to July, the accumulative crawler crane sales volume of 9 major crawler crane manufacturers in China is 1002 units, with a year-on-year reduction of 15.23%, among which, Sany Science and Technology ranks the first with 314 units; XCMG Heavy Machinery ranks the second with 214 units; Zoomlion places the third, with the sales volume of 173 units. The competition mainly focuses on the first four enterprises. From January to July, Sany shows the best performance, with a year-on-year growth of 73.48%; the other brands perform relatively worse.

Truck-mounted crane growth slows, Zoomlion gives good performance.

From January to July, the accumulative truck-mounted crane sales volume of the 11 major truck-mounted crane manufacturers in China is 6480 units, with a year-on-year growth of 11.47%.

The major truck-mounted crane manufacturers are still XCMG Truck-Mounted Crane and Shijiazhuang Mining Machinery, with the respective sales volume of 3331 units and 1102 units, among which, XCMG has a market share of 51.40%. In addition, Zoomlion Truck-Mounted Crane, Yutong Heavy Industry and Taian Furukawa increase largely, respectively 148.03%, 79.49% and 39.84%; XCMG grows by 14.04% compared with the same period last year.

Macroscopic interpretation

1. From January to July of 2012, China sees its GDP grow by 7.8%, which is the first time that the GDP growth dips under 8% for recent 3 years. The main reasons are mainly the slowdown of the export and investment growth. Affected by the weak global economy, China’s export is hard to recover in a short period.

2. Real estate: The growth of the commercial residential housing recently promotes the developers to increase the development strength in a certain extent, which, however, do not restrain the declining trend of the investment growth. In the future, on the premise that the regulation is not changed, it is predicted that the growth of the second half year will rebound slightly.

3. Railway and highway construction: The investment to the railway and highway has decreased a lot since the beginning of 2012, especially the railway, with the accumulative investment from January to July reducing 33.50% over the previous year. In the second half year, according to the investment planned at the beginning of the year and the recent financing frequency and amount of the Ministry of Railways, the investment to the railway will rises greatly. The investment to the highway also shrinks with the year-on-year reduction of 7.8%, which is the first reduction for 10 years. We do not place too much hope on the highway construction investment in the second half year due to two reasons: 1. the local income from the earth is insufficient; 2. there is no obvious improvement on the local financing platform and channels.

4. Mining industry: Seen from the investment to the mining industry from January to July, the mining industry still keeps rapid growth. However, the price the resources represented by coal and iron ore shows a downward trend, besides, against the background of the economy slowdown, the demand and price will decline further, which will restrain the investment to the mining industry. So in the second half year of 2012, the growth of the investment to the mining industry will fall compared with the 20.9% of the first half year.

5. Water conservancy and electric power construction: From the situation of the first half year, the two industries presents relatively stable performance. In the second half year, the two industries will maintain the level of the first half year, displaying good stability.

6. Export market: “Made in China” construction machinery products have been exported to many countries, mainly focusing on countries in Southeast Asia and Middle Africa. Due to the increased overseas expansion strength of Chinese equipment manufacturers and improved product quality, the export volume must show an upward trend. Besides, the high cost performance is the biggest advantage of China-made machinery for export.

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