China’s domestic excavator sales forecasted to exceed expectations

CME forecasted a 19% year-on-year increase in domestic excavator sales in May 2024, surpassing expectations. For overall sales, from January to May 2024, total sales declined by 9% year on year, with domestic sales almost stable (-0.5%) and exports down by 16%.

Regarding the second-half outlook, domestic infrastructure investment, and equipment replacement demand are expected to drive growth, potentially starting a new upward cycle. The overseas market is expected to rebound.

The last cycle was 2016-2020, and the current equipment is due for replacement, leading to a dual cycle of equipment renewal and industry updates. In addition, Chinese companies are expanding in “Belt and Road” countries and Western markets, showing growing international competitiveness.

Despite the real estate downturn, improved operational quality of leading manufacturers is leading to earlier profitability recovery, with ROE turning upward in 2023 and expected to improve in 2024.

28 May 2024 reported by Machinery News