Construction machinery industry to see strong demand in Q1

Despite the Spring Festival advancing to January, the industry’s sales exceeded expectations. A total of 12,512 excavators were sold (up 1.1% YoY), and 7,920 loaders were sold (up 1.51% YoY). The export market performed outstandingly, with 7,107 excavators exported (+2.19%) and 4,214 loaders exported (+3.84%), effectively offsetting the slight decline in domestic sales.

The core drivers come from three aspects:
The release of equipment renewal demand driven by policies.
38 trillion yuan of key project investment plans were issued in 16 provinces and cities across the country.
Enterprises’ overseas layout has achieved remarkable results (e.g., Sany’s overseas sales increased by 50%).
The market shows structural characteristics:
Small – and medium – sized equipment sold well due to pre – festival stocking.
The demand for large – sized equipment is relatively weak.
Leading enterprises have full orders (Zoomlion dispatched 10,000 units worth 5.7 billion yuan).

Industry outlook:
Domestic demand improvement will be better than overseas sales.
Profits of enterprises like Liugong are expected to increase significantly (net profit in 2024 is expected to increase by 45% – 70%).
Infrastructure demand in developing countries continues to be released.

14 Feb 2025 reported by Machinery News