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Forecast: China excavator in 2015 with an annual capacity will reach 50 Million units

Release:20/4/2012

The construction machinery industry sales in 2010 continued to hit the major companies have to increase investment, expand production capacity, mainly of corporate capital spending for the third quarter year-on-year increase of 50.6%. For example, domestic and foreign construction machinery enterprises in recent years to expand production capacity is expected in 2012 China's excavator production capacity to 385,300 units, the domestic excavator annual capacity of 500,000 units in 2015.

From the demand side, the future of the industry from the rapidly expanding power of the size of the market is bound to be weakened, growth will gradually return to normal state. Industry peak period is expected to appear in 2020, the annual demand of about 30 to 35 million units, the future of the industry, competition will be fierce. Recent years, major capacity expansion, diversification strategy, lead the trend of the industry, horizontal product chain competition intensifies, industry circulation to the inventory process will continue for a longer period of time, in the case of supply and demand imbalance, industry capacity utilization decreased, industry ROE (return on net assets) will come down gradually.

Compared to 2010 sales year, the 2011 market downturn has allowed manufacturers to stay quiet floundered earlier this year, is to enable enterprises deeply confused. Experts believe that, on the one hand, the crazy expansion of production, on the other hand the industry profit is rapidly shrinking. This is a terrible signal, and the lethality of the price war, coupled with the huge growth of the prices of raw materials, which greatly weakened the profitability of the industry. Domestic construction machinery market has entered the era of borderless competition, the construction machinery market in China has become the domestic and foreign engineering machinery manufacturers contested, and new domestic and foreign firms to enter the competitive threat, is bound to blindly rely on price to seize the enterprise market is a fatal blow. As the user continues to mature, their use of the product cost will be more concerned about the poor quality, not high-tech products can no longer meet the growing needs of the user, if the competition at only the level of primary low-level enterprises will be ruthlessly eliminated. However, it is disturbing that so far, the majority of enterprises in the quest for market share favorite to take the most effective means is still a price war.

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