Excavator industry calls for clearing market obstacles - 2004 China excavator industry annual meeting

Macro-control has caused China's construction machinery industry to encounter a cold snap at its peak. However, to participate in the August 13 in Changsha held in the 2004 China excavator industry annual meeting of users believe that in 2004 China's construction machinery industry leading products excavator sales compared with 2003 will grow, this year to achieve sales of 42,000 units, an increase of 20% is promising.
In 2003, the total sales volume of excavators in China exceeded 60,000 units, becoming the world's *5656Big diggingexcavator market; The total sales volume of all domestic excavator manufacturers reached 34,800 units. However, in the first half of this year, the construction machinery industry was affected by the rise in material prices, coal, electricity and oil transportation constraints and macro-control, although the first quarter achieved a good start, an increase of 78% over the same period last year, but in April, excavator sales declined, the first half of the national excavator sales volume of 24,000 units, compared with last year, the increase decreased to 24.5%.
In this regard, Chen Zhengli, secretary general of the excavation machinery branch of the China Construction Machinery Industry Association, said that the total sales of excavators this year will definitely increase slightly compared with last year. From the long-term trend, the demand for excavators in China's market will continue to develop in waves, and the market demand space is huge.
China's excavator companies, such as Sany, Changlin, Liugong, Zhan Gong, Yuchai and Sunward Intelligence have been full of wings in the head-to-head confrontation with foreign brands, and the impact of imported second-hand excavators on the market has become an obstacle to its development.
In 2003, China sold more than 20,000 second-hand excavators smuggled into the country, equivalent to 1/3 of the total annual sales of domestic excavators. Although as early as 1998, the relevant state departments issued a document prohibiting the import of second-hand excavators, after which the import volume of excavators once declined significantly, but in the past two years, the domestic market demand for excavators has been strong, and the import volume has rebounded significantly.
According to Mao Zhongwu, director of Sany Group and general manager of Sany Heavy Industry, due to the lack of formal quality inspection and incomplete technical information, many second-hand excavators are sold to customers after simple assembly, spraying and adjustment operation. These products do not have a corresponding after-sales service at all, and the maintenance, repair and spare parts of the machine are costly. In addition, the second-hand mobile phone in terms of exhaust emissions, noise and safety performance is far from meeting the environmental protection requirements of its original country, which is bound to cause harm to China's environment.
Smuggling second-hand excavators flooded the market, undermined the normal economic order, and was not conducive to the healthy development of the industry. To this end, in June this year, Sany Heavy Industry submitted a proposal to restrict the import of second-hand excavators to the customs, industry and commerce, environmental protection and other departments in Shenzhen, Guangzhou and other places, resolutely resist inferior second-hand excavators, and increase the development of the second-hand excavator market.

- Securities Daily Li Jianjun -