Excavator sales plummeted

The cold wind is still bleak. In the Changsha Equipment Trading Center, few people were seen sparsely, and many stores were closed. The reporter saw at the warehouse of Hunan Road Xiangtong Construction Machinery Co., Ltd. (“Lu Xiangtong” for short), the general agent of Yuchai Heavy Industry Excavator in Hunan, that excavators of large and small were arranged in an orderly manner but no one appreciated it. There are more than 30 excavators brought back by customers from supply breaks, with different models and sizes, ranging from small machines of 6 tons to large machines of 23 tons. The brand sales of this small and medium-sized excavator ranked the top three in Hunan Province for three consecutive years, but now the scene is deserted, which is a great contrast to the rush of salespeople in previous years.

Many excavators were returned after the customer cut off the supply

Mr. Xie, who works in construction machinery in Changsha, has been in the business since 1997. Just after the new year, he drove the 20-ton crane to the equipment trading center for rent, but after a few days, no one asked. Mr. Xie couldn’t help but sigh. “In the past few years, there has been a lot of pressure from competition, with more machines and fewer renters.”

Mr. Xie bought it with a one-off payment, and there is no monthly pressure. According to the reporter’s understanding, most of the purchase of heavy machinery is from a bank loan with a down payment of 20%. The general loan period is 2 years, and the price of an 8-ton excavator is At more than 400,000 yuan, if the down payment is 100,000, and the loan is 300,000, in addition to interest, there are capital management fees and insurance premiums. The monthly supply and demand will be more than 20,000 within 2 years. With the reduction in engineering volume, many customers are unable to bear the pressure of monthly supply, so they have to cut off the supply and let the dealer to tow the excavator directly.

Lu Xiangtong sales representative Zhang Wenliang calculated an account for the reporter and bought an 8-ton excavator. If you work for an average of 8 hours a day, 5 months will be 1200 hours of work. The price in rural areas is about 200 per hour. The total price is 240,000 yuan. Excluding the 20,000 yuan driver’s wages and the cost of 36 yuan per hour for burning diesel, a profit of 177,000 yuan is left. If the business volume can reach this level, an 8-ton excavator can pay back its costs in one and a half years.

According to Zhang Wenliang, the current excavators in the second-hand market are mainly default machines. Because of the weak domestic economy, many “ticket” projects have been suspended. Real estate regulation has led to the suspension of construction of many projects, and the contractor’s capital has been blocked. I can’t afford the monthly payment, so I just don’t do it, just cut off the payment and return the excavator. The use time of the excavator that the company drags back is generally four to five months, and it is basically a loss if it is dragged back.

Zhang Wenliang said that if the general customer has not repaid the loan for three consecutive months, the company will request the excavator to be dragged back, but in fact, as long as the customer is not in a vicious arrearage, the company will consider the customer’s problems at its discretion and delay until five or six months. Back, during this period, the dealers will advance the payment for the customers. Because the bank has an overdue rate for dealers, if it exceeds a certain number, the bank will not lend to dealers, so dealers must advance funds.

Real estate is not strong, sales of excavators have fallen sharply

The pain of the agents is not only the loss caused by the customer’s interruption of supply, but the decline in sales is the biggest problem right now.

Mr. He, Sales Manager of Hunan Huize Machinery Equipment Co., Ltd., Atlas’s agent in Hunan, said that in 2011, Hunan actually sold more than 4,000 excavators. In 2010, there were more than 7,000 excavators. The second half of the year began to turn cold. This year, we mainly see the sales in March and April. Generally speaking, the projects that should be launched in March and April will be launched, and the demand will be greater after the project funds are in place.

Li Juan, the sales manager of Lu Xiangtong, told reporters that they sold 20 excavators in January last year and sold 324 units throughout the year. However, they sold more than 400 units the year before. Only 6 units were sold in January this year. Only five or six units were sold. In previous years, the sales season started after the Chinese New Year.

“Last year, a customer contracted part of the construction of an airport in Hunan. We ordered 10 excavators and paid the deposit. But then the project was not started because the funds were not in place, and the excavators were never bought. “Li Juan said that the industry predicts that this year will be even more sad than last year. During this period, some infrastructure projects will not change much, and it is estimated that the market will improve in 2014.

Zhang Wenliang said that whether the market improves or not depends mainly on the real estate market. There is not as much real estate for infrastructure construction, but the real estate in the first half of the year is mainly destocked, and there is little hope.


According to statistics, in 2011, 26 major excavator manufacturers in China sold a total of 178,352 excavators. Although an increase of 6.92% year-on-year, the cumulative growth rate has declined for 10 consecutive months since it reached a high point in February 2011. December was the lowest point of the year.

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