Disclaimer: The following article was originally published by Mechanical Intelligence Station. Source: https://mp.weixin.qq.com/s/13sOi8AsdQyZRIsIO320mA
The material for this article is sourced from reports on foreign media websites and has been compiled and translated by the AI of Mechanical Intelligence Station.
The demand for large excavators and small bulldozers in Russia is growing. The pricing trend in construction machinery is as volatile as a roller coaster. (As reported by Russian Construction Equipment Network)
Summary of Content:
Shantui brand excavators have become a main driver in the sales growth at the Tekhstroykontrakt company.
In the past two years, the quality of Chinese equipment has seen notable improvements.
By the end of 2024, Tekhstroykontrakt plans to import approximately 10 excavators of the 120-ton class from Shantui, and the plant has also recently launched a 150-ton class model.
At the Eurasia Building Technology International Exhibition in 2024, Mr. Oleg Popov, the head of the sales department at Tekhstroykontrakt, discussed the current changes and future trends in the Russian construction machinery market.
An increase in refuse collection this year has primarily affected loader sales.
Excavator sales expect a hopeful increase of 50%.
Despite numerous challenges with imported equipment, 2024 has been overall a successful year for Tekhstroykontrakt. Currently, the company is maintaining steady growth in sales across all categories of machinery, with an increase of about 10%.
“Based on the operational data for the past nine months, we can assert with confidence that the sales revenue this year will continue to grow, with some product categories increasing significantly more than last year. For instance, by the end of 2024, the sales growth of excavators could potentially reach 50%,” said Popov.
In Tekhstroykontrakt’s portfolio, Shantui excavators are far in the lead, with sales already up by more than 120% this year. By contrast, the increase for the modern Hyundai brand excavators has been more modest, at about 10%.
Sales Driver: Shantui’s 120-Ton Excavator
Popov has shared that Tekhstroykontrakt currently supplies Shantui excavators ranging from 1 to 120 tons. The first two units of the 120-ton equipment have already reached the port of Nakhodka in Vladivostok: “One has been sold and is now being readied for a client in central Russia. The other unit is under negotiation for purchase by several companies.”
By the year’s end, Tekhstroykontrakt plans to introduce an additional 10 units of the 120-ton Shantui excavators. Furthermore, the Chinese factory has recently brought out a new model weighed at 150 tons, with a 200-ton model currently under development.
Popov also noted a substantial demand for Shantui dozers, particularly models weighing 50, 70, and 100 tons: “Last year, Shantui dozers accounted for 20% of the nearly 5000 units we delivered.”
Within Tekhstroykontrakt’s warehouses, aside from Shantui’s full range of equipment (excavators from 1 to 120 tons, bulldozers from 8 to 100 tons, loaders from 10 to 25 tons, motor graders from 15-20 tons, soil rollers from 10-36 tons, asphalt rollers from 1.5-14 tons, pavers, milling machines, recyclers, and compactors), there are also Hyundai brand units from South Korea (including wheel and crawler excavators up to 120 tons) and Tonly dump trucks weighing between 45 to 110 tons.
Feedback Leads to New Product Development
Popov believes that the quality of Chinese equipment has improved significantly in the last two years, largely thanks to customer feedback. Shantui representatives often visit Russian clients to enhance their products based on specific needs.
“Last year, we received a request from a customer for forestry excavators and passed on these technical tasks to Shantui,” mentioned Popov. “Our partners from China toured forestry businesses, listened to customer feedback, and designed excavators for those specific models. We expect to receive the first batch of these machines by the end of September.”
If a customer opts for machines equipped with Weichai and Linde components, they can be delivered within 20 days. Machines can also be fitted with Kawasaki hydraulic systems or Cummins engines according to customer requirements, but delivery times for machines fitted with Japanese, European, or American brand components could extend up to one and a half months.
Market Trends and Pricing
Popov outlines that the current market demand for large excavators is increasing because such equipment purchases significantly reduce transportation costs between projects.
“Not long ago, the market lacked a 60-ton excavator model because the 50-ton or 70-ton models were sufficient as replacements. However, Shantui has launched a highly successful 60-ton excavator which quickly gained customer favor.”
In addition, excavators with extended arms are also sought after, for example, a 40-ton model with a long arm has wide applications in northern regions, often in conjunction with vibratory pile drivers as drilling equipment.
Small dozers in the 8-ton category and those with rotatable blades are also growing in popularity.
Regarding price trends, Popov says, “If you look at price trends over the past two years, it resembles a roller coaster. Now the prices are down but had sharply increased not long ago. Some suppliers left the market, and new ones gained customers by lowering prices, only to increase them once their equipment became popular. However, about 15,000 excavators were imported into Russia over the past two years, leading to overstocked inventory and forcing prices to decrease. This kind of price fluctuation has always existed in the market.”
He added that the increased recycling tax that came into effect on July 1st did not impact the price of excavators or the sales of bulldozers, but it did have an impact on the sales of loaders.
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