Japanese Komatsu excavator worries about the growth rate of the Chinese market

JapanKomatsu excavatorIt has always been a significant presence of brands in the domestic market. But since the beginning of this year, Komatsu in Japan has begun to worry about the growth rate of excavators in the Chinese market.

Komatsu hydraulic excavator in China. Japanese companies are beginning to worry about a slowdown in China, a high growth market that has been consistently growing.

Why does your company estimate a growth rate of only 10% in the Chinese market? "Komatsu's business forecast for China, released at the settlement briefing in April, caused ripples among Japanese investment institutions and securities analysts.

Generally speaking, a market growth rate of 10% should be relatively high. However, the Japanese industry is concerned about this number, undoubtedly due to the optimistic forecast of Hitachi Construction Machinery, the second largest construction machinery manufacturer in Japan, the day before. Hitachi Construction Machinery believes that the growth rate of the Chinese market will increase by 24% compared to the previous fiscal year.

    HitachiThe main products of Construction Machinery are hydraulic excavators, while Komatsu specializes in hydraulic excavators and dump trucks. Although there are differences in numbers between the two companies' seven major construction machinery, including these two devices, hydraulic excavators usually occupy a core position in construction demand, so there is usually no significant difference in the two companies' predictions. The predicted value of Komatsu this time differs by as much as 14% from Hitachi's construction, forming a sharp contrast and revealing Komatsu's cautious attitude towards the future Chinese market.

Komatsu Nagano Road Kunio explained, "It is very difficult to predict the Chinese market, and it is also a fact that the order volume has declined since April." In China, the best-selling period for construction machinery is from February to March after the Spring Festival (the first lunar month). The demand for hydraulic excavators in February was 2.1 times that of the same period last year, and it also maintained a high growth rate of 27% in March. After entering April, the growth rate slowed down to around 10-15%. The growth rate in April after the peak sales period is mostly close to the annual growth rate. Therefore, Komatsu made an annual demand forecast based on this number.

For the hidden concerns of Japanese excavators in the domestic market, another significant factor is the rise of domestic excavator brands. Like Sany,DoosanThe cost-effectiveness of excavator brands is very attractive to users, especially Doosan excavators, which have gradually threatened the market share of Komatsu, Hitachi, and Kobelco, the three major Japanese brands. Now it's up to Japanese brands to come up with solutions!