Foreign parts plundered half of the Chinese engineering machinery

Editor's note: From 76,737 units in 2008 to 93,018 units in 2009, and 165,804 units in 2010, in the short period of three years after the financial crisis, excavator sales grew rapidly like crazy. According to statistics from the China Construction Machinery Industry Association, in March 2011, 24 major excavator manufacturers sold 43,063 excavators, an increase of 42.92% year-on-year, and a new monthly sales record. From January to March, 74314 excavators were sold, a year-on-year increase. 58.6%, continuing high growth rates, sales in March set another record for the same period of calendar year.

The booming and huge profits of China's construction machinery market have made other domestic industry predators "covetously drooling." Wuliangye Group, which produces white spirits, Rongsheng Heavy Industries Co., Ltd., and Geely Group, which builds cars, has started the excavator project. So many companies are flooding into the excavator industry, is a precursor to the rise of Chinese excavators? Or is the beginning of intense market competition?

Where the old and new companies are the cornerstone of the rise Some analysts believe that in the next few years, there are two trends that seem to be irreversible, one is that the proportion of local brands will reach 50%; the other is the excavator will snatch part from the loader market. These factors indicate that the future of the excavator industry is worth the wait. Although the overcapacity has already begun to appear, the imbalance between local brands and foreign brands still allows many local companies to invest large sums of money in the field of excavators. At present, although the competition in China's excavator industry is very fierce, there are few companies with a market share of more than 10%, and the industry sales rankings are undergoing major changes every year. This shows that there are still a lot of variables in the industry structure, which makes many companies see the hope of entering the game.

In 2010, at the same time as the sales of excavators increased rapidly, the market share of foreign brands rose slightly. This seems to indicate a problem - the role of the local brands in the industry is still not strong enough. If it is managed properly, it will impact the existing pattern. possible. In particular, companies such as Foton Lovol Heavy Industry, Sany Heavy Industry, and Mountain Rebuilding Machine have already demonstrated the miracle of the industry growth rate, which also provided new entrants with confidence. In addition, local companies currently face the embarrassment of global procurement of core parts. This also leaves new recruits with little barriers. As long as they have enough capital to build a supply chain that is similar to that of existing companies, Enough to ensure that their products are not too bad.

According to experts, large industry spans can no longer be a barrier for new entrants to force the excavator industry. In fact, a considerable part of the existing companies in the industry do not start from the manufacturing of construction machinery. If these enterprises possess the manufacturing experience of equipment manufacturing, some of the common technologies can also be used for reference, and their entry barriers will be even lower. This is the advantage that companies such as Rongsheng Group and China National Heavy Duty Truck have. It is also an advantage for other similar companies to enter the excavator industry. However, this can become the cornerstone of the rise of national brands?

Core Components Restricting the Rise of National Brands The essence of market competition is to obtain profits, but cruelly, behind the manufacturing companies’ indulging in innovative sales models and lowering business barriers in order to increase their performance, it is the reality that high profits are taken away by key component providers. .

At present, high-end core components and technologies such as hydraulic pumps and hydraulic motors, power shift transmissions, wet brake drive axles, slewing bearings, and integral multiplex valves are all in the hands of foreign companies. Domestic construction machinery brands mostly use foreign core components. For example, Cummins and Isuzu are selected for diesel engines. Japanese Kawasaki and German Rexroth are used for hydraulic parts, and ZF and other brands are used for gearboxes. A professional agency once conducted a survey on this in 2010. The results show that among the construction machinery parts to be matured in China, hydraulic components accounted for 88%, of which the high-pressure hydraulic system accounted for 52%, the variable hydraulic system accounted for 36%, than the row The second engine is several times higher. What is even more worrying is that the excavators that are currently the hottest in the market are the most severely missing areas. The proportion of blank spots is as high as 42%, which is almost twice as high as that of road maintenance machinery. This means that nearly half of the parts of the tens of thousands of excavators manufactured in 2010 in China are completely dependent on imports, of which the hydraulic parts also occupy the top spot.