What will be the development trend of Chinese construction machinery in 2019?
After the "4 trillion Plan" economic stimulus was launched in 2008, domestic construction machinery sales soared from 2010 to 2011, creating a new global growth high for construction machinery, and the industry fell into a long-term adjustment phase over the next four years.
At the end of 2016, new infrastructure investment based on Belt and Road Initiative (BRI) proposed by General Secretary Xi Jinping formed a new infrastructure growth point. At present, China continues to increase land and maritime infrastructure investment, while providing funds for projects in neighboring countries, which plays a positive role in the construction machinery industry. Belt and Road Initiative industry insiders found that infrastructure projects are usually contracted by domestic enterprises (or their joint ventures) and choose to purchase equipment from domestic manufacturers, greatly promoting the development of local manufacturing enterprises.
However, the best part of project investment has passed, so some international experts predict that the Chinese market will fall slightly in 2019 and will fall even more significantly in 2020, and they believe that such an adjustment will be a normal decline without a cliff decline.
From the point of view of aircraft, wheel loader, as the main force of domestic products, was overtaken by crawler excavator for the first time in 2017, because the crawler excavator has a wider scope of application and higher market acceptance. the former can even replace some of the functions of the latter. At the same time, after a decade of development, domestic enterprises have been able to develop equipment with sufficient performance to match the leading international manufacturers. In addition, some more economically superior agricultural machinery has replaced most of the functions of wheel loaders, which has also become an important factor in the decline in wheel loader sales.