China Continues to Lose Market Share in Excavators, Says UniCredit Bank

October 11 00:00 2011

LONDON, October11 (RainbowNewsLine.com) – Despite the continuing downward trend in Chinese excavators market which recorded a further fall of 11% in August, the CCMA booked a record growth with sales up by 20% against the 25% fall of foreign suppliers.

In a research note published yesterday, analysts at UniCredit Equity Research mention that Chinese companies are doing exceptionally well in growing sales by 60% in ’11 as compared to +7% of foreign players. As a result, CCMA has captured the new market share of 8.44pp in’11, which is double to what they achieved in three years.

Chinese made 42.1% of the market in August’11; the major gains were experienced in medium (13-30T) and (>30T) segments, the analysts mention. The Korean’s declining market share has stabilized whereas Japanese players were the biggest losers. Japanese might have lost the ground mainly due to their higher focus and reviving efforts in their domestic market after Fukushima’s tragedy. An active expansion is likely to bring more participants and strong competition may erode the industry margins that currently are at high levels, the analysts say.

  Categories: