South Korean companies, led by Doosan Infracore Co., logged robust sales in China’s excavator market in February as the world’s No. 2 economy increased spending on infrastructure, industry sources said Monday.
According to the sources, Doosan Infracore, South Korea’s No. 1 construction equipment maker, sold 1,603 excavators in the neighbouring country last month, up 57 percent from a year earlier.
Hyundai Construction Equipment Co., another South Korean construction equipment maker, sold 727 excavators, up 9.2 percent over the same period.
Last month, a total of 17,286 excavators were sold in China, much higher than the market estimate of 13,000 units.
Doosan Infracore sold 15,630 excavators in China for the whole of last year, up 44 percent from a year earlier. Hyundai Construction Equipment sold 7,234 excavators in the world’s most populous country, more than tripling from a year earlier, previous data showed.
Doosan Infracore racked up record sales in China and emerging markets. Its revenue in China surged 53 percent on-year in 2018.
Last year, 184,320 excavators were sold in China, surpassing the previous record high of 176,053 units in 2017.
China’s excavator market has been growing sharply thanks to the country’s ongoing railroad, highway and airport projects in lower-tier cities, as well as continued urbanisation.
In particular, China’s massive “One Belt, One Road” infrastructure drive aimed at increasing its economic clout in Asia is stimulating demand for excavators.
Tough environmental regulations are also a factor in the growing demand, analysts have said. The country accounts for roughly a third of the world’s construction equipment market.