CGS: November Domestic Excavator Sales Up 9.1%, Expects Continued Growth in Domestic and Export Markets

Stock News12-11

CGS released a research report stating that excavator sales growth in both domestic and export markets accelerated in November compared to October, confirming a synchronized recovery in demand. The non-excavator segment, driven by wind and hydropower projects, continued its rebound. Overseas, demand in Europe and the U.S. showed signs of recovery, while mining equipment demand in Africa, Australia, and Latin America remained robust. Chinese brands accounted for 19.2% of global demand (excluding China) in 2024, indicating significant room for expansion. CGS remains optimistic about the sustained upward trend in China's construction machinery industry.

Key highlights from CGS: 1. **Excavator Sales**: In November, total excavator sales reached 20,027 units, up 13.9% YoY. Domestic sales grew 9.11% to 9,842 units, while exports surged 18.8% to 10,185 units. 2. **Loader Sales**: Loader sales rose 32.1% YoY to 11,419 units, with domestic sales up 29.4% (5,671 units) and exports up 34.8% (5,748 units). 3. **Electrification Rate**: The November electrification rate stood at 25.7%, up 0.34 percentage points MoM. The cumulative rate for January-November was 23.35%, up 0.26 percentage points from January-October. 4. **Other Equipment**: - Truck and crawler cranes maintained strong domestic sales growth in October. - Forklifts posted double-digit growth in both domestic and export markets. - Aerial work platforms saw weak exports, dragging down overall sales growth. **Operating Data**: - Average working hours for construction machinery in November were 84.2 hours, down 13% YoY but up 4.08% MoM. The operating rate was 56.5%, down 12.1 percentage points YoY but up 1.5 percentage points MoM. - Komatsu data showed mixed trends in October: North America and Indonesia saw declines in operating hours, while Europe and Japan rebounded.

**Export and Mining Developments**: 1. January-October excavator exports totaled $8.52 billion, up 25.9% YoY. Key markets like Russia saw triple-digit growth, while Belgium, the Philippines, and Mali declined. 2. The world-class Simandou iron ore mine commenced operations, with potential annual exports of up to 120 million tons. 3. Sany Group completed its South Africa industrial park on November 19, with an annual capacity of 1,000 excavators.

**Risks**: Potential macroeconomic slowdown, policy implementation delays, intensifying competition, trade disputes, and currency fluctuations.

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