The demand for large excavators and small bulldozers in Russia is growing. The price trend of construction machinery is like a roller coaster, fluctuating.
At the 2024 Eurasia Building Technology International Exhibition, Oleg Popov, the head of sales at Tekhstroykontrakt, discussed the current changes in the Russian construction machinery market and future development trends.
Despite facing many difficulties in importing equipment, excavator sales are expected to increase by 50%. Overall, 2024 is a success for Tekhstroykontrakt company. At present, the sales of various types of machinery in the company are steadily increasing, with a growth rate of about 10%. Based on the operating data of the past nine months, we can confidently say that sales will continue to grow this year, with significant increases in certain product categories compared to last year. For example, by the end of 2024, sales growth of excavators may reach 50%, "said Popov. In Tekhstroykontrakt's product portfolio, Shantui excavators are far ahead: sales have increased by over 120% this year. In contrast, the growth rate of Hyundai brand excavators is relatively moderate, about 10%. Sales driving force:
120-ton shantui excavators Tekhstroykontrakt currently supplies 1-120 tons of Shantui excavators, according to Popov, the first two 120-ton units have arrived at the port of Nakhodka in Vladivostok: "One of them has been sold and is being sent to customers in central Russia. Several companies are in talks to buy the other." By the end of the year, tEKHSTROYKONTRAKT plans to import another 10120-ton mountain-pushing excavators. In addition, Chinese factories have recently launched 150-ton models, 200-ton models are also under development.
Popov also noted that there is a high demand for mountain bulldozers, in particular, the 50-ton, 70-ton and 100-ton models: "Of the nearly 5,000 pieces of equipment we delivered last year, the mountain bulldozers accounted for 20 percent." In the warehouse of Tekhstroykontrakt, in addition to the full range of equipment for the hill push (excavators of 1 to 120 tons, bulldozers of 8 to 100 tons, loaders of 10 to 25 tons, graders of 15 to 20 tons, soil rollers of 10 to 36 tons, asphalt rollers of 1.5 to 14 tons, pavers, planers, regenerators and compactors) , there is also equipment under the Hyundai brand, including wheeled and crawler excavators, of the 120-tonne class, and 45-110-tonne Tonly dump trucks. Feedback leads new product development Popov believes the quality of Chinese equipment has improved significantly in the past two years, thanks in large part to customer feedback. For example, Yamato representatives often visit customers in Russia to improve products according to their needs. "Last year, we received customer demand for forestry excavators and passed on technical tasks to Shantui," Popov said. "Our Chinese partners have visited forestry companies, listened to customers and designed excavators of the right type. We expect to receive the first delivery of this type of equipment by the end of September," he says, adding that if customers opt for equipment with Weichai and Lynd components, delivery can be made within 20 days. Kawasaki hydraulic systems or Cummins engines can also be installed on demand, but devices with Japanese, European or us-branded components will take up to a month and a half to deliver.
Market trends and prices demand for large excavators is increasing, says Popov, because buying such equipment can significantly reduce transport costs between projects. "Not so long ago, there were no 60-tonne excavators on the market because 50-or 70-tonne models were sufficient to replace them. But Shan launched a very successful 60-tonne excavator and quickly won over customers." Excavators with extended arms are also becoming more popular. For example, 40-ton long-arm excavators are widely used in the north, often as drilling equipment in conjunction with vibratory pile drivers.
Small 8-ton bulldozers and bulldozers with rotary shovels are also gaining popularity. When it comes to price trends, "If you look at the price trends of the last two years, it's been a roller coaster," says Popov. Prices are now down, but not long ago they were up sharply. Some suppliers dropped out of the market, and new suppliers lowered their prices to win customers, but then increased their prices after their devices became popular. However, about 15,000 excavators have been imported into Russia in the past two years, leading to a build-up in inventories and a fall in prices. This kind of price fluctuation has always existed in the market," he added, the increase in the 1 July recovery tax had no impact on the price of excavators and had little impact on sales of bulldozers, but had an impact on sales of loaders.