The sales volume of Russian specialized machinery and trucks on digital platforms continues to grow. The digital trend is driven by new services, such as the leasing function for secure online transactions. Meanwhile, Chinese suppliers continue to expand their market share, which is driving the market towards transparency. Excerpt from a report by the Russian newspaper Businessman.
According to the statistics of the Russian Machinery Manufacturing Association, the domestic shipment volume of Russian construction and road machinery manufacturing enterprises decreased by 2% year-on-year to 49.5 billion rubles in the first 8 months of 2024. The Russian Machinery Manufacturers Association pointed out that there is also a similar downward trend in import volume. The association believes that the main challenges in the industry include central bank interest rates, rising production costs, and the impact of government project payment rules, which may result in developers not receiving project payments completed this year until next year.
Another trend is the continuous increase in the proportion of Chinese brands in the Russian market. According to data from Avito at the "Specialized Machinery Business" conference, the main brands currently in demand include China's Lonking, SANY, XCMG, Shacman, Howo, Sitrak, and Shanmon. Industry insiders point out that most Chinese companies adopt a "non service" business model, focusing more on equipment sales, with after-sales parts supply being a secondary consideration. In addition, Türkiye brands such as Hidromek and Cukurova have also attracted market attention. Among Russian brands, only KamAZ made it onto the list.
Anna Kravchenko, the account manager of Avito Specialized Machinery, added that compared to September last year, the average price of specialized machinery has decreased by 4%.
Digital trends drive market development
The demand for digitization has become a significant trend in the market. Andrei Kovalev, Director of Avito Specialized Machinery, stated that as of September 2024, the sales volume of platform equipment has increased by 30% year-on-year, and the monthly visiting users have reached 1.2 million. He emphasized that the platform's core focus is on providing accurate information on prices, inventory, and device locations, while optimizing product and seller search functions to enhance user experience.
Kovalev pointed out that market transparency is crucial for companies. By integrating and validating data, the platform not only enhances market transparency but also helps combat non compliant behavior.
Policies and Actions for Market Transparency
The Russian government is also promoting market transparency. Stanislav Chertorizhsky, an official from the Ministry of Industry and Trade, stated that non-compliance has become a major issue as new suppliers enter the market. To this end, the government has collaborated with the "electronic passport" system to further strengthen market supervision and promote transparent development.
At the same time, Avito Special Machinery has taken multiple measures to improve transaction security, such as on-site verification of equipment, accurate advertising information, and seller reputation systems. These efforts aim to ensure the authenticity of the devices and combat false information.
Truck market dynamics
Kamaz remains the leader in the Russian truck market, with the other top five brands being Chinese manufacturers, including Sitrak, Shacman, FAW, and Dong Feng. Among them, Sitrak C7H became the best-selling model in the first nine months of this year. Although overall sales have declined, experts believe that this is mainly due to the impact of last year's high base effect.
In addition, the market share of Chinese trucks has rapidly increased from 10% in 2021 to over 60% currently. In terms of price, tractor prices have decreased by 11% year-on-year this autumn.
The growth of leasing services
Timur Osipov, the head of Avito's leasing services department, pointed out that the demand for digital leasing services continues to rise. More than 200000 users visit the platform every day, and the number of suppliers has reached 80000. The platform has also launched a secure online transaction function, where users pay their funds and the platform takes care of them. The funds are then transferred to the supplier only after the order is completed. In addition, in case of disputes, the platform will initiate arbitration proceedings to assist in resolving the issue.
The platform plans to expand the types of leased equipment, currently covering high-altitude work platforms, gantry cranes, and truck cranes. In the future, excavation loaders and other earthmoving machinery will be added.
What will happen next
Alexander Tsypin, founder of a business strategy consulting firm, believes that the new truck market will reach 120000 units this year. The reason for the cooling demand is the temporary adaptation of the market to new brands. He believes that sales in Russia could easily reach 140000 units or more. Sergei Blinov expects heavy truck sales to reach 115000 units this year. Experts recalled that despite the downward trend in the market, the performance in 2024 will still rank among the top three in history. He predicts that the truck market will reach 94000 units by 2025. Avito Spetstehnika believes that with the optimistic development of the special equipment and truck markets, sales will remain at last year's level. At the same time, it is expected that the demand for service platforms will continue to be high. Andrey Kovalev pointed out that the plan is to expand the functionality by 2025 to meet the growing interest: not only can it study product and supplier information catalogs, but it can also compare quotes.