HD Construction Equipment strengthens ultra-large equipment
Bobcat accelerates with entry-level brands
China, the world’s largest construction equipment market, is on the move again. As sluggish demand for construction equipment in China showed signs of a rebound last year, Korean companies are also strengthening their market responses. They are enhancing production efficiency and supply-chain competitiveness while simultaneously reinforcing strategies for supplying localized products for the Chinese market.
According to sources in the construction industry, China emerged as the center of the global construction equipment market from late 2010 to the early 2020s, driven by a combination of large-scale urbanization and high economic growth. During this period, Korean construction equipment companies also generated a significant portion of their global revenue from China. Combining the letters of ‘Hyundai’ and ‘DEVELON,’ HD Construction Equipment Co., Ltd. recorded a market share of over 10% of the Chinese market between 2015 and 2019.
According to Off-Highway Research, a UK-based firm specializing in research on construction equipment, demand for construction equipment in China surpassed 200,000 units again last year. With an average annual growth rate of around 4%, demand is projected to exceed 250,000 units by 2029.
HD Construction Equipment Co., Ltd. is defending its profitability with product lines with strengths such as ultra-large equipment, while maintaining its local market share through more affordable models. In particular, the company consolidated product manufacturing from ‘hidden champions’ in China into Yantai Corporate to enhance operational efficiency and cost effectiveness, while also focusing on strengthening its capacity to respond to emerging markets. The company’s Yantai plant is expected to serve as its export hub, alongside its factories in Korea and India.
Korea’s Doosan Bobcat is also keeping a close eye on the Chinese market. Bobcat plans to accelerate its market penetration by leveraging its entry-level brand, ‘Bobcat Earthforce,’ which offers both core performance and price competitiveness tailored to the practical demands of construction sites.
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