China's domestic excavator sales are forecast to fall 44% year on year to 15,000 units this month, while export sales could fall 5% year on year to reach 10,000 units.
It has been reported that since December 1, 2022, the Chinese central government has banned both the manufacture and sale of off-road motorcycles (including excavators and loaders) whose exhaust emissions do not meet the latest Stage IV emission standards.
Hence , many customers in need of excavators bought cheaper Stage III excavators and loaders before December last year, and the market still needs time to accept new equipment that meets Stage IV standards, notes CME.
In addition , many end users were hit by limited cash flows in March, mainly due to poor project collection rates. This dampened downstream demand to some extent.
Unfavorable weather conditions such as heavy rains in parts of China interrupted excavator deliveries, which will also contribute to low domestic sales in March.
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However, China's social finance has sent positive signals to the market, with newly added special bonds reaching 3.8 trillion yuan ($552 billion) during 2023, up 150 billion yuan from last year, according to the annual report on the work of the government, presented in the "Two Sessions" - the annual meetings of China's highest legislative body and its highest political advisory body
