Analysis of Export of used Excavator in Foreign Trade

Release date 2024-11-17 14:06:01 Reading 5

　　used excavator for sale Promote the export of remanufactured construction machinery and accelerate the cultivation of new foreign trade drivers

　　An important component of China's manufacturing industry, the remanufacturing market has broad prospects. However, in recent years, due to factors such as the epidemic, the slowdown of domestic infrastructure, and the obstruction of access to overseas markets, the number of second-hand equipment in China has exceeded 10 million sets, with a market value of about 600 billion yuan, and there is a serious backlog of old machines in host companies.

　　Africa, Southeast Asia, South America and other regions have a strong demand for second-hand Chinese construction machinery equipment, with prices continuing to rise, forming a large-scale "barrier lake" phenomenon. Promoting the remanufacturing and export of construction machinery is of great significance for promoting the healthy development of China's construction machinery remanufacturing industry and cultivating new foreign trade momentum.

　　used excavator for sale How to scientifically and effectively solve the practical problems faced by the construction machinery industry?

　　The proposal points out that the current size of the second-hand equipment aftermarket for construction machinery in China is about 520 billion yuan, and about 36% of the domestic industry's operating profit comes from aftermarket business, while this proportion is as high as 67% in Europe and America. Promoting the remanufacturing and export of construction machinery and equipment will fully tap into the post market business, cultivate new growth points in the manufacturing industry, and thus be conducive to stabilizing the growth of the manufacturing industry and promoting the development of the real economy.

　　According to industry estimates, the proportion of remanufacturing exports driving new machine sales reaches 1:3, which will effectively accelerate domestic inventory circulation, release new machine consumption demand, and promote the development and growth of aftermarket industries such as maintenance services and spare parts supply. At the same time, it is also conducive to promoting the "going global" of Chinese manufacturing and enhancing the dual circulation capability of the industry both internally and externally; Moreover, remanufacturing of construction machinery can achieve energy savings of 60% and material savings of 70%, effectively promoting green, low-carbon and circular development.

　　According to the visits and research conducted by committee members such as Mao Wanchun, it was found that there are currently no industry tax items for second-hand engineering machinery equipment, trade enterprises lack cost invoices for purchasing machines, there is a lack of evaluation and pricing qualifications, and there is a lack of remanufacturing standard system, which are all problems that plague the export of engineering machinery remanufacturing and seriously affect the brand image of China's engineering machinery.

　　used excavator for sale In this regard, the proposal suggests supporting the resolution of tax regulations for non road equipment, and hopes that the Ministry of Finance will clarify that the collection rate for non road second-hand equipment will be reduced from 3% to 0.5% in accordance with the value-added tax collection and management policy for second-hand car dealers. Explore the implementation of reverse invoicing. We hope that the State Administration of Taxation will allow the Changsha Free Trade Zone to conduct a pilot test, and follow the policy of reverse invoicing for second-hand cars, allowing trading enterprises to issue unified invoices for second-hand car sales to buyers when purchasing non road equipment included in the department's management catalog from natural persons.

　　At the same time, it is suggested that the State Administration for Market Regulation take the lead in adding relevant entries on "evaluation and appraisal of construction machinery" in the "Catalogue of Standardized Expressions for Business Scope Registration (Trial)", providing a basis for market entities to carry out inspection, testing, evaluation and pricing of second-hand construction machinery equipment; Support the improvement of the evaluation and inquiry mechanism for second-hand engineering machinery equipment, and adopt it in the judicial disposal process.

　　The proposal also suggests establishing a remanufacturing standard system and a full process traceability mechanism, led by the Ministry of Industry and Information Technology, relying on the China Construction Machinery Industry Association and leading enterprises, to introduce new standards for remanufacturing and maintenance remanufacturing; Establish an evaluation system for the recycling of second-hand engineering machinery equipment, calculate residual value, and assess issues that seriously affect the quality and safety of the entire machine, such as major accidents, flooding, fires, and assembly; Relying on relevant industry associations and domestic host manufacturers, establish a traceability mechanism for the entire chain of engineering machinery equipment transactions, comprehensively register the factory serial number, service life, performance parameters, maintenance status, circulation status, etc. of the equipment, and implement full process traceability of mainstream product equipment through the "one machine, one code" identity recognition method.

　　The State Council has issued the "Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Trade in" (hereinafter referred to as the "Action Plan"), which proposes that by 2027, the scale of equipment investment in industries such as industry, agriculture, construction, transportation, education, culture and tourism, and healthcare will increase by more than 25% compared to 2023.

　　On March 24th, Zheng Zhajie, Director of the National Development and Reform Commission, stated that for every 1 percentage point increase in China's urbanization rate, it can stimulate approximately one trillion yuan in new investment demand and over 200 billion yuan in new consumer demand; Promoting equipment updates in seven major fields including industry, agriculture, construction, transportation, education, cultural tourism, and healthcare is expected to create a huge market with an annual scale of over 5 trillion yuan.

　　The downstream of construction machinery used excavator for sale involves a wide range of fields, and how does the promotion of large-scale equipment updates affect construction machinery? How much increment will it bring in the future? Can the construction machinery market, which is still in a downturn, use this opportunity to reignite its upward momentum?

　　used excavator for sale Several professionals in the construction machinery industry chain have told Caixin that promoting large-scale equipment updates can stimulate potential demand for equipment updates and is expected to accelerate the upgrading of construction machinery equipment. In addition, from the perspective of equipment update cycle, many mechanical equipment have also reached the node of a new round of cycle updates.

　　What is the size of the "cake" that the construction machinery industry can share with the annual market size of equipment updates, which may reach 5 trillion yuan? Industry insiders have bluntly stated that large-scale equipment updates involve many fields, making it difficult to calculate the specific share that the construction machinery industry can receive. However, under top-down policy promotion, especially downstream equipment purchasers such as central enterprises and state-owned enterprises, the execution and speed of new equipment procurement will be faster.

　　Today, the concept of equipment updates has shown impressive performance, with multiple companies in the construction machinery sector leading the gains. Among them, construction machinery hit the daily limit up, with XCMG Machinery, Hengli Hydraulic, Sany Heavy Industry, and Weiwan Sealing leading the way in gains.

　　The promotion of large-scale equipment updates is expected to promote the upgrading of construction machinery and equipment, and will drive the clearance of old national first and second models, accelerating the process of stock reduction from national third to national fourth, "a person from the securities department of Sany Heavy Industry told a reporter from Caixin News Agency.

　　Excavators, loaders, forklifts and cranes, and road machinery are the top five best-selling categories in the construction machinery industry. At present, there are no general regulations in China that require the scrapping of construction machinery that exceeds its service life, and the inventory of construction machinery products continues to grow. According to relevant institutions' calculations, there are 388000, 362000, 757000, and 34000 excavators, loaders, forklifts, and road rollers with a national standard of Level 2 or below respectively, accounting for 19.79%, 37.84%, 13.35%, and 23.78% of the total inventory in 2023, which are 4.2, 6.4, 1.0, and 5.3 times the actual domestic demand in 2023, respectively.

　　Equipment updates involve multiple fields and links in production and manufacturing, resulting in high investment, long cycles, and slow results. Enterprises often lack enthusiasm. The Action Plan mentions promoting the upgrading and transformation of equipment in multiple key industries, including machinery.

　　For the vast stock market of construction used excavator for sale machinery, the upgrading of old models will undoubtedly provide a significant incremental market for related manufacturers. An industry insider stated in an interview with reporters that subsidies can be provided for phasing out and upgrading old construction machinery to "National IV" and new energy products, which can accelerate the replacement process of old equipment.

　　From the perspective of the update cycle of machinery itself, it is about eight years. Starting from the second half of the last update cycle in 2016, the second half of this year marks the start of a new update cycle. The policy to promote large-scale equipment updates involves infrastructure, transportation, and some manufacturing industries, all of which are related to the products involved in our machinery industry. In the future, it will definitely have a certain promoting effect on the recovery of the entire construction machinery industry, "an insider from a construction machinery manufacturer told a reporter from Caixin News Agency.

　　The policy aims to promote domestic demand and accelerate the upgrading of equipment. For the industry, some small enterprises may not be able to meet the requirements of the construction party for project equipment, which will be more beneficial to large machinery manufacturers, "a person from the Construction Machinery Securities Department told the Caixin reporter.

　　The window for large-scale equipment updates has arrived, but many construction machinery manufacturers are still cautious about whether it can have an immediate effect on their business operations. The rebound of domestic demand requires an external stimulus, but the specific effect still needs to wait for the real implementation. We are closely monitoring whether it can stimulate downstream willingness to replace equipment, "a leading upstream supporting manufacturer told a reporter from Caixin News Agency.

　　The above-mentioned personnel from the securities department of Sany Heavy Industry also believe that large-scale equipment updates will definitely have a promoting effect on the industry, but there is still some uncertainty in terms of policy implementation and reflected in enterprise operations. Enterprises also look forward to the introduction of more supportive policies in the future.

　　used excavator for sale It is worth mentioning that based on grassroots surveys and market research, CME estimates that the sales volume of excavators (including exports) in March 2024 will be around 25000 units, a year-on-year decrease of about 2.26%, and a significant improvement in the month on month decline. Looking at the market separately, the estimated sales volume in the domestic market is 14800 units, a year-on-year increase of 6.48%, indicating a return to positive growth in the market. Zheshang Securities pointed out that based on CME forecast data, considering the central government's promotion of large-scale equipment updates, the expected start of the construction machinery update cycle, the continued favorable real estate policies, and the high growth rate of infrastructure investment, the relatively sluggish period of the construction machinery industry is expected to gradually pass, and there is hope for marginal improvement in the future.

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