Russian construction machinery dealers are seeking ways to cooperate with Chinese machinery.
- As foreign companies exit Russia, previous Russian distributors are turning their attention to Chinese brands. Those who had previously collaborated with European or Japanese brands have realized that working with Chinese equipment requires a completely different approach in terms of sales and service. Experience is needed here, as those who have worked with Chinese brands know which direction to take and how to proceed. Many new Chinese distributors are not familiar with the characteristics and end up with a surplus of defective inventory parts from previous models. This type of cooperation requires a longer period of adjustment.
Japanese construction machinery brands decide to withdraw from the Chinese market.
- Due to the decline in demand for construction machinery due to the downturn in the Chinese real estate market and increased competition with local low-cost product manufacturers, Katō, a Japanese construction machinery manufacturer with nearly 130 years of history, announced on July 12 that the company will dissolve and liquidate its hydraulic excavator manufacturing and sales subsidiary in Kunshan, Jiangsu Province.
- At the same time, Katō also announced plans to liquidate its joint venture in Xiamen, Fujian Province, which produces and sells hydraulic excavators. The Xiamen joint venture will continue production until August and gradually begin the liquidation process.
Swedish construction equipment manufacturer Volvo benefits from the recovery of the Chinese market, with a 9% increase in global order intake in Q2
- This increase is primarily due to the rise in purchasing power in the Chinese market. The slowdown in sales in China last year had an impact on operations so far this year.