February 11, 2022

Heavy Equipment - Chinese OEMs in the U.S. Market

600031 CH
By Jarrett Harris
Equipment dealers expect the volume of Chinese machines sold into their territories to increase yy during 2022, driven by availability and price advantages.

In OTR Global’s Nov. 23 report, Chinese heavy equipment dealers reported excess inventories and OEMs’ increasing focus on export opportunities. The subsequent Dec. 8 note found market share gains for two leading U.S. distributors of heavy equipment from Chinese OEMs because of availability and pricing advantages compared with other OEMs. In OTR Global’s Feb. 8 Used Equipment Report, six of nine sources said they expect the volume of Chinese-made equipment in their territory to increase yy during 2022. Similar to findings in December, dealers representing Caterpillar Inc., Deere & Co. and Komatsu Ltd. said Chinese manufacturers — specifically Sany Heavy Industry Co. Ltd. (600031 CH) — have been benefiting from looser machine availability, as well as lower prices. Sources said Chinese share gains have been most evident in the excavator segment as independent rental houses look for ways to supplement their fleets.


“I believe they’ll become more of a presence. We hear more from them and lose some deals to them now, specifically Sany. It’s due to availability. Two years ago, I’d have said I’d never heard of Sany and didn’t really care to, but now they may become a problem.”       

“I think their share will increase. … It has to do with tightness of supply [from other manufacturers]. If you can’t get your first two choices, you have to settle. They’ll probably be up 20%, having a presence from having no presence.”

“I think [Chinese OEMs’ presence] will probably increase just due to the lack of availability of other equipment and price. I see it in a lot of independent rental companies.”

“I’m absolutely seeing Sany increase. They are definitely taking advantage of the poor availability [from other manufacturers], especially in the excavator and mini excavator world. I haven’t seen so much of the other Chinese brands. I think Sany’s dealers are a bit more limited — at some point they need will to be able to support the product more robustly. I think some of those dealers aren’t the strongest, and how will they hire mechanics in this environment?”       

“If they can come to the market with tractors, they’ll sell them … [but] it’s an insignificant thing in my territory. Every one they’ve sold, the customers want me to trade it in to get them out of it.”    

“I don’t expect to see much impact in my areas. I see a few rentals, but only when a guy has no other option.”

“I haven’t seen any [Chinese machines]. But it might increase if other manufacturers don’t produce.”